---
title: "Regulators Are Blinking. Your AI Risks Aren’t Waiting."
description: "It was a pleasure joining Aashis Luitel and Tristan Ingold on Sprinto's webinar today. We covered a lot of ground in an hour, but here's what I keep coming back to: the worst thing leaders can do..."
url: https://kaynemcgladrey.com/regulators-are-blinking-your-ai-risks-arent-waiting/
date: 2026-05-14
modified: 2026-05-13
author: "Kayne"
image: https://kaynemcgladrey.com/wp-content/uploads/2026/05/Sprinto-Webinar-May-14.webp
categories: ["Articles"]
type: post
lang: en
---

# Regulators Are Blinking. Your AI Risks Aren’t Waiting.

!(https://kaynemcgladrey.com/wp-content/uploads/2026/05/Sprinto-Webinar-May-14-768x401.jpeg)

It was a pleasure joining (https://www.linkedin.com/in/ashluitel) and (https://www.linkedin.com/in/tristaningold) on (https://sprinto.com/events-and-webinars/the-wave-of-change-to-help-brands-tackle-new-age-ai-adoption/) today. We covered a lot of ground in an hour, but here’s what I keep coming back to: the worst thing leaders can do right now is **wait**.

The timing of the webinar was comedy gold. Days before we chatted about AI governance, the (https://kaynemcgladrey.com/the-eu-ai-act-delay-that-wasnt-a-loophole/) to delay high-risk AI system rules to December of next year, carving out machinery entirely and calling it *simplification*. (https://kaynemcgladrey.com/ai-wins-in-colorado-legislature/), watering down SB 205’s requirement that companies explain how their AI makes decisions. Now it’s just notification and an appeal right, pushed to January 2027. Two years of fierce debate produced less transparency and more delay, and probably increased the potential harms to consumers doing things like applying for jobs or trying to get a mortgage.

Some leaders will read this as permission to slow down. It’s the opposite.

When regulators blink, your risks don’t. Employees are still shoveling proprietary information into public models. Vendors are still updating their terms of service overnight, turning approved tools into data siphons. U.S. tech giants are pouring billions of dollars into AI development, which is a staggering amount of capability flooding into tools your teams already use, with governance struggling to keep pace. The risk surface isn’t shrinking. It’s compounding.

And the EU and Colorado retreats prove that external regulation will not save you from internal negligence. If you’re waiting for the law to force your hand, you’re gambling with your intellectual property that, once it hits a public training set, is gone permanently. Not breached. Destroyed. There’s no incident response plan that covers losing all your IP from a series of well-meaning but ill-informed copy-pastes.

What works is what Aashis, Tristan, and I discussed: single-threaded ownership where a named human owns each AI use case end to end (RACI charts FTW!), guardrails hardcoded into CI/CD pipelines instead of manual gatekeeping or blaming the human in the loop, and a curated marketplace of approved tools that makes the compliant path the easiest path. Monitor behavioral drift, not just uptime, because your model can be alive and lying at the same time.

The regulatory clarity people are waiting for may never arrive in a form worth waiting for. Build the governance now.