As AI becomes more embedded in everyday life and business operations, companies are facing a growing regulatory maze at the intersection of state privacy laws and emerging AI standards. With Congress declining to pass a proposed 10-year ban on state-specific AI legislation, and with states like California and Colorado passing consumer privacy laws that contain AI and automated decision-making provisions, businesses must navigate sometimes overlapping concepts to protect data. This article explores the privacy laws that impact the use of AI and automated decision making and offers a practical guide for business leaders that aligns AI innovation with privacy expectations.