AI Ethics Watch: Policy Trends That Could Disrupt Your Business Model

The AI revolution is far from slowing down. But the real disruptor might be a shift in policy, not the next product launch.

From the White House to state legislatures, debates are heating up over how AI should be governed. And the channel—often left out of the spotlight—is sitting right in the middle of it. With tools like OpenAI’s ChatGPT and GitHub Copilot now embedded in partner platforms, MSP offerings, and sales demos, it’s time to pay attention.

Let’s break down what’s changing, what’s holding steady, and what could quietly upend your business model.

The Deregulation Wave: Blessing Or Burden?

In January 2025, President Trump signed Executive Order 14179. Titled “Removing Barriers to American Leadership in Artificial Intelligence,” it repealed many of the AI safety and transparency requirements introduced in 2023 under President Biden.

Gone are the mandatory risk assessments and required reporting for large AI models. The new order encourages speed. It prioritizes innovation over accountability.

This might sound like good news in the form of less red tape and faster product cycles. But deregulation at the top shifts the risk elsewhere. Bias. Misinformation. Copyright issues. Privacy concerns. None of these disappear. They simply land on the people and organizations deploying the tools, i.e. you and your customers.

What Federal Policy Still Controls

Even with the rollback, not everything is off the table.

The National Institute of Standards and Technology (NIST) is still pushing forward with AI risk frameworks. OpenAI has signed on as a partner in testing and evaluation efforts.

The U.S. AI Safety Institute is working to create standards for transparency, model disclosures, and public safety protections.

The FTC has signaled it will continue to monitor deceptive uses of AI. Especially in consumer-facing products, marketing content, or hiring tools.

GitHub Copilot has already been named in lawsuits tied to copyright. Microsoft is standing behind it, but the legal questions around copyright remain despite the legal dismissal of claims against the hyperscaler. That uncertainty flows to developers, integrators, and partners, essentially anyone using or reselling the tool.

Global Implications, Local Impact

While the U.S. loosens restrictions, other countries are tightening theirs.

The EU AI Act is on track to pass this year. It categorizes AI systems by risk level. High-risk models will face strict obligations around transparency, auditability, and human oversight.

This matters for the channel. Especially if your customers do business internationally or operate in regulated sectors.

Your AI-enabled tools might pass U.S. standards but fall short abroad. Vendors may split offerings to meet different regional requirements. And that means more work—and more risk—for partners managing deployments or offering support.

Channel-Specific Action Plan

For vendors, distributors, and MSPs alike, here are three things to do this quarter:

Audit your AI usage

Identify which tools you’ve integrated or are reselling. Know where the models come from. Know what data they use and whether your team can explain how they work.

Train your sales and support teams

Can they speak clearly to what the AI tool does—and what it doesn’t? Can they help a customer understand limitations or risks?

Vet your vendors

Ask partners about their compliance plans. Do they disclose model origins, limitations, or risk factors? If not, your team could be on the hook when things go wrong.

Ethics Is A Strategic Advantage

Ethical AI is about strengthening your position in the channel ecosystem. It’s how you retain trust when something fails. It’s how you differentiate in a crowded, fast-moving market. It’s what keeps your customers confident that you’re selling more than hype.

This quarter do more than just watch the headlines. Use this moment to lead toward your ethical AI future.

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Photo by Solen Feyissa on Unsplash