Gladstone A.I. co-founders Edouard and Jeremie Harris recently discussed the crucial role artificial intelligence (AI) will play in national security on ‘The Will Cain Show’. As AI begins to transform American society, Congress is contemplating measures that could prevent states from implementing important safeguards.
Embedded in the new House reconciliation package is Section 43201, which aims to preempt state and local laws regarding “artificial intelligence models” and “automated decision systems” for a decade. The Senate has proposed a similar moratorium that could restrict federal funding for states that fail to comply. Advocates of the moratorium argue that a cohesive federal approach is necessary to maintain U.S. competitiveness in AI.
However, this sweeping measure endangers state-level initiatives designed to curb the excesses of Big Tech without federal replacements. It could undermine the constitutional responsibilities of state legislatures to safeguard the rights and interests of American citizens, particularly children and working families. States like Texas, Florida, and Utah have taken proactive steps to protect online children’s safety, data privacy, and address platform censorship.
Section 43201 puts many existing laws at risk by broadly defining “automated decision systems”, which could include social media algorithms. Numerous states have enacted laws requiring age verification for minors on these platforms, and these laws may be categorized under the broad definition, jeopardizing their enforcement. Moreover, the moratorium could obstruct state privacy laws that limit algorithmic practices to foresee consumer behavior and characteristics.
This expansive approach not only endangers state autonomy but could also hinder the promise of AI in enhancing productivity and wages, as highlighted by Vice President J.D. Vance at the Paris AI Summit. To secure a beneficial AI future, state-level actions are vital.
Innovative legislation, such as Tennessee’s ELVIS Act, which protects artists from unauthorized voice cloning, demonstrates the essential role states play in navigating emerging technologies. Collaboration between states fosters experimentation and adaptation of regulatory frameworks to meet AI’s evolving challenges, essential for protecting communities and jobs. As 40 state attorneys general from both parties have expressed concerns over Section 43201, calling for careful regulation rather than broad preemption, it is evident that state legislative freedom remains essential for securing the opportunities AI presents for the middle class and American innovation.
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