US AI legal landscape: patchwork state laws pose challenges for businesses amid congressional inaction

BCLP Counsel Goli Mahdavi was quoted in Yahoo Finance discussing the complex web of artificial intelligence (AI) laws in the U.S., marked by varying state regulations and the absence of a national AI law — a mounting source of confusion for businesses racing to capitalize on the rise of this technology.

In 30 states across the U.S., legislators are proposing and adopting new laws targeting everything from the protection of children and data transparency to reducing bias and protecting consumers from AI-generated decisions in healthcare, housing, and employment. The new laws aim to place constraints, either directly or indirectly, on how AI systems are designed and used. Though individual state laws share some common themes, their subtle differences can make business compliance a challenge— highlighting the need for clarity and uniformity in regulations.

“It’s really just a mess for business," said Goli, Counsel about the still-developing bills and newly enacted statutes. "It’s just a lot of uncertainty."

While President Biden’s executive orders emphasize responsible AI use, the absence of a unified federal approach leaves room for diverse state-level initiatives. Yet the state laws being debated or enacted in the U.S. do reflect priorities set out by the federal government, Goli said. Looking ahead, the patchwork of U.S. laws underscore the shifting priorities surrounding AI governance amid a digital boom.

Goli is a founding member of BCLP’s Artificial Intelligence working group and has specialized training in AI governance.