Basics

In the years since the first model of ChatGPT was released in 2022, artificial intelligence has expanded rapidly into nearly every sector of the economy. As a digital tool used by national and international businesses, most AI operates across state lines and would be regulated by the federal government. However, with the wide-ranging effects on businesses and consumers across sectors and the swiftly changing nature of the technology, creating a comprehensive federal framework to regulate AI has proven challenging.

While Congress has paid close attention to the issue in the past several years, it has not yet enacted a comprehensive framework. In the absence of a finalized federal framework, some states have taken steps to regulate AI companies within their jurisdictions and the use of AI within their borders. Laws and regulations in various states have elicited different reactions from industry stakeholders. Some have concerns that a geographic patchwork of regulations will create inoperable compliance structures and jeopardize broader business operations. This Basic will explore AI regulations across U.S. states and the ongoing conversations to build a federal regulatory framework.