Lawmakers Add Language to Block AI Regulation to Budget Bill

Lawmakers have made a last-minute addition to the Budget Reconciliation bill, in the form of language that would prohibit states from regulating artificial intelligence.
Lawmakers Add Language to Block AI Regulation to Budget Bill
Written by Matt Milano

Lawmakers have made a last-minute addition to the Budget Reconciliation bill, in the form of language that would prohibit states from regulating artificial intelligence.

Absent federal regulation, individual states have taken measures to regulate AI and protect citizens from unethical use of the technology. As 404 Media points out, California’s regulation requiring healthcare providers to disclose when AI is used to “communicate clinical information to patients” is a good example of such regulation.

Unfortunately for AI skeptics, lawmakers seem to want AI development and use to be as deregulated as possible. The following language was added to the Budget Reconciliation bill at the eleventh hour.

(1) IN GENERAL.—Except as provided in paragraph (2), no State or political subdivision thereof may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10- year period beginning on the date of the enactment of this Act.

(2) RULE OF CONSTRUCTION.—Paragraph (1) may not be construed to prohibit the enforcement of any law or regulation that—

(A) the primary purpose and effect of which is to remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system;
(B) the primary purpose and effect of which is to streamline licensing, permitting, routing, zoning, procurement, or reporting procedures in a manner that facilitates the adoption of artificial intelligence models, artificial intelligence systems, or automated decision systems;
(C) (C) does not impose any substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirement on artificial intelligence models, artificial intelligence systems, or automated decision systems unless such requirement—

(i) is imposed under Federal law; or
(ii) in the case of a requirement imposed under a generally applicable law, is imposed in the same manner on models and systems, other than artificial intelligence models, artificial intelligence systems, and automated decision systems, that provide comparable functions to artificial intelligence models, artificial intelligence systems, or automated decision systems; and
(D) does not impose a fee or bond unless—
(i) such fee or bond is reasonable and cost-based; and (ii) under such fee or bond, artificial intelligence models, artificial intelligence systems, and automated decision systems are treated in the same manner as other models and systems that perform comparable functions.

It is an interesting turn of events to see lawmakers, who are normally extremely critical of Big Tech and the dangers it poses, suddenly wanting to make sure the most dangerous tech in development is developed virtually unrestricted.

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