Legal Ramifications of AI in Education: Key Insights

​“The future is already here — it's just not evenly distributed.” This quote by William Gibson resonates deeply with educators navigating the rapid integration of AI in schools. While AI offers transformative tools for personalized learning and administrative efficiency, it also introduces complex legal challenges. 

Recent incidents, such as the sentencing of a former Maryland school official for creating a racist AI-generated deepfake, highlight the potential for misuse and the urgent need for clear policies. Moreover, a Massachusetts family's lawsuit against a high school over alleged AI-assisted cheating underscores the ambiguity surrounding AI's role in academic integrity. 

As AI becomes more prevalent in education, it's imperative for educators to understand its legal ramifications to harness its benefits responsibly. Therefore, today, we will explore some of the key laws related to potential legal issues with AI in education.

Key Federal Laws Impacting AI in Education

Let’s explore the core U.S. federal laws that shape how educators can ethically and legally use AI tools. From student data privacy to algorithmic accountability, these laws serve as the backbone for responsible AI adoption in education. Here are the laws and associated legal issues with AI in education:

Family Educational Rights and Privacy Act (FERPA)

Let’s talk FERPA, the Family Educational Rights and Privacy Act. As an educator, you’re no stranger to student data privacy, but with AI entering your classroom, FERPA takes on a new level of importance. This federal law gives parents (and students over 18) control over their educational records, meaning you can't just feed student data into any AI tool without ensuring it's FERPA-compliant.

Example:

Say you’re using an AI-based grading assistant or learning app. If that system collects identifiable student info and stores it on third-party servers without proper safeguards or parental consent, you could be in violation. 

In fact, in March 2025, a class action lawsuit was filed against Instructure, the parent company of Canvas, a widely used learning management system. The lawsuit alleges that Instructure collected various personal information about students, including names, gender and pronouns, academic institutions, student IDs, and profile pictures, potentially violating federal and state privacy laws.

So, before integrating any AI tool, check: Who owns the data? Where is it stored? Is it being used to “train” future models? FERPA isn’t anti-technology, but it is pro-transparency and consent.

The Elementary and Secondary Education Act (ESEA) and the Every Student Succeeds Act (ESSA)

The ESEA, enacted in 1965, was a landmark federal law aimed at closing educational achievement gaps by providing funding to schools serving low-income students. ESSA, signed into law in 2015, reauthorized ESEA and shifted more responsibility to states and local districts while maintaining a focus on equity and accountability. 

ESSA emphasizes high academic standards, annual assessments, and support for struggling schools, all while granting states greater flexibility in achieving these goals.

While ESSA and ESEA do not directly address data privacy, they intersect with laws like FERPA, requiring careful consideration of how student data is used and protected when using AI technologies.

Example:

A notable case highlighting the complexities of AI in education involves a student at Hingham High School in Massachusetts. In December 2023, the student used an AI tool to assist with a history project. The school deemed this as academic dishonesty, resulting in disciplinary action. The student's family filed a lawsuit, arguing that the school's policies on AI use were unclear and that the AI was used merely as a research aid. 

This case underscores the need for clear guidelines on AI usage in schools to ensure fairness and transparency.

Protection of Pupil Rights Amendment (PPRA)

The PPRA is a federal law that grants parents the right to consent before their children are required to participate in surveys, analyses, or evaluations funded by the U.S. Department of Education that delve into sensitive topics. These topics include political affiliations, mental health, sexual behavior, illegal activities, and religious beliefs, among others.

With the integration of AI tools in education, it's crucial to ensure that these tech

nologies do not inadvertently collect or process information related to these protected areas without proper parental consent. For instance, if an AI-driven educational platform prompts students to share personal experiences or opinions that touch on these sensitive topics, it could potentially violate PPRA provisions.

Example:

A pertinent example is the lawsuit filed against Google in April 2025. The complaint alleges that Google collected personal data from schoolchildren without obtaining parental consent, instead relying on the permission of school personnel. This data collection involved embedding hidden tracking technologies in Chrome browsers, creating unique digital "fingerprints" for children, which allowed tracking even when privacy measures were enabled. 

