Emerging AI Regulations in Customer Communications Management
Shawn Phillips 
March 13th, 2025
Artificial intelligence (AI) is transforming customer communications management (CCM), offering businesses enhanced efficiency, automation, and personalization. However, with this transformation comes increased regulatory scrutiny. IT, operations, and compliance managers must navigate an evolving landscape of AI-related laws to ensure compliance and maintain customer trust.
This blog—the first in our CCM Compliance Check-Up series—examines some key emerging regulations impacting AI in CCM and what they mean for organizations producing regulatory customer communications.
Table of Contents
The Expanding Regulatory Landscape: What’s Changing?
As AI becomes more embedded in customer communications, regulatory bodies worldwide are implementing laws to ensure fairness, transparency, and data protection. The focus is on preventing bias, ensuring data security, and maintaining compliance with consumer protection laws.
As part of this ‘Compliance Check-Up’ I have summarized for you below some of the most significant AI-related regulations IT, operations, and compliance leaders need to track at this time. Since there are quite a few, they are organized by geography.
United States AI-Related Regulations
In the United States, the regulatory landscape for AI in customer communications is still evolving. While there is no comprehensive federal AI-privacy regulation, several existing laws and state-specific regulations impact how AI can be deployed in customer interactions.
The FTC emphasizes that AI systems must avoid perpetuating discriminatory practices. Companies using AI in customer communications must ensure their tools do not unfairly treat consumers based on race, gender, or other protected characteristics. The agency also stresses the importance of accuracy in AI-driven decision-making, warning businesses against models that generate biased or erroneous outcomes.
This law governs the accuracy of consumer data used in credit reporting to prevent AI-driven decisions from causing financial harm. AI systems involved in customer communications related to credit reports must comply with FCRA standards, ensuring decisions are accurate and that consumers have the opportunity to dispute incorrect information.
The CCPA gives consumers greater control over their personal data. AI-driven systems processing customer data in California must comply by providing transparency, allowing consumers to opt out of data sharing, and deleting personal information upon request. The CPRA, effective since 2023, further tightens regulations around sensitive personal information and mandates disclosure when AI-driven systems use customer data for automated decision-making.
In states like Illinois, the use of biometric data in AI-powered customer communications is strictly regulated. Companies must obtain written consent before collecting or using biometric data, safeguarding consumer privacy and avoiding costly lawsuits.
Algorithmic Accountability Act (Proposed)
If passed, this federal regulation would require businesses to conduct risk assessments of their AI systems, focusing on privacy, discrimination, and security risks. The goal is to proactively identify and mitigate potential issues before they become major compliance challenges.
Canadian AI-Related Regulations
Canada has yet to enact comprehensive AI-specific legislation, but existing laws on data privacy and consumer protection heavily influence AI deployment in customer interactions.
This federal privacy law governs how businesses collect, use, and disclose personal information. AI systems used in customer communications must meet strict transparency, consent, and accountability requirements. Organizations must inform customers when their data is being collected and explain how AI-driven decisions are made, particularly when they affect access to services or products.
Introduced as part of Bill C-27 in 2022, AIDA would introduce a risk-based regulatory framework to address potential harms associated with AI systems. Businesses using AI would need to ensure their tools operate fairly, without perpetuating discriminatory outcomes or misleading customers.
European AI-Related Regulations
The European Union (EU) is a global leader in regulating emerging technologies, including AI. Its approach to AI in customer communications focuses on protecting consumer rights, ensuring transparency, preventing discrimination, and safeguarding privacy.
GDPR applies to any AI system processing personal data in customer communications. Organizations must inform customers about data usage and obtain consent if AI tools engage in automated decision-making that significantly affects them. Customers have the right to understand automated decision logic, and AI systems must limit data collection to what is necessary for the given purpose. Failure to comply can result in severe fines and reputational damage.
What These Regulations Mean for IT, Operations, and Compliance Leaders
Understanding regulations is only half the battle—businesses must actively adapt AI-driven customer communications to align with compliance expectations.
Transparency and Accountability
Organizations must inform customers about how their data is used and the logic behind AI-driven decisions. Regular assessments and audits of AI systems ensure accountability and build consumer trust.
Data Privacy and Security
Compliance with laws like GDPR, CCPA, and PIPEDA is essential. Companies must implement robust data protection measures to prevent unauthorized access and ensure secure handling of consumer information.
Non-Discrimination
AI systems should be designed to avoid biases and discriminatory practices. Regular audits and updates help mitigate risks, ensuring fairness and regulatory compliance.
Compliance with Industry Standards
Continuous Monitoring and Improvement
AI systems should be continuously monitored and refined based on new data and regulatory updates. This ensures AI tools remain accurate, relevant, and compliant with evolving laws.
Final Thoughts: Preparing for the Future of AI in CCM
As AI continues transforming customer communications, staying informed about emerging regulations is critical for IT, operations, and compliance managers. By prioritizing transparency, data privacy, and fairness, organizations can harness AI’s power while mitigating compliance risks and ensuring customer trust.
Our next blog in the CCM Compliance Check-Up series examines the US Improving Disclosure for Investors Act and, if enacted, its potential to accelerate the shift to digital channels. Read it now!
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COMPLIANCE BLOG SERIES
CCM Compliance Check-Up Series
by Shawn Phillips, Product Manager for MHC NorthStar CCM
How can you stay ahead of constantly evolving compliance regulations? This series updates readers on changing regulations impacting CCM. You’ll learn about emerging AI regulations, the proposed U.S. Improving Disclosure for Investors Act, DORA, and updates to various and accessibility standards.
Shawn Phillips
Shawn brings over 25 years of tech and customer experience expertise to his role as Product Manager for MHC NorthStar CCM. He is driven by a simple philosophy: great technology should make everyone’s day better—customers and employees alike. His practical, hands-on approach helps companies streamline how they talk to their clients, making every message count. Before joining MHC, Shawn was employed at Heart of the Customer, where he worked with Fortune 100 companies to improve how they connect with customers—everything from reducing pain points to enhancing key moments in the customer journey.
