President Donald Trump’s extensive legislative proposal, dubbed the ‘Big Beautiful Bill,’ includes a provision that could significantly impact the growing movement to regulate artificial intelligence at the state level across the United States. This element, tucked within a section allocating $500 million over the next decade for government AI modernization, proposes a ban on state-led AI regulations.
Blocking State AI Efforts
The proposed ban is far-reaching. It aims not only to prevent states from enacting new regulations concerning AI and automation technologies but also seeks to block dozens of states from enforcing AI regulations and oversight structures they already have in place. This move comes as states have increasingly taken the lead in attempting to govern the rapidly evolving AI landscape.
Bill Advances to Senate
The 1,000-plus-page bill, primarily focused on tax and policy matters, narrowly passed the House of Representatives on May 22. It now moves to the Senate, where Republicans aim for passage by the end of July to avert a potential debt default. However, the bill faces challenges within the GOP’s slim majority, with points of contention including Medicaid, tax cuts, and government spending. The proposed AI regulation ban has also emerged as a point of friction for some lawmakers.
AI Regulation: A Patchwork
The current state of AI regulation in the U.S. is often described as a “wild west.” With no centralized federal oversight, states have developed a disparate patchwork of legislation. The rapid adoption of AI by both public and private entities has outpaced the government’s ability to implement comprehensive laws and frameworks to prevent potential misuse.
Differing Federal Approaches
Under the Biden administration, a blueprint for an AI Bill of Rights was introduced, encouraging state agencies to evaluate AI uses, risks, and employee training. This initiative is now defunct. The Trump-led framework, in contrast, prioritizes accelerating AI innovation, aligning with arguments from the tech industry that regulation could hinder progress and reduce U.S. competitiveness.
State Concerns and Advocacy
Many existing state regulations target specific AI harms like scams, deepfakes, disinformation, and increasing focus on potential biases and discrimination in areas such as lending, hiring, and policing. Advocacy groups, like the California Initiative for Technology and Democracy (CITED), warn of negative impacts, including the potential for AI use in developing dangerous weapons, increasing surveillance, and magnifying existing biases. They argue regulation is necessary in certain areas.
Opposition from Some GOP
Despite general Republican support for the provision in a House subcommittee hearing, some prominent GOP senators have voiced opposition. Senators Josh Hawley (Missouri) and Marsha Blackburn (Tennessee) have pushed back. Senator Blackburn stated the need for state protections in Tennessee, while Senator Hawley argued for federalism, allowing states to experiment with different regulatory approaches. Both senators indicated a belief in the need for sensible AI oversight.
Debate Over Pace and Innovation
The core argument against state-level regulation, often voiced by the tech industry and groups like the U.S. Chamber of Commerce, is that it could stifle innovation. Sean Heather, Senior Vice President of the U.S. Chamber of Commerce, argued that states are moving too quickly, advocating for a federal “time out” to discuss regulation nationally and avoid a “domestic patchwork.”
States Act Amid Uncertainty
Despite the potential federal ban, states have been active. According to the National Conference of State Legislatures, at least 45 states, plus territories, introduced AI bills in the 2024 legislative session. Over 30 states and territories passed legislation, with Utah, Maryland, and Florida enacting regulatory and oversight acts. Numerous bills from last year remain pending, and new proposals are emerging for 2025, highlighting the ongoing state-level push for AI governance.
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Information source: usatoday.com