Such practices raise significant concerns under laws like PPRA, emphasizing the need for explicit parental consent when collecting sensitive student information.

Title VI of the Civil Rights Act of 1964 (Title 6)

Title VI prohibits discrimination based on race, color, or national origin in any program or activity receiving federal financial assistance. This means that as educators, you must ensure that all students have equal access to educational opportunities, regardless of their background.

AI tools are increasingly being integrated into educational settings to personalize learning, automate administrative tasks, and enhance student engagement. However, it's crucial to recognize that AI systems can inadvertently perpetuate biases present in their training data. 

For instance, if an AI-powered assessment tool is trained on data that lacks diversity, it may produce results that disadvantage students from certain racial or ethnic groups, potentially violating Title VI.

Example:

A pertinent example is a lawsuit filed against Yale University, where a student alleged that the use of an AI tool, GPTZero, to detect academic dishonesty was biased against non-native English speakers. The student claimed that the AI's assessments led to discriminatory disciplinary actions, raising concerns about potential violations of Title VI.

Title IX of the Education Amendments of 1972 (Title 9)

Title IX of the Education Amendments of 1972 is a law you’re likely familiar with as an educator.

Title IX prohibits sex-based discrimination in any education program or activity receiving federal financial assistance. While it’s often associated with athletics, Title IX also covers areas such as admissions, counseling, and the treatment of students.

Now, with the integration of Artificial Intelligence (AI) in education, it's crucial to consider how these tools align with Title IX requirements. For instance, AI-driven platforms used for admissions or grading must be designed to avoid biases that could lead to sex-based discrimination. If an AI system inadvertently disadvantages students based on sex, gender identity, or sexual orientation, it could potentially violate Title IX provisions.

Example:

A real-world example highlighting these concerns involves facial recognition technology used in schools. Reports have indicated that some AI systems have misidentified students who do not conform to traditional gender norms, flagging them as security risks. Such instances underscore the importance of ensuring that AI tools are free from biases that could lead to discriminatory practices.

Children’s Online Privacy Protection Act (COPPA)

The Children’s Online Privacy Protection Act (COPPA) is a law that is more relevant than ever as AI tools become increasingly common in education. COPPA is designed to protect the personal information of children under 13 by requiring parental consent before collecting, using, or sharing their data. 

As an educator, if you're using AI-powered apps or platforms with your students, it's crucial to ensure these tools comply with COPPA regulations. In 2025, the Federal Trade Commission (FTC) updated COPPA rules to strengthen children's online privacy. Key changes include requiring parental consent before using children's data for targeted advertising or disclosing it to third parties. 

These updates mean that AI tools used in education must be transparent about data collection and usage, and schools must be vigilant in selecting compliant technologies.

Example:

A notable case highlighting the importance of COPPA compliance involves KidGeni AI. The platform settled with the Children's Advertising Review Unit (CARU) over alleged violations of the Children's Online Privacy Protection Act (COPPA). KidGeni was directed to children and collected personal information without obtaining verifiable parental consent, as required by COPPA.  

This case serves as an early and clear example for AI companies to carefully consider child-specific privacy requirements, especially when AI platforms use child-submitted data for training or other purposes.

Children’s Internet Protection Act (CIPA)

Enacted in 2000, CIPA requires schools and libraries that receive federal E-Rate funding to implement internet safety policies that include technology protection measures. These measures must block or filter access to obscene visual depictions, child pornography, or material that is harmful to minors. 

Additionally, schools must monitor the online activities of minors and educate them about appropriate online behavior, including interactions on social networking sites and in chat rooms.

With the integration of AI in education, compliance with CIPA takes on new dimensions. AI-powered content filters and monitoring tools are now being used to more effectively enforce CIPA requirements. For instance, ManagedMethods has developed an AI-driven content filter that scans keywords, images, and videos to detect and block harmful content in real-time. 

