AI regulation fight heats up over US federal moratorium
Ambiguity in AI bill could nullify vital consumer laws.
The US House of Representatives has passed a budget bill containing a 10-year moratorium on the enforcement of state-level artificial intelligence laws. With broad bipartisan concern already surfacing, the Senate faces mounting pressure to revise or scrap the provision entirely.
While the provision claims to exclude generally applicable legislation, experts warn its vague language could override a wide array of consumer protections and privacy rules in the US. The moratorium’s scope, targeting AI-specific regulations, has triggered alarm among concerned groups.
Critics argue the measure may hinder states from addressing real-world harms posed by AI technologies, such as deepfakes, discriminatory algorithms, and unauthorised data use.
Existing and proposed state laws, ranging from transparency requirements in hiring and healthcare to protections for artists and mental health app users, may be invalidated under the moratorium.
Several experts noted that states have often acted more swiftly than the federal government in confronting emerging tech risks.
Supporters contend the moratorium is necessary to prevent a fragmented regulatory landscape that could stifle innovation and disrupt interstate commerce. However, analysts point out that general consumer laws might also be jeopardised due to the bill’s ambiguous definitions and legal structure.
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