Stopping States From Passing AI Laws for the Next Decade is a Terrible Idea

This week, the U.S. House Energy and Commerce Committee moved forward with a proposal in its budget reconciliation bill to impose a ten-year preemption of state AI regulation—essentially saying only Congress, not state legislatures, can place safeguards on AI for the next decade.

We strongly oppose this. We’ve talked before about why federal preemption of stronger state privacy laws hurts everyone. Many of the same arguments apply here. For one, this would override existing state laws enacted to mitigate against emerging harms from AI use. It would also keep states, which have been more responsive on AI regulatory issues, from reacting to emerging problems.

Finally, it risks freezing any regulation on the issue for the next decade—a considerable problem given the pace at which companies are developing the technology. Congress does not react quickly and, particularly when addressing harms from emerging technologies, has been far slower to act than states. Or, as a number of state lawmakers who are leading on tech policy issues from across the country said in a recent joint open letter, “If Washington wants to pass a comprehensive privacy or AI law with teeth, more power to them, but we all know this is unlikely.”

Even if Congress does nothing on AI for the next ten years, this would still prevent states from stepping into the breach.

Even if Congress does nothing on AI for the next ten years, this would still prevent states from stepping into the breach. Given how different the AI industry looks now from how it looked just three years ago, it’s hard to even conceptualize how different it may look in ten years. State lawmakers must be able to react to emerging issues.

Many state AI proposals struggle to find the right balance between innovation and speech, on the one hand, and consumer protection and equal opportunity, on the other. EFF supports some bills to regulate AI and opposes others. But stopping states from acting at all puts a heavy thumb on the scale in favor of companies.

Stopping states will stop progress. As the big technology companies have done (and continue to do) with privacy legislation, AI companies are currently going all out to slow or roll back legal protections in states.

For example, Colorado passed a broad bill on AI protections last year. While far from perfect, the bill set down basic requirements to give people visibility into how companies use AI to make consequential decisions about them. This year, several AI companies lobbied to delay and weaken the bill. Meanwhile, POLITICO recently reported that this push in Washington, D.C. is in direct response to proposed California rules.

We oppose the AI preemption language in the reconciliation bill and urge Congress not to move forward with this damaging proposal.