But if the rules are not followed properly, it can also have an adverse effect.

Example:

The use of AI in enforcing CIPA has also raised concerns about over-filtering and unintended censorship. A 2023 investigation by WIRED revealed that in Albuquerque Public Schools, AI-based web filters like GoGuardian and Blocksi inadvertently blocked access to educational content on topics such as LGBTQ+ identities, suicide prevention, and racial history. 

These instances highlight the need for careful calibration of AI tools to strike a balance between protecting students from harmful content and their right to access valuable educational resources.

Section 5 of the Federal Trade Commission Act (FTC Act)

Section 5 prohibits unfair or deceptive acts or practices in or affecting commerce. This means that any AI tools or platforms you use for educational purposes must not mislead users or cause harm through unfair practices. For instance, if an AI-powered educational app claims to enhance student learning outcomes but lacks evidence to support this, it could be considered deceptive under this law.

Example:

A pertinent example is the FTC's action against DoNotPay, an AI-powered legal service. The platform claimed its chatbot could provide legal advice and draft documents. However, the FTC found that the chatbot was not adequately trained and often produced ineffective documents, leading to a $193,000 fine and restrictions on its advertising practices. 

Staying informed about the legal landscape ensures that the AI tools you employ for educational purposes are both effective and compliant, safeguarding your students and your institution.

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State and Local Laws for AI in Education

State and local laws add another layer of responsibility when using AI in education, often setting stricter rules than federal regulations. As an educator, you need to stay updated on regional policies that impact student data privacy, equity, and AI tool approval. Here are some regulations for you to follow:

AI and Government Laws 

In the absence of comprehensive federal legislation, individual states have taken the initiative to regulate the use of AI in education. As of 2024, at least 45 states have introduced AI-related bills, with 31 enacting laws that cover various sectors, including education. These laws focus on transparency, accountability, and preventing algorithmic discrimination. 

• For instance, New York's proposed legislation aims to prevent AI algorithms from discriminating against protected classes, requiring independent audits of high-risk AI systems.

• A key AI case illustrating the importance of state government laws on AI regulation is the enactment and enforcement of the Colorado AI Act, the first comprehensive AI legislation in the United States, set to take effect on February 1, 2026. 

This law regulates the use of "high-risk AI systems" by both private and government entities operating in Colorado.

Additionally, 25 states have issued official guidance or policies on the use of AI in K-12 schools, providing frameworks for the ethical and effective integration of AI into classrooms.

State Student Privacy Laws

While federal laws like FERPA and COPPA set the baseline for protecting student data, many states have enacted their own laws to address the unique challenges posed by AI in educational settings. 

These laws often require schools to vet AI-powered educational technology for compliance with state-specific privacy standards, ensuring that student data is not misused or inadequately protected.

• As of 2024, over 128 state student privacy laws have been passed, focusing on issues such as data collection, sharing, and retention by AI tools used in schools.

• A notable example highlighting the complexities of AI and student privacy involves the use of AI-powered surveillance software like Gaggle in schools. While these tools aim to enhance student safety by monitoring for potential threats, they have raised significant privacy concerns. 

In 2024, reports emerged that such surveillance systems could inadvertently expose sensitive student information, leading to debates about the balance between safety and privacy.

Record Retention and Management Laws

Every U.S. state has established laws governing the retention and management of educational records. These laws dictate how long schools must retain various types of records, including attendance logs, disciplinary records, and academic transcripts.

• For instance, in Washington State, the use of AI-generated content in educational settings has prompted discussions about record retention policies. The Washington State Archives has provided guidance indicating that AI-generated records, such as chatbot interactions or logs of AI-assisted decision-making, should be treated similarly to traditional records. 

For example, suppose an AI tool is used to assist in student counseling. In that case, the records of those interactions may need to be preserved for a specified period, ensuring transparency and accountability.

State Child Privacy Laws

With the rapid advancement of AI technologies in educational settings, states are enacting laws to safeguard children's privacy. 

