Navigating Diverse State AI Regulations Amid US Deregulation

Agentic AI,
Artificial Intelligence & Machine Learning,
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Schellman CEO Avani Desai Discusses Balancing Innovation and Compliance Amid Market Changes


Avani Desai, CEO, Schellman

The recent AI action plan initiated by the Trump administration marks a significant shift towards deregulation, effectively lifting a decade-long moratorium on state-level AI governance. This change enables states to rapidly implement their own regulations, resulting in a fragmented regulatory environment that could complicate AI deployment strategies.

Avani Desai, CEO of compliance-focused consulting firm Schellman, emphasizes the need for companies to develop adaptable policies capable of meeting the most stringent state regulations without the necessity of frequent revisions. Clear standards alongside enhanced transparency in model training and robust accountability mechanisms are critical. “The stakes concerning reputation are exceedingly high,” Desai remarks. “Regaining public trust once it’s lost is extremely challenging.”

Desai recommends that organizations conduct AI-targeted risk assessments, rigorously test algorithms before launch, continuously monitor for data drift, scrutinize sources of training data, and execute red-team exercises to uncover potential vulnerabilities before adversaries do. “Security teams must integrate AI as a core part of their threat landscape, irrespective of external developments,” she asserts.

In a recent video interview with Information Security Media Group, Desai elaborated on how the multiplicity of state regulations could complicate compliance for AI projects. She shared strategies for embedding governance into the innovation pipelines of AI and discussed how adherence to global standards might mitigate liability and trust-related risks.

At the helm of Schellman—recognized as the largest niche cybersecurity assessment firm with a keen focus on technology evaluations—Desai combines extensive experience in information security, operations management, and strategic marketing spanning both domestic and international landscapes. Her insights have been featured across prominent publications including Forbes and the Wall Street Journal, and she is frequently sought after as a speaker on pivotal issues such as security, privacy, and emerging technological trends.

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