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New Research: Broad Range of AI Laws Preempted Under Federal AI Law Ban

Picture of Chris MacKenzie

Chris MacKenzie

New report examines scope of federal preemption in the reconciliation bill

On Friday, Americans for Responsible Innovation released new research examining the scope of state legislation that would be preempted under a 10-year AI law ban included in the House and Senate versions of the budget and reconciliation bill. The report finds a medium-to-high risk of preemption for state laws on children’s online safety, consumer protections, transparency and accountability measures, and generative AI harms. The new research closely examines several case studies of state laws that may be impacted by the federal AI law moratorium, including recent legislation from Utah, Texas, Illinois, California, and other states across the country.

Read the full report:
Federal Preemption of AI Regulation: What State Legislation Is at Risk?

“The federal AI law moratorium would have serious unintended consequences for consumers, businesses, and states across the country,” said ARI President Brad Carson. “We’re looking at a nationwide freeze on a range of children’s online safety measures, consumer protections, and other laws put in place to support and protect the public in the AI era. It’s obvious why so many state lawmakers, attorneys general, and voters have spoken out against the AI ban: its impact would reach into nearly every area of tech policymaking for the next decade.”

The provision included in the budget and reconciliation bill would place a decade-long moratorium on the enforcement of “any law or regulation limiting, restriction, or otherwise regulating artificial intelligence models, artificial intelligence systems, or automated decision systems,” with a handful of exemptions. The Senate’s latest version of the preemption measure makes broadband funding contingent on compliance. The measure is likely to face challenges in the Senate where a procedural rule known as the Byrd Rule limits the inclusion of extraneous provisions in reconciliation bills.

Today’s research follows on a letter from 260 state lawmakers from all 50 states earlier this week, who urged Congress to oppose the AI law moratorium in the reconciliation bill. Late last month, 40 state attorneys sent a similar letter to Congress urging opposition to the preemption measure.

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Americans for Responsible Innovation (ARI) is a nonprofit organization dedicated to policy advocacy in the public interest, focused on emerging technologies like artificial intelligence (AI). Learn more at www.ari.us.

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