Experts say compliance regulations can't keep up with AI’s adoption

AI is moving at a breakneck pace. Virtually every other day, a new model is developed—Anthropic is releasing its new hybrid reasoning model, DeepSeek is gearing up to release its next-generation R2 model, and Alibaba is also investing in its own AI. Industries are shifting left and right to incorporate the latest LLM technology into their workflows and offerings.

But rapid progress comes with a major wrench: compliance. As governments, businesses, and regulatory bodies struggle to establish clear guidelines, companies find themselves navigating a world of fragmented regulation.

We spoke with Selin Kocalar, co-founder of AI-powered compliance automation company Delve, to discuss the current state of AI compliance and how companies like Delve are stepping in to help businesses as governing bodies attempt to reach compliance consensus. 

AI shakes up tech: "AI is creating a paradigm shift. It's almost like the dot-com boom. There's novel technology, and people are not clear about how to respond to it," Kocalar notes. 

Emerging technology is outpacing regulatory efforts. Multiple entities, including federal and state governments, industry groups, and third-party organizations like the American Institute of Certified Public Accountants (AICPA), are attempting to impose structure, but consensus on regulation remains elusive. "I think it will take a while for the entire world to come to a consensus and then for that consensus to be enforced," Kocalar notes. "The biggest hurdle will be a time delay, of making sure that people are on the same page in terms of how AI should be developed and brought to the world, and how long it'll take for companies to implement that."

AI complicates compliance: "Compliance really is a response to risk," Kocalar explains. "It’s a way to help companies operate securely and keep servicing their customers." However, when AI enters the picture, secure operation becomes much more complicated. "With SaaS, we have standard compliance measures like data encryption and access controls. But with AI, the risks are more complex, like biases in decision-making and privacy concerns related to how data is being used." Because AI is evolving faster than regulations, Kocalar emphasizes that companies must proactively implement compliance measures rather than wait for formal mandates.