

AISN #58: Senate Removes State AI Regulation Moratorium
4 snips Jul 3, 2025
The Senate recently lifted a moratorium that would have restricted states from regulating AI, overcoming significant political hurdles. Additionally, a clash among federal judges has emerged regarding whether using copyrighted materials to train AI qualifies as fair use. These developments signal a pivotal moment in the ongoing debate over AI policy and copyright laws.
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Senate Removes State AI Moratorium
- The Senate removed a provision that would restrict states from regulating AI by tying it to federal broadband funds.
- The moratorium was weakened and ultimately removed with a 99-1 vote due to political pushback and procedural issues.
Judges Split on AI Copyright Fair Use
- Two federal judges ruled differently on whether training AI on copyrighted books is fair use, creating legal uncertainty.
- The main disagreement lies in whether indirect market effects of AI-generated content count under copyright law.
Judge Alsop Supports Transformative Use
- Judge Alsop ruled that using copyrighted books to train AI is highly transformative and thus fair use.
- He distinguished lawful digitization of owned books from piracy, emphasizing guardrails against exact copying.