Bipartisan Coalition Of State AGs Oppose Ten-Year AI Regulation Ban

A coalition of 40 State AGs[1] sent a letter to Congressional leaders opposing a proposed ten-year ban on states enforcing any state law or regulation addressing AI. The ban was included by the House Energy and Commerce Committee as an amendment to the budget reconciliation bill. The State AGs argue that the ten-year moratorium “would be sweeping and wholly destructive of reasonable state efforts to prevent known harms associated with AI.” Specifically, they argue that the ban would eradicate any state-level framework already in place, without any regulatory scheme to replace or supplement such framework. The State AGs allege that the bill would directly harm consumers and prevent State AGs from “fulfilling their mandate to protect consumers.”

The letter also outlines legislation passed by states addressing a number of harms and risks associated with AI. The letter highlights those states that have passed a series of laws designed to protect against (1) AI generated explicit material; (2) deep fakes; (3) spam phone calls and texts; (4) AI disclosure requirements; and (5) identity protection for AI generated content. The State AGs note that these laws and regulations have been developed for years, through careful consideration and input from consumers, industry, and advocates. The State AGs also warn that unforeseeable risks associated with the technology are likely to arise in the coming years. Finally, the State AGs stress that, in the face of Congressional inaction, states are likely to be the forum for addressing the real-world harms of AI.

The proposed bill faces further procedural hurdles before officially becoming a part of the budget bill and then it remains unclear whether the proposed moratorium ultimately will be enacted. And, even if enacted, it probably would be subject to a number of constitutional challenges. But, the effort by the federal government to limit the role of the states with regard to AI reflects a desire to allow companies to accelerate their use of AI without having to navigate a patchwork of different state regulations. Some lawmakers have suggested the moratorium would give Congress time and space to craft a federal framework to regulate AI. In the meantime, however, businesses should continue complying with state regulations and expect State AG enforcement in this area to continue to be a priority.

[1] The letter was signed by the Attorneys General of California, Colorado, Tennessee, New Hampshire, Vermont, American Samoa, Arizona, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, U.S. Virgin Islands, Virginia, Washington, and Wisconsin.