AG James Leads 36 States to Block Federal AI Regulation Limits

UPDATE: New York Attorney General Letitia James is spearheading an urgent fight against federal restrictions on state-level artificial intelligence regulations. Earlier today, James led a coalition of 36 attorneys general in a powerful push urging Congress to reject provisions in the upcoming National Defense Authorization Act that would prevent states from enforcing AI laws.

This action comes as congressional leaders are contemplating amendments that could undermine state authority over AI governance. Such federal intervention has raised alarms, with James asserting that blocking states from regulating AI poses significant safety and security risks. “Every state should be able to enact and enforce its own AI regulations to protect its residents,” she emphasized, highlighting the dangers posed by AI chatbots and deepfake technologies.

RIGHT NOW: The urgency of this matter cannot be overstated. James points to alarming instances where certain AI applications have negatively impacted children’s mental health, coupled with rising scams facilitated by AI-generated content. She insists that state governments are uniquely positioned to address these pressing issues, arguing against what she describes as “Big Tech’s efforts” to stifle local regulatory power.

In New York, the state is already taking proactive measures. New regulations implemented this month require AI companion operators to have safety features in place, including protocols for when users exhibit signs of suicidal ideation. Additionally, a bill is set to reach Governor Kathy Hochul’s desk, mandating large AI firms to disclose safety protocols and notify users when AI models behave dangerously.

The Responsible AI Safety and Education (RAISE) Act aims to hold developers accountable for public safety threats and ban using AI for bioweapon creation. As federal uncertainty looms, New York continues to walk the fine line between ensuring public safety while fostering economic development in the tech sector.

Meanwhile, voices from the business community, such as Justin Wilcox, executive director of Upstate United, are calling for a “smart” approach to AI regulation. Wilcox underscores the need for investments in the energy grid and a diversified energy strategy to support sustainable innovation. He warned that current climate laws could hinder progress, stating, “Reliability margins are diminishing because we’re losing sources of energy quicker than we’re replacing them.”

On the legislative front, other bills are also making their way through the New York legislature, aiming to impose limits and reporting requirements on energy consumption by data centers.

Economist Dr. Michael Mandel has developed a toolkit for states navigating AI policy, suggesting educational partnerships and job retraining initiatives to drive growth. He highlights the importance of coupling these strategies with effective tax incentives, stating, “Studies have shown a positive economic effect from tax incentives,” while emphasizing the need for smart, responsible investment.

WHAT’S NEXT: As these developments unfold, all eyes will be on Congress and how they respond to the coalition’s calls. The outcome could set a critical precedent for AI regulation across the United States and influence how states like New York continue to shape their own legislative landscapes in the face of federal constraints.

Stay tuned for updates as this story develops, and consider sharing this critical information to raise awareness about the ongoing battle for state-level AI governance.