The new Senate budget proposal includes a moratorium on state AI laws, which has raised concerns among lawmakers and advocacy groups about the potential loss of consumer protections. Proponents argue it would prevent conflicting regulations for AI companies, while critics warn it could exempt Big Tech from state oversight indefinitely. Key figures like Rep. Ro Khanna express that this provision risks allowing unregulated AI development, while ambiguities in the moratorium's language could result in extensive impacts beyond AI, challenging efforts to protect public interests.
"What this moratorium does is prevent every state in the country from having basic regulations to protect workers and to protect consumers," Rep. Ro Khanna (D-CA) explains. He warns that as written, the language included in the House-passed budget reconciliation package could restrict state laws that attempt to regulate social media companies, prevent algorithmic rent discrimination, or limit AI deepfakes that could mislead consumers and voters.
"The ban's language on automated decision making is so broad that we really can't be 100 percent certain which state laws it could touch," Jonathan Walter, senior policy advisor, states. He emphasizes the ambiguity intentionality behind the moratorium's wording.
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