Governments are rapidly introducing artificial intelligence regulations, but enforcement will determine whether those frameworks are effective, according to a new report from research firm Omdia. In AI Regulation: Analysis of Global Policies and Regulatory Frameworks, which examines AI policies across the Americas, Europe, Asia and Oceania, the firm argues that clear compliance requirements and credible enforcement will be essential as countries move from policy to implementation.

Enforcement Takes Centre Stage

Omdia says legislation alone is not enough, with regulatory credibility depending on whether organisations face meaningful consequences for non-compliance. “Mechanisms for addressing non-compliance should be a critical element of any AI regulatory framework,” said Sarah McBride, principal analyst for regulation at Omdia. She said financial penalties remain the most common enforcement tool, although some jurisdictions have also introduced sanctions including service suspensions and, in some cases, imprisonment.

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The European Union has adopted one of the strictest enforcement regimes through the AI Act, with penalties of up to €35 million or 7% of global annual turnover. South Korea’s AI Basic Act provides for fines of up to 30 million won, or about $20,000, highlighting how approaches to enforcement vary across jurisdictions.

Governments Expand AI Strategies

Alongside regulation, governments are increasingly adopting national AI strategies aimed at strengthening competitiveness through investment in research, workforce skills, technology adoption and digital infrastructure. McBride said AI sovereignty is becoming an increasingly important priority as policymakers seek to balance economic competitiveness with national security concerns.

Implementation Becomes The Next Challenge

Although national AI strategies are becoming more common, relatively few jurisdictions have fully implemented dedicated AI legislation. The EU AI Act entered into force in August 2024 and is being introduced in phases, while South Korea’s AI Basic Act took effect in January 2026 with a grace period before financial penalties are enforced.

Omdia said sectors including telecommunications are likely to face additional compliance requirements and higher operating costs as AI-specific rules take effect. McBride said the next priority for regulators should be practical implementation, supported by effective enforcement and clear guidance that businesses can follow.