AI Regulation: Congress’s Alarming Push to Block State AI Laws for Five Years

Key Points

1. Senator Ted Cruz and others are pushing to include a provision in a GOP budget bill that would prohibit state and local AI regulations for five years, with a Senate vote scheduled ahead of July 4.

2. Proponents, including tech leaders like Sam Altman and Marc Andreessen, argue that a patchwork of state laws would hinder AI innovation and make it difficult for companies to operate.

3. Critics, including Democrats, consumer rights advocates, and some Republicans, warn the moratorium would undermine consumer protections and block states from addressing AI harms, such as those targeted by California's AB 2013 and Tennessee's ELVIS Act.

4. The proposal ties compliance to federal funding, with revisions linking it to a $500 million broadband program, raising concerns about states being forced to choose between funding and AI regulation.

5. Public opinion, as per a Pew Research survey, favors more AI regulation, with 60% of U.S. adults and 56% of AI experts expressing greater concern about under-regulation than over-regulation.