US AI Regulation: Future Outlook

The Future of AI Regulation

Experts have been considering the advantages and disadvantages of regulating artificial intelligence. Recently, the U.S. House of Representatives passed H.R. 1, known as the “One Big Beautiful Bill Act,” along party lines. If enacted, H.R.1 would halt any state or local regulations affecting AI models or research for a decade.

AI tools, such as chatbots and video-generating software, have become widely accepted by consumers. Around 40 percent of Americans use AI tools on a daily basis. These tools are continuously improving, making them more usable for both average consumers and corporate users. It is suggested that the continued use of AI could lead to significant economic growth.

Adjustments and Concerns

Unlocking the benefits of AI requires social and economic adjustments in employment, cyber-security, and information consumption. It is estimated that AI implementation could displace or transform approximately 40 percent of jobs. Without safety nets or reskilling programs, some analysts warn that this displacement could worsen existing inequalities, particularly for low-income workers and communities of color, as well as between more and less developed nations.

Given the potential for economic displacement, national and state governments, human rights groups, and labor unions support greater regulatory oversight of the AI sector. The infrastructure needed to support AI tools consumes as much electricity as the eleventh-largest national market. Continued growth in AI necessitates greater electricity generation and storage, creating potential environmental impacts. AI development also consumes large amounts of water for cooling, raising sustainability concerns in water-scarce regions.

Biases and Regulations

Industry insiders and critics note that broad training parameters and flawed data can cause models to embed stereotypes and mimic human biases. These biases cause critics to call for regulation of AI in policing, national security, and other policy contexts. Polling shows that American voters want more regulation of AI companies, including limiting training data, imposing environmental taxes, and banning AI in some sectors.

There is little consensus among academics, industry insiders, and legislators as to whether or how the AI sector should be regulated. This week’s Saturday Seminar discusses the need for AI regulation and the benefits and drawbacks of centralized federal oversight. The Saturday Seminar aims to put into written form the kind of content that would be conveyed in a live seminar involving regulatory experts. Each week, The Regulatory Review publishes a brief overview of a selected regulatory topic and then distills recent research and scholarly writing on that topic. President Trump can preempt state regulation of artificial intelligence and autonomous vehicles. Scholars discuss the quasi-regulatory role of courts as AI transforms litigation. Data donors can empower the use of artificial intelligence for socially desirable outcomes.