AI and Regulation: Tips for Your Agency

CLEAR recently hosted a webinar to explore the intersection of artificial intelligence and regulatory environments. Navigating the Regulatory Landscape with AI: Opportunities, Risks & Realities on July 9 brought together several industry experts to dive into how AI impacts regulators. Key takeaways from the webinar for state regulatory agencies included:

  1. Enhance Oversight.

While AI helps improve efficiency, human oversight remains essential for accuracy. Use AI as a tool, not an authority.

  1. Establish Policies.

Ensure that your regulatory agency oversees the use of AI; establish formal policies to define acceptable use.

  1. Build Guardrails.

Protect sensitive data at your regulatory agency. Educate your staff about public vs. private AI tools to avoid unintentional exposure.

  1. Refine Prompts.

Prompt engineering means giving detailed instructions to your AI tool to create your answer; careful prompt engineering remains essential for producing high-quality responses.

Agentic AI To Help Virginia Streamline Regulations

Virginia plans to pilot agentic AI and GenAI tools to reduce and update state regulations, following an executive order from Gov. Glen Youngkin, signed July 11. The order establishes an agentic AI-powered statewide review to reduce regulatory burdens and keep regulatory documents up to date. The executive order directs all executive branch agencies to use AI to review regulations and produce a regulatory reduction report; the report serves to identify “unnecessary regulatory requirements and highlight language in regulations and guidance documents that can be streamlined.” The order also directs these agencies to use AI to enhance period review; for periodic reviews that take place after December 31, 2025, the executive branch agencies must “leverage AI for analysis of each regulation” to draw conclusions; these include the possible redundancy of the regulation.

Colorado Ranks 46th in State Occupational Licensing Index

Colorado ranks 46th overall for all states and Puerto Rico in the 2024 State Occupational  Licensing Index from the Archbridge Institute and the Knee Regulatory Research Center; the score places the state 46th among states for the highest occupational licensing burden. Besides the overall ranking, the report also features a state profile ranking that puts states in one of five quintiles. Colorado ranks five in the quintile system, with one the “most occupational licensing” and five the “least occupational licensing.” The quintile system reviews several factors, including barriers and licenses, along with universal recognition reforms. The licensing index, released in August, contains information on 284 occupations.

See a listing of all state rankings in the latest edition of the State Occupational Licensing Index.

More Regulatory News Headlines

PA House passes legislation to update barber regulation board rules

Pennsylvania’s House of Representatives passed legislation (H.B. 1646) to help keep Pennsylvania’s barbering profession “running efficiently by updating rules for the State Board of Barber Examiners.”

North Carolina the 44th Member of Interstate Medical Licensure Compact

On Tuesday, July 1, 2025, Governor Josh Stein signed a bill that makes North Carolina the 44th member jurisdiction of the Interstate Medical Licensure Compact.

U.S. Medical Regulatory Trends and Actions

The Federation of State Medical Boards offers information about the “make-up, policies and work of state medical boards, as well as national aggregated data on physician licensure and discipline.”

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