Federal moratorium on state AI laws creates regulatory disruptions, and Deepfark protections will finally emerge
(ISStories Editorial): – Los Angeles, CA, June 12, 2025 (IssueWire.com) – The entertainment industry is tackling unprecedented legal uncertainty as it creates a patchwork of protections and restrictions that could fundamentally reshape the way Hollywood operates. While federal lawmakers want to pass the controversial decade-old moratorium on state AI regulations, individual states simultaneously enact groundbreaking deepfake protections that directly impact actors, musicians and content creators.
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The perfect storm of AI regulations
The landscape of regulation has become a minefield for entertainment companies. House Republicans have surprised tech industry watchers, infuriated many state governments, added provisions to Republicans’ signature “big, beautiful” tax bills, and banned states and regions from regulating artificial intelligence for a decade. Meanwhile, at least 40 states, Puerto Rico, the US Virgin Islands and the District of Columbia, introduced the Artificial Intelligence (AI) bill in 2024.
The interests will not be high. Existing laws in copyright and other intellectual property fields are extremely insufficient to rectify the harm caused by unauthorized digital replicas. This regulatory gap has made entertainment experts vulnerable to AI exploitation, and studios are navigating an increasingly complex legal environment.
Entertainment industry under siege
The impact on creative professionals is immediate and serious. From rogue deepfakes that threaten the actor’s career to AI-generated content that challenges the writer’s livelihood, the entertainment sector has found itself at the epicenter of the American battle for AI regulations.
Recent legislative developments include:
Take it Down Act: The House of Representatives passed the first major law in April 2025 to tackle AI harm.
There is weight from a legal expert
“Since the advent of digital media, we have seen the most significant changes in entertainment law,” said Bridget Brunbour, an attorney specializing in entertainment and technology law. “The federal moratorium creates a dangerous blank where bad actors abuse performers and legal studios suffer compliance. This regulatory disruption runs on legal quick sands in the industry.
Brumbaugh continues, “The irony is clear. Though Congress prevents states from protecting their citizens, individual performers will remain vulnerable to AI exploitation. Immediate federal measures are needed to establish clear and enforceable standards to protect creative professionals while thriving innovation.”
Industry response and future meaning
Key studios and talent agencies are in a hurry to adapt their contracts and practices to address AI-related risks. Hundreds of actors and Hollywood insiders have signed open letters seeking stronger protection, but production companies are putting pressure on them to implement AI disclosure requirements.
Regulatory uncertainty extends beyond individual performers. Production insurance, distribution contracts, and international collaborative transactions all face new complexities as AI capabilities advance faster than they can adapt.
What’s next?
As the 2025 legislative meeting progresses, states could potentially fill in the regulatory and legislative invalidations left behind by federal inaction. Industry observers anticipate a wave of litigation that challenges both federal and individual state laws, and set up a Supreme Court showdown that can determine the future of American AI regulation.
The entertainment industry’s response to these developments will affect how other sectors approach AI regulations, and will pioneer Hollywood’s current legal battle for the future of AI in America.
