A clause that would have prohibited state legislation governing artificial intelligence was taken out of President Trump’s megabill by the Senate early on Tuesday. The action is a setback to tech firms and White House officials who worry that a patchwork of state laws could impede AI advancement.
The details
The Senate has been considering AI moratorium language approved by the House earlier in the megabill process. House Republicans suggested a 10-year ban on state AI restrictions, wanting to avoid a patchwork of various policies throughout the country. The moratorium would be required for states to receive federal funds for technological infrastructure projects.
Many members believed that the initial House wording was very broad and would preclude states from regulating in other areas, such as child online security.
Going into the weekend, it was unclear if Senate Republicans would get enough votes to include the moratorium in their version of Trump’s megabill. However, a movement sponsored by Sen. Ted Cruz (R., Texas) received a boost Sunday when Sen. Marsha Blackburn’s (R., Tenn.) office signaled her support for draft wording that reduced the 10-year period to five. It would have allowed states to enact their own rules on child internet safety or safeguarding a person’s name, image, and likeness.
On Monday, Blackburn pulled out of the support. “This clause might enable big tech to keep taking advantage of children, artists, and conservatives,” she added in a statement.
She decided to reject the moratorium after weeks of pressure from politicians like Rep. Marjorie Taylor Greene (R., Ga.) and state authorities like Gov. Sarah Huckabee Sanders of Arkansas.
The situation
The whole economy, including the tech sector, is looming with uncertainty around the regulation of AI. Many legislators are finding it difficult to keep up with the quickly changing technology, and more than 1,000 AI legislation have been filed at the state level. Many are concerned about AI’s effects on privacy and employment losses.
A moratorium’s opponents contend that it would only take effect if Congress passed a federal framework, which is unlikely.
As a result of a moratorium, several tech CEOs fear that affluent Democratic states may reject federal money and instead enact their own AI legislation.
What comes next?
Blackburn’s change was a setback to Cruz, the Commerce Committee chairman. Early Tuesday morning, he declared on the Senate floor that outside interest groups had blown the deal apart and that Trump had referred to his idea as fantastic.
“In this body, your word is your currency,” Blackburn added, observing from a few seats behind Cruz.
After that, Blackburn compelled a vote to remove the moratorium from the measure, which was approved 99-1. Cruz stated that he would support lifting the prohibition since many of his colleagues were unwilling to vote on the matter, providing further cover for other Republicans to follow suit. Only one senator, Sen. Thom Tillis (R., N.C.), favored preserving it.
