POLITICO Tech

The ‘big, beautiful bill' to ban state AI laws

28 snips
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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INSIGHT

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.
INSIGHT

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.
INSIGHT

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  • Updating outdated rules might be more critical to fostering AI innovation than imposing new AI laws.
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