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Interesting article on US AI regulation.

https://www.bloomberg.com/professional/insights/artificial-intelligence/us-regulation-of-artificial-intelligence/

Key Takeaways:

• State vs. Federal Regulation

  • Without federal preemption, states could push forward aggressive AI regulations.

  • California nearly passed a major AI bill in 2024, but Governor Gavin Newsom withheld his signature.

• Light-Touch Federal Approach

  • Senator John Thune's 2023 AI bill emphasized transparency rather than heavy regulation.

  • Proposals included:

    • Internet platforms reporting AI use.

    • Annual reports for "high-impact" AI systems.

    • Certification for "critical-impact" AI systems.

    • Industry advisory committee guiding Commerce Department standards.

  • Congress is unlikely to adopt this unless a major AI risk incident triggers action.

• Dedicated Federal AI Agency Unlikely

  • In 2023, lawmakers showed interest in a centralized AI regulatory body; by 2025, support had evaporated.

  • A new agency could bring expertise but risks market disruption.

  • Politically infeasible in a Republican-controlled Congress.

  • Current preference: industry sets standards → government (e.g., NIST) adopts them.

• Old Laws, New Tech

  • AI will be regulated mostly under existing federal and sector-specific laws.

  • FTC expected to monitor for unfair/deceptive practices.

  • AI likely to flourish under this relatively "hands-off" model.

  • Unlike social media platforms, AI companies won't enjoy broad legal shields like Section 230, leaving them exposed to lawsuits if harms occur.

Feel free to add in this sub further comments or other articles that complement the previous article.

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Carlos Salas
Portfolio Manager & Freelance Investment Research Consultant
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