POLITICO Tech The ‘big, beautiful bill' to ban state AI laws
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May 22, 2025 In this discussion, Sam Hammond, Chief Economist at the Foundation for American Innovation, dives into the controversial proposal to ban state-level AI regulations for a decade. He shares insights on how this moratorium could reshape the AI landscape amid a global tech race, especially against competitors like China. The conversation critiques the existing regulatory challenges and highlights the urgent need for a unified federal framework to tackle AI's rapid evolution while balancing industry interests and safety concerns.
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Challenges of a 10-Year Moratorium
- The AI regulation moratorium blocks states from acting, which may stifle needed innovation and localized experimentation.
- AI's rapid evolution and cross-border nature complicate rigid, long-term regulatory frameworks.
Risks of Limiting State Regulation
- Quickly evolving AI models create unpredictable regulatory needs that current laws don't yet address.
- Removing state-level action could limit public input and slow response to emerging AI risks.
Legacy Laws Hinder AI Adoption
- The major bottleneck for AI adoption is legacy regulation from various sectors rather than AI-specific laws.
- Updating outdated rules might be more critical to fostering AI innovation than imposing new AI laws.