• For instance, Texas implemented the Securing Children Online through Parental Empowerment (SCOPE) Act, effective September 1, 2024. 

This law prohibits digital service providers from sharing, disclosing, or selling a minor's personal identifying information without parental consent, extending protections beyond the federal COPPA by covering individuals under 18.

• In October 2024, Texas sued TikTok for allegedly violating the SCOPE Act by mishandling minors' data, seeking penalties of up to $10,000 per violation.

  
  

Similarly, other states are introducing legislation requiring technology providers to protect children from potential harms on their platforms, including prohibiting the use of AI to increase children's engagement without appropriate safeguards.

State Unfair and Deceptive Practices Laws

State UDAP laws are designed to protect consumers from unfair or deceptive business practices. With the rise of AI in educational settings, these laws are being applied to ensure that AI tools used in schools are transparent, reliable, and do not mislead students, parents, or educators. 

• For instance, if an AI-powered educational app claims to enhance student learning outcomes but lacks evidence to support this, it could be considered deceptive under these laws.

• A notable example is the Federal Trade Commission's (FTC) action against Rytr LLC, an AI-powered writing assistant. The company was found to have generated fake reviews and testimonials, which users could post online, potentially deceiving consumers. 

• The FTC filed a complaint in September 2024, and by December, a final order had prohibited Rytr from engaging in similar conduct and from advertising or selling any services that generate reviews and testimonials.

In 2025, several state attorneys general, including those from California and New Jersey, issued advisories emphasizing that existing UDAP statutes apply to AI technologies. They highlighted concerns that AI systems could potentially cause discrimination, data misuse, and the dissemination of misleading information, all of which fall under the purview of UDAP enforcement.

Laws Restricting Specific Technologies

Some states have introduced legislation to limit the use of AI-generated content in assessments, ensuring that student work reflects individual effort and understanding. These laws often require schools to implement policies that detect and prevent the misuse of AI tools, such as chatbots or content generators, in completing assignments or exams.

• New York State Assembly Bill A7029 directs the incorporation of AI literacy into school curricula, including teaching students to critically evaluate AI-generated content. This legislative effort supports awareness and responsible use of AI tools in education, indirectly helping to limit misuse in assessments.

• Georgia’s Department of Education Guidance uses a “Traffic Light” system for AI use in schools, where AI is prohibited for academic dishonesty (red), allowed for content creation assistance with citation (yellow), and encouraged with proper attribution (green). This approach helps schools regulate AI-generated content to maintain academic integrity.

Such State laws and policies aim to uphold academic integrity while responsibly integrating AI technologies into education, ensuring student work authentically reflects individual learning and effort. 

Read ‘Why Schools Ban AI in Classrooms’ to know more about how schools are restricting the implementation of AI for better learning outcomes. 

Laws for Disabled Students

Laws for disabled students ensure equitable access to education by mandating accommodations and support services under frameworks like IDEA and Section 504. As you adopt AI in your classroom, it’s essential to ensure these tools are accessible and inclusive for all learners. Here is a quick overview of the laws:

Section 504 of the Rehabilitation Act (Section 504)

Section 504 prohibits discrimination based on disability in programs receiving federal funding, mandating that students with disabilities are provided with appropriate accommodations. In the case of AI in education, it's essential to ensure these technologies are accessible and do not inadvertently disadvantage students with disabilities. 

For instance, if an AI-driven learning platform isn't compatible with screen readers, it could hinder visually impaired students, potentially violating Section 504.

Example:

In November 2024, the U.S. Department of Education's Office for Civil Rights (OCR) issued guidance highlighting concerns about using AI to draft Section 504 plans. The OCR emphasized that relying solely on AI-generated plans without human oversight might fail to meet the individualized needs of students, thereby not providing a Free Appropriate Public Education (FAPE) as required under Section 504. 

Schools must ensure that any AI tools used in this context are carefully reviewed and tailored to each student's unique requirements.

