State-Level Regulation of AI and Privacy Advances

Published Date: 20/07/2024

As federal action on AI regulation stalls, states are taking matters into their own hands to protect consumers and prevent misuse.

With no new federal artificial intelligence laws on the horizon, state legislators are stepping up to regulate AI technologies. Colorado has just signed into effect one of the most comprehensive regulatory laws in the country, focusing on mitigating consumer harm and discrimination by AI systems. Meanwhile, other states like New Mexico are regulating how computer-generated images can be used in media and political campaigns, and Iowa has criminalized sexually charged computer-generated images, especially those portraying children.

Delaware state Rep. Krista Griffith, who has sponsored AI regulation, emphasizes that states can't afford to wait for federal action. Her Delaware Personal Data Privacy Act, signed last year, will give residents the right to know what information is being collected by companies, correct inaccuracies, and request data deletion. Similar laws have been enacted in other states, addressing how personal data can be used.

Despite numerous tech regulation bills in Congress, none have passed. The 118th Congress saw bills aimed at restricting high-risk AI models, creating regulatory authorities, and protecting consumers through liability measures. In April, a new draft of the American Privacy Rights Act of 2024 was introduced, and in May, the Bipartisan Senate Artificial Intelligence Working Group released a roadmap for AI policy.

Griffith also introduced a bill to create the Delaware Artificial Intelligence Commission, warning that states risk falling behind on these rapidly evolving technologies if they don't act. States have been legislating about AI since 2019, but bills relating to AI have surged in the last two years. Over 300 bills have been introduced so far this year, and 11 new states have enacted laws about AI use, regulation, and oversight.

Everyday people are increasingly interacting with AI, from online customer service chatbots to smart home devices. The industry has been experimenting with decision-making algorithms for decades, but generative AI has driven rapid growth in the last few years. A potential turning point in public awareness came in 2022 with the emergence of ChatGPT.

Competing interests between industry and privacy advocates are driving the regulatory landscape. Andrew Gamino-Cheong, cofounder of AI governance platform Trustible, notes that too many regulations can stifle innovation, while unchecked AI could raise privacy concerns or perpetuate discrimination.

States are regulating AI in various ways, including 

  Interdisciplinary collaboration and oversight  Many states have enacted laws bringing together lawmakers, tech professionals, academics, and business owners to oversee AI design, development, and use.

  Data privacy  States like California, Colorado, and Delaware have laws regulating data collection, use, and protection.

  Transparency  Laws in California, Florida, and Maryland require businesses to disclose AI use, especially in campaign materials.

  Protection from discrimination  Laws in California, Colorado, and Illinois aim to prevent algorithmic discrimination in areas like criminal justice, hiring, and banking.

  Elections  Laws in Alabama, Arizona, Idaho, and New Mexico focus on AI in political campaigns, requiring disclