Republicans propose prohibiting US states from regulating AI for 10 years

7 hours ago 4

Republicans in US Congress are trying to bar states from being able to introduce or enforce laws that would create guardrails for artificial intelligence or automated decision-making systems for 10 years.

A provision in the proposed budgetary bill now before the House of Representatives would prohibit any state or local governing body from pursuing “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems” unless the purpose of the law is to “remove legal impediments to, or facilitate the deployment or operation of” these systems.

The provision was a last-minute addition by House Republicans to the bill just two nights before it was due to be marked up on Tuesday. The House energy and commerce committee voted to advance the reconciliation package on Wednesday morning.

The bill defines AI systems and models broadly, with anything from facial recognition systems to generative AI qualifying. The proposed law would also apply to systems that use algorithms or AI to make decisions including for hiring, housing and whether someone qualifies for public benefits.

Many of these automated decision-making systems have recently come under fire. The deregulatory proposal comes on the heels of a lawsuit filed by several state attorneys general against the property management software RealPage, which the lawsuit alleges colluded with landlords to raise rents based on the company’s algorithmic recommendations. Another company, SafeRent, recently settled a class-action lawsuit filed by Black and Hispanic renters who say they were denied apartments based on an opaque score the company gave them.

Some states have already inked laws that would attempt to establish safeguards around these systems. New York, for instance, passed a law that required automated hiring systems to undergo bias assessments. California has passed several laws regulating automated decision-making, including one that requires healthcare providers to notify patients when they send communications using generative AI. These laws may become unenforceable if the reconciliation bill passes.

“This bill is a sweeping and reckless attempt to shield some of the largest and most powerful corporations in the world – from big tech monopolies to RealPage, UnitedHealth Group and others – from any sort of accountability,” said Lee Hepner, senior legal counsel at the American Economic Liberties Project.

The new language is in line with Trump administration actions that aim to remove any perceived impediments to AI development. Upon taking office, Donald Trump immediately revoked a Biden administration executive order that created safety guardrails for the deployment and development of AI. Silicon Valley has long held that any regulation stifles innovation, and several prominent members of the tech industry either joined or backed the US president’s campaign, leading the administration to echo the same sentiment.

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“State lawmakers across the country are stepping up with real solutions to real harms – this bill is a pre-emptive strike to shut those down before they gain more ground,” Hepner said.

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