Decade-Long Immunity for Big Tech: The proposed bill grants a 10-year immunity from state-level AI regulations, allowing corporations to operate without oversight.
Limited Oversight and Accountability: Without regulations, accountability for AI systems diminishes, risking public safety and ethical standards.
Entrenchment of Big Tech: The absence of competition from smaller players will further entrench major companies like OpenAI and Google in the AI sector.
Erosion of Public Trust: Lack of transparency in AI operations is likely to diminish public trust, as concerns about bias and misuse grow.
Threat to U.S. Global Leadership: By avoiding regulatory frameworks, the U.S. risks falling behind in ethical AI development compared to regions like the EU, potentially isolating itself from international collaborations.
Big tech vendors seek relief from varying state laws on AI and data privacy, with Trump’s One Big Beautiful Bill Act proposing a 10-year moratorium on state AI laws.
The U.S. House passed a tax and domestic policy bill by a narrow margin, which includes a provision to halt state enforcement of AI regulations.
Despite concerns over a chaotic patchwork of laws, progress on federal data privacy legislation remains slow, with previous attempts failing to pass.
Texas has secured substantial settlements against Google and Meta for violating user data privacy, signaling a strict state approach to tech regulation.
Industry experts warn that a lack of cohesive federal regulations may hinder accountability for AI vendors, emphasizing the need for appropriate legal frameworks.