According to Forbes, the regulatory landscape for AI has exploded with Stanford’s Human Centered AI group reporting mentions in legislative proceedings nearly doubling from 1,247 in 2022 to 2,175 in 2023. The Brookings Institution found 47 out of 50 states introduced AI legislation in 2025 alone, while Manatt tracked over 250 AI bills touching healthcare across 47 states with 23 states already passing laws. DLA Piper is responding with their SAGE framework that uses AI to “atomize” complex regulations and identify overlaps, plus a proactive compliance service that combines machine learning with small language models trained by expert lawyers. The service runs entirely through DLA Piper to maintain legal privilege while parsing unstructured data to flag compliance risks before they become million-dollar fines.
The regulatory chaos is real
Here’s the thing about AI regulation right now – it’s a complete mess. There’s no single federal standard, so states are rushing to fill the void. But they’re not coordinating with each other. The result? Overlapping requirements, conflicting rules, and massive confusion for any organization trying to innovate while staying compliant. Imagine trying to launch a healthcare AI product that needs to comply with 23 different state laws that all say slightly different things about data privacy. It’s basically impossible without specialized help.
How law firms are fighting back
DLA Piper’s approach is actually pretty clever. Their SAGE framework breaks down regulations into their fundamental components – they call it “atomizing” – so you can see exactly where requirements overlap or conflict. But the proactive compliance service is where it gets really interesting. They’re using small language models trained by their own expert lawyers to scan through emails, documents, and communications to flag potential compliance risks before they blow up. And because it’s all hosted within the law firm, everything remains protected by attorney-client privilege. That’s huge for companies worried about creating discoverable evidence.
Why this matters beyond legal bills
This isn’t just about avoiding fines – though with healthcare ransomware attacks surging 30% in 2025 alone, that’s definitely part of it. Proactive compliance can actually prevent patient harm by catching privacy issues before sensitive data gets exposed. Think about it – wouldn’t you want your healthcare provider using every tool available to protect your medical records? The upward trend in data breaches shows we need better approaches than just reacting after the fact.
The broader competitive landscape
DLA Piper isn’t alone in this space. Harvey has become a big name in legal AI, focusing more on general workflow efficiency. Consulting firms like EY and BakerTilly are also expanding into AI compliance services. But here’s what’s interesting – the regulatory environment is expanding so rapidly that there’s room for multiple players. When you’ve got 47 states doing their own thing and no federal coordination in sight, companies are going to need all the help they can get. The question isn’t whether to use these services – it’s which approach makes the most sense for your specific compliance challenges.
