The controversial state ban on AI regulation buried in President Donald Trump’s massive bill has already been watered down. The original proposal called for a 10-year moratorium on state regulations for the emerging technology. The newest version of the bill now calls for a five-year ban.
Originally, the bill called for an all-out ban on state regulation on AI. It was previously rewritten by Texas Sen. Ted Cruz to give states the option to continue regulation. However, states that continue to do so will lose access to $500 million in funding that’s been reserved for AI projects. The newest version of the bill also includes an exception, allowing states to continue to enact AI-related laws related to child safety and protecting individuals’ names and likenesses, according to a Wall Street Journal report.
The idea behind the proposal from Cruz and Tennessee Sen. Marsha Blackburn is that by limiting AI regulation to a federal level, that will help this emerging technology grow rather than potentially stifle innovation. The measure has been supported by tech companies as well as White House officials. However, certain members of the GOP have opposed the measure, including Missouri Sen. Josh Hawley and Georgia Rep. Marjorie Taylor Greene. When she opposed the first iteration of the bill calling for a 10-year ban, Greene stated the measure was a violation of states’ rights.
On the tech side, some executives are reportedly worried that wealthier Democratic states would turn down the AI federal funding and pass their own laws on the technology. Since many tech companies are part of the Democratic California, whatever AI measures the state takes will likely have an outsized effect on its future.
So far, there have been over 1,000 bills about AI proposed on the state level. Most of the concerns stem from worries about privacy as well as protecting potential job losses. The self-imposed deadline for Senate Republicans to pass the megabill is Friday.
Business Insider was the first to report this story.
