AI regulation ban meets opposition from state attorneys general over risks to US consumers

Bipartisan Attorneys General Warn of Consumer Risks

A Republican-led proposal aiming to halt individual US states from regulating artificial intelligence for the next decade is encountering strong opposition from attorneys general across the political spectrum. The controversial measure, embedded in President Donald Trump's latest tax cut bill, would effectively override a wave of new AI regulations passed in numerous states over recent years, according to a Reuters report.

States Defend Their Right to Regulate AI

A group of 40 state attorneys general—including Republicans from Ohio, Tennessee, Arkansas, Utah, and Virginia as well as Democrats—formally urged Congress to reject the proposed moratorium. The coalition’s statement comes as the US House of Representatives’ budget committee prepares for a critical hearing on the issue.
“Imposing a broad moratorium on all state action, while Congress fails to act in this area is irresponsible and deprives consumers of reasonable protections,” stated the group of attorneys general.

California Leads the Charge, Citing Big Tech Presence

California Attorney General Rob Bonta, whose state hosts major artificial intelligence firms such as OpenAI, Alphabet, Meta Platforms, and Anthropic, was among the Democrats opposing the federal preemption.
“I strongly oppose any effort to block states from developing and enforcing common-sense regulation; states must be able to protect their residents by responding to emerging and evolving AI technology,” Bonta said.
California recently enacted several new laws restricting certain uses of AI, showcasing the type of regulations that could be wiped out by the federal proposal.

What the Ban Would Mean

  • States would lose the authority to enact or enforce AI laws and regulations for a decade.
  • Existing state-level protections around high-risk AI applications could be suspended.
  • Federal inaction would leave a regulatory vacuum, raising concerns about oversight for emerging AI technology.

Broader Implications

The measure, if passed, would preempt dozens of new AI-focused regulations on the books in multiple states. Critics argue this deprives consumers and communities of protections tailored to local concerns, especially as AI technology like ChatGPT and Anthropic’s generative tools rapidly mature. With bipartisan opposition growing and significant public attention on AI safety and transparency, the debate underscores the challenge US lawmakers face in balancing innovation with adequate consumer protections. The outcome of this legislative battle could shape the pace and scope of AI oversight for years to come.

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