On AI and Trump's "One Big Beautiful Bill Act"

The proposed U.S. "One Big Beautiful Bill Act" includes a provision that for 10 years U.S. states could not regulate artificial intelligence models, artificial intelligence systems, or automated decision systems ...’ Note: This text was included in a 1,000 page budget related document.
 

In response, 260 state legislators across all states, sent a letter to the U.S. House of Representatives and U.S. Senate that said:

• “The proposed 10-year freeze of state and local regulation of AI and automated decision systems would cut short democratic discussion of AI policy ... ”

• “States ... must maintain the flexibility to respond to new digital concerns.”

• “In an increasingly fraught digital environment, young people are facing new threats online, seniors are targeted by the emergence of AI-generated scams, and workers and creators face new challenges in an AI-integrated economy.”

• “A federal moratorium on AI policy ... impacts more than just AI development and leaves constituents across the country vulnerable to harm.”

Note: 20 state attorneys general and over 140 other organizations have shared concerns about the provision in the "Beautiful Bill."
 

OUR TAKE

• Some U.S. states have responded more quickly to emerging AI dynamics and addressed local impacts and concerns.

• The bipartisan opposition highlights that AI's varied effects require tailored responses that a uniform federal approach might constrain.

• A 10 year moratorium preventing state action on AI's dynamics seems counterproductive.

• However, inconsistent regulations across multiple states could burden AI developers and hinder innovation, while a coordinated federal framework could provide greater consistency.