- House Republicans introduced a tax bill clause banning states from regulating artificial intelligence (AI) for 10 years, surprising tech watchers and angering state governments.
- The provision aims to provide uniformity for the AI industry, which advocates for minimal regulation as technology advances, but may struggle to pass in the Senate due to procedural challenges.
- Senators from both parties express interest in AI regulation; however, meaningful progress on related legislation has been stalled in the divided Congress.
- Critics argue the clause represents federal overreach and limits state-level protections, while attorneys general from various states oppose the bill, emphasizing the need for local solutions.
- Industry leaders, including OpenAI’s CEO, suggest a federal approach to regulation but stress the importance of a "light touch" framework to foster innovation without burdensome regulations.