Home » States Freed to Regulate AI as Senate Kills Federal Ban

States Freed to Regulate AI as Senate Kills Federal Ban

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A federal moratorium on state artificial intelligence regulation, previously included in President Trump’s sweeping tax and spending bill, has been overwhelmingly struck down by the U.S. Senate. This 99-1 vote during a “vote-a-rama” session liberates states to pursue their own AI policies, signaling a shift towards localized control over the technology.

Republican Senator Marsha Blackburn spearheaded the amendment that successfully removed the controversial 10-year ban. Her efforts highlight a growing sentiment in Congress that states should not be hindered in their ability to respond to the unique challenges and opportunities presented by AI, especially in areas where federal legislation is lacking.

The Senate’s earlier iteration of the bill had a softer impact, simply making states with AI regulations ineligible for a new $500 million fund for AI infrastructure. However, the complete removal of the ban is a more assertive move, ensuring that states face no federal obstacles, financial or otherwise, when considering AI-related legislation.

This outcome differs from the preferences of major AI companies like Google and OpenAI, who have advocated for a consistent federal regulatory framework to prevent fragmentation and potential hindrances to innovation. Senator Blackburn, however, firmly asserted the necessity of state-level protections, stating, “Until Congress passes federally preemptive legislation like the Kids Online Safety Act and an online privacy framework, we can’t block states from making laws that protect their citizens.”

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