A proposal buried deep in the “Big Beautiful Bill” that would block states from regulating artificial intelligence is emerging as a point of contention as the bill undergoes Senate scrutiny.
The bill allocates $500 million for the next 10 years to modernize government IT systems using AI, while also blocking states from adopting or enforcing AI regulations, according to USA Today.
Republican Republican Senators Josh Hawley of Missouri and Marsha Blackburn of Tennessee have posed questions about a ban on state initiatives.
“We certainly know that in Tennessee, we need those protections,” Blackburn said while discussing a bill that would protect citizens from AI impersonations. “And until we pass something that is federally preemptive, we can’t call for a moratorium.”
Hawley said a blanket ban on regulations might not be what the nation needs.
“I would think that, just as a matter of federalism, we’d want states to be able to try out different regimes that they think will work for their state,” Hawley said. “And I think in general, on AI, I do think we need some sensible oversight that will protect people’s liberties.”
Sean Heather, Senior Vice President of the U.S. Chamber of Commerce, said bans that emerge while AI remains new might be too heavy-handed or too soon.
“We should stop international patchworks and domestic patchworks in AI regulation,” Heather said. “We should not be in a rush to regulate. We need to get it right, therefore taking a time out to discuss it at a federal level is important to be able to support a moratorium.”
Republican Rep. Jay Obernolte of California said a towering babble of regulations will not serve the public interest.
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“Right now, there are over a thousand bills on the topic of AI regulation pending in state legislatures across the country,” he said, according to The Hill.
“Imagine how difficult it would be for a federal agency that operates in all 50 states to have to navigate this labyrinth of regulation when we potentially have 50 different states going 50 different directions on the topic of AI regulation,” he said. “This is exactly the same circumstances that we are putting private industry in.”
Obernolte said recommendations of a House Task Force on AI should be put in place while putting state action on hold.
“Congress needs to get its act together and codify some of the things in this report,” he said, according to The Hill. “A moratorium is appropriate and then that will allow us a little bit of runway to get our job done and regulate.”
Democratic Rep. Doris Matsui of California said telling states to wait was a “slap in the face to American consumers.”
“The U.S. should be leading in the global race for AI dominance,” she said. “If we don’t lead, others will. However, we can’t shoot ourselves in the foot by stopping the good work that states have done and will continue to do.”
Democratic Rep. Scott Peters of California said a moratorium without federal regulations in place is wrong.
“We don’t have a standard that we’re offering, and I think the moratorium is too long. We should be able to do it in a much shorter period of time,” Peters said.
Microsoft President Brad Smith said a light regulatory touch will best serve innovation.
“There’s a lot of details that need to be hammered out, but giving the federal government the ability to lead, especially in the areas around product safety and pre-release reviews and the like, would help this industry grow,” Smith said.
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