Individuals with Disabilities in Education Act (IDEA)

IDEA mandates that students with disabilities receive a Free Appropriate Public Education (FAPE) tailored to their individual needs. AI can offer personalized learning experiences, assistive technologies, and innovative assessment methods that align with Individualized Education Programs (IEPs). However, educators must ensure that AI applications are accessible, unbiased, and complement the personalized approach mandated by IDEA.

Example:

In 2024, the U.S. Department of Education's Office for Civil Rights (OCR) emphasized the importance of ensuring that AI tools used in schools are accessible to students with disabilities.

The OCR highlighted that reliance on AI-generated content without proper oversight could fail to meet students' individualized needs, potentially violating IDEA's requirements for FAPE. This underscores the necessity for schools to critically assess AI tools for accessibility and alignment with each student's IEP.

The Americans with Disabilities Act (ADA)

The ADA mandates that public institutions, including schools, provide equal access to all services, programs, and activities for individuals with disabilities. This encompasses digital platforms and AI-driven educational tools. 

Example:

In April 2024, the Department of Justice (DOJ) introduced a new rule under Title II of the ADA, specifying that all digital content and applications used by public schools must adhere to Web Content Accessibility Guidelines (WCAG) 2.1 Level AA standards by April 2026. This ensures that AI-powered educational technologies are accessible to students with disabilities, facilitating inclusive learning environments.

By proactively addressing these considerations, you can harness the benefits of AI to create an inclusive educational environment that supports all learners. 

While exploring the laws, we have also explored some legal issues with AI in education, which can adversely affect the learning development of the students. Therefore, now we will explore some practices to mitigate this issue. 

Practices for Compliance and Mitigation

It’s important to use AI tools responsibly, without letting them replace your core role as a teacher. This section will help you strike a balance: using AI thoughtfully while upholding student rights, equity, and academic integrity. Here are some practices to follow:

1. Set Clear Classroom AI Guidelines

Establishing and communicating AI use rules with your students helps build a transparent environment. Let them know that it is not okay to use AI tools for brainstorming because it can impact their critical thinking and problem solving skills. A simple guide shared at the beginning of the year can make expectations clear.

Example:

Create a classroom poster or Google Doc stating prohibited AI uses, e.g., “Do not use any AI tools for assignments. For research, take help from Google Scholar and Academic Papers.”

2. Promote Human-Centered Learning

Encourage your students to build critical thinking, collaboration, and problem-solving skills that AI can't develop for them. You might have students explain their thought process behind a math problem or work in groups on a project. This keeps their learning authentic and human-led.

Example:

After completing a science project, ask students to present their reasoning and research steps in class discussions.

3. Adapt Assessments to Reduce Over-Reliance on AI

Design assignments that can’t easily be completed by AI, like oral presentations, personal reflections, or in-class activities. For example, instead of just asking for an essay on climate change, ask them to relate it to a local event or their own community. This not only prevents misuse of AI but also deepens learning through real-world connections.

Example:

Ask students to interview a local farmer about environmental changes and write a reflection on what they learned.

4. Document Student Learning Progress Independently

Maintain regular documentation of student progress through quizzes, class observations, and parent-teacher communications, not just through AI-based analytics. This ensures that even if AI tools malfunction or misreport, you have an accurate picture of student development.

Example:

Keep a weekly progress journal or checklist for each student’s participation, improvement, and needs based on classroom interaction.

AI in education is here to stay, but it's your wisdom, empathy, and guidance that truly shape student growth. By following these practical tips, you can support legal compliance, reduce risks, and ensure that students become efficient learners. 

Also read: Impacts of AI on Critical Thinking in Education

Conclusion

As you continue navigating the AI wave in education, remember, this is all about balance. Yes, AI can make your job easier and open new learning pathways, but it also comes with legal responsibilities and ethical boundaries. The laws will keep evolving, and so should your understanding of them. That’s why staying updated, asking the right questions, and collaborating with your school, tech teams, and policymakers is essential. Together, we can shape AI practices that protect student rights, support diverse learners, and still let innovation thrive in your classroom.

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