RFP SchoolWatch AI Series #1: Legislation & Regulation of AI in K–12 Education

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RFP SchoolWatch Series #1: Legislation & Regulation of AI in K–12 Education

AI and the American Classroom: Regulation, Innovation, and Responsibility

Artificial intelligence has moved swiftly from theoretical conversation to practical application in the K–12 sector. School districts are beginning to explore AI tools that can personalize learning, streamline administrative tasks, and support instructional decision-making. As adoption grows, education leaders are discovering that policy and law have not kept pace with technological advancement. The challenge lies not in whether AI will be used in education, but in how it will be governed, monitored, and aligned with public values and student safety.

Federal and state agencies are now entering a formative stage of defining boundaries to balance innovation with the protection of students’ rights, privacy, and equitable access. Understanding this evolving landscape is critical for district leaders, policymakers, and education vendors who are shaping what responsible implementation will look like in the years ahead.

Federal engagement around artificial intelligence in education has gained momentum through both executive and legislative efforts. In April 2025, President Trump signed the Executive Order on Advancing Artificial Intelligence Education for American Youth, an initiative intended to “promote AI literacy and proficiency among Americans, integrate AI into education, and provide teacher training to prepare students for an AI-driven economy” (White House, 2025). This directive signals a federal priority to embed AI awareness and technical understanding into national education frameworks, while also emphasizing the need for educator preparation. Regardless of political perspectives, this initiative is significant. 

The U.S. Department of Education has since issued guidance addressing AI use in schools, including a Dear Colleague Letter outlining how federal funds can support responsible AI adoption for instructional materials and student services (U.S. Department of Education, 2025). This guidance underscores the dual responsibility of enabling innovation and ensuring compliance with existing student data protections.

In Congress, bipartisan interest has led to proposals such as the NSF Artificial Intelligence Education Act of 2024 (S. 4394), which would authorize the National Science Foundation to fund AI education programs, teacher professional development, and partnerships between schools and higher-education institutions (Congress.gov, 2024). While not yet enacted, the bill reflects an emerging national framework that sees AI not merely as a technology issue but as a foundational element of workforce and civic readiness.

State and Local Levels Emerging Policy

While federal leadership is expanding, states remain the primary laboratories of AI education policy. As of early 2025, at least twenty states have introduced AI-related legislation or task forces focused on K-12 education (Education Commission of the States, 2025). Mississippi’s S.B. 2426, for instance, established an Artificial Intelligence Task Force to study instructional uses and data privacy implications of AI in public schools.

Several states, including North Carolina, California, and Oregon, have developed guiding principles or state-level advisories. The Four States’ Guiding Principles for AI in Education framework, published through Panorama Education, synthesizes the early policy directions of Utah, North Carolina, West Virginia, and Wisconsin, emphasizing ethical use, transparency, and professional learning for educators (Panorama Education, 2024).

The quality and specificity of these policies vary considerably. Some states offer only general cautions about privacy or plagiarism, while others have begun to craft detailed guidelines for procurement, implementation, and teacher training. Student Privacy Compass notes that many current state advisories “simply reiterate existing privacy laws” rather than creating new oversight or accountability structures tailored to their state landscape, student needs, and existing use volume (Student Privacy Compass, 2025).

Key Legal and Regulatory Issues

The introduction of AI into classrooms poses complex questions at the intersection of education law, technology ethics, and public accountability.

1. Student Data Privacy and Security

AI systems often depend on large volumes of student data, ranging from performance analytics to behavioral insights. This reliance raises significant concerns under the Family Educational Rights and Privacy Act (FERPA) and numerous state-level data privacy statutes. Districts must evaluate how vendors collect, store, and process data, and whether contracts explicitly define ownership and permissible use. We are also faced with the reality that, at this time, no official certification for FERPA compliance exists. Compliance at this time comprises a statement from educational providers and a demonstration of compliance through practices and, if they exist, internal policies.

2. Bias, Fairness, and Discrimination

Machine-learning models can inadvertently reproduce or amplify bias present in their training data. The Center for American Progress warns that without oversight, AI-driven assessment and prediction tools may risk unequal treatment of students or reinforce inequities already present in school systems (Center for American Progress, 2024).

3. Academic Integrity and Intellectual Honesty

Generative AI presents new challenges for assessing student learning. Districts are beginning to develop academic honesty policies that distinguish between acceptable AI-assisted learning and plagiarism. These local policies must align with instructional frameworks while considering how AI affects student writing, coding, and research assignments. While tools such as Turnitin exist, data on their use is not readily available.

4. Transparency, Vendor Contracts, and Procurement

Procurement offices are being tasked with vetting vendor claims, ensuring transparency in algorithms, and including AI-specific clauses in contracts. Districts that lack AI procurement policies may inadvertently expose themselves to compliance risks, particularly regarding data retention and algorithmic accountability.

5. Ethical and Governance Considerations

Beyond compliance, districts must also consider ethical governance, how human judgment is maintained “in the loop,” how algorithmic outputs must be explainable, and how educators will be trained to interpret AI recommendations responsibly.

Implications for K–12 Decision-Makers

For district and school leaders, the policy landscape is both an opportunity and a warning. Well-governed adoption of AI can enhance instructional capacity and operational efficiency, but unregulated experimentation carries legal and reputational risks. Districts should begin by aligning their internal AI policies with existing federal and state laws and by establishing local governance committees that include technology directors, legal counsel, educators, and parent representatives. Vendor due diligence must extend beyond technical specifications to include evaluation of bias mitigation, data security practices, and audit transparency.

Districts that proactively articulate governance frameworks are better positioned to qualify for upcoming federal or state grants referencing AI readiness. Conversely, those adopting tools without oversight may face scrutiny related to privacy, bias, or misuse. As early adopters learn hard lessons, a consistent message is emerging across the education sector: innovation must advance in step with policy, not ahead of it.

The governance of AI in K–12 education is unfolding in real time. Federal initiatives, such as the 2025 Executive Order on Advancing Artificial Intelligence Education for American Youth, mark an important step toward national coordination, while state task forces and policy frameworks signal a growing sense of urgency at the local level.

Legislation continues to lag behind innovation, and ethical guidance is uneven across jurisdictions. For now, the responsibility rests heavily on districts and vendors to develop governance models that protect students while enabling responsible experimentation.

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