Let's have some straight talk about protecting your clients and your career.
If you run a Facebook Group like "Small Business Tax Tips" or "Insurance Planning 101," you know how much work it takes to keep people engaged. To save time, a lot of you have started using AI to draft posts, summarize tax codes, or answer basic questions.
I get it. It's efficient. But as we head into 2026, we need to be honest about the risks. The rules have changed. The tools that saved you time last year are now the exact things that could put your license in jeopardy.
You might think, "I'm based in Florida (or Texas, or Ohio), so why do I care about laws in Brussels or Chicago?"
The Hard Truth
AI laws do not respect borders. They don't care where your office is; they care where your data goes and where your advice lands.
Here is the straightforward breakdown of the laws hunting you in 2026.
1. The "Robo-Advice" Risk
You might think these are just state laws. They aren't. They are "long-arm" statutes.
The Reality: If you have a member in your Facebook group from Chicago, and your AI chatbot screens them out of an opportunity or gives them biased financial advice based on their zip code, you just violated Illinois HB 3773 (Effective Jan 1, 2026).
The Kicker: This law amends the Illinois Human Rights Act to make AI discrimination a civil rights violation. It doesn't matter if you are sitting in Miami; if the "victim" is in Illinois, their courts can claim jurisdiction.
The Update: Colorado's enforcement (Effective Feb 1, 2026) targets the outcome, not just the intent. If your bot gives bad advice that harms a protected class, you are liable.
2. The Marketing Trap
We all want to market our services as cutting-edge. But be careful with phrases like "AI-Powered Savings" or "Our AI finds loopholes humans miss."
The FTC (Federal): The FTC is enforcing "Operation AI Comply" aggressively. If you claim your AI is better than a human, you legally have to prove it with data. If you can't back it up, it's a Deceptive Trade Practice. This applies to every business in the US.
California AB 2013 (Effective Jan 1, 2026): This law demands transparency about the data used to train AI. If you use an AI tool that was trained on scraped data (and most are), and you market it to Californians, you could be pulled into a transparency lawsuit.
3. The Confidentiality Breach
This is the big one. We all know not to share Social Security numbers. But are you pasting complex client scenarios into ChatGPT to get a quick answer?
Stop. Right. Now.
EU AI Act (Effective Aug 2, 2026): If you have a single client in Europe (an expat, a dual citizen), using a non-compliant AI tool to process their data can trigger fines of up to 7% of your global revenue. This law applies extraterritorially—meaning they can fine you just for processing the data of an EU resident, regardless of where your server is.
China Cybersecurity Law (Effective Jan 1, 2026): The amended law explicitly expands its reach to any activity that "endangers China's national security" or data interests. If you handle data for a US subsidiary of a Chinese firm and feed it into an AI, you could face personal fines or business blacklisting.
The Bottom Line
In the digital world, you are "global" whether you like it or not.
- Human Verification: Never let AI post advice directly. You are the expert—verify everything.
- Clear Disclaimers: Tell your group members that AI is used for drafting, but advice comes from you.
- Know Your Member: If you have members from Illinois or Europe, you are playing by their rules.
Stay sharp, stay compliant, and protect your practice.
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