If there was ever a single instance of talentless legislative ineptitude, this is it. On the surface, it looks like just another “no laws for the rich kids” exercise.
Disclaimer: This is just an opinion. Doesn’t mean I’m right or wrong, but there are some pretty horrible possibilities here that need an airing.
It’s very much deeper and much worse.
Absolutely nothing is clear regarding the status of AI legal processes, and that mess applies to all 50 states.
The last-second AI proposal is only a few days old. It was inserted into the budget and duly passed. The proposal is to prohibit “any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems” by states and local governments for 10 years.
The hype for this blasé, thoughtless, deregulatory disaster is that it will “avoid bureaucracy” and “win the AI race”, and promote “American AI leadership”, etc.
Drivel.
This could prevent legal recourse for just about anyone and everyone simply because there’s AI involved. This flies in the face of everything related to functional AI. The risk factors for AI are already considered high by a bipartisan committee.
At least 40 states already very understandably don’t like it. It’s also highly debatable whether the Federal government can prohibit the states from making their own laws.
The argument is that companies can’t comply with different laws in different states. Do tell. They’ve been doing that since Independence. Is there a compliance problem? No. Is it an excuse? Yes.
So, for 10 years, is AI a legal no-go zone? How does that work? It can’t. AI is rapidly becoming as integral to daily life as a smartphone. There must be laws.
A tide of questions arises:
Who enforces legal actions against AI-related crimes? We’re talking about things like hacking, identity theft, fraud, and all the other merry possibilities online.
If an AI agent steals your Bitcoins or life savings, what are you supposed to do about it? Who manages the legal processes?
If the states can’t do it, does that mean the Federal government manages all issues related to all AI-related crimes?
What about civil claims against AI services, etc?
Will there be an overarching Federal law governing AI?
Should you go broke due to an AI hallucination or a bad actor AI agent with no legal comeback?.
Let’s keep it simple:
Laws and regulations are the sole basis of your ownership of anything and your rights to protect your interests. That’s why deregulation is so incredibly stupid.
The US states are all regulatory jurisdictions. What happens in those states is mostly subject to state law. The states do the enforcement and legal processes except for specific Federal crimes.
A crime is a crime. A legal liability is a legal liability. The right to due process isn’t negotiable.
This proposal is an attempted Get out of Jail Free card for a sector involving trillions of dollars.
There’s another problem called, rather quaintly, the rest of the world.
“American AI leadership” is debatable. China had no problem matching current garden-level AI with DeepSeek. America’s anti-regulation position will be in direct conflict with just about every other country on Earth. Cross-jurisdictional conflicts could be even worse than the tariffs.
There are no mentions of extremely high risks like AI security, cyberespionage, tech theft, or anything else that happens in the real world every nanosecond. How does an unenforceable AI environment add up to a good move in any direction?
Under this proposal, anyone could commit almost any crime using AI, including stealing the AI tech itself, and that’s fine with everyone? How about massive financial fraud? That’s OK, too?
You’ll be sorry. Very sorry.
___________________________________________________________
Disclaimer
The opinions expressed in this Op-Ed are those of the author. They do not purport to reflect the opinions or views of the Digital Journal or its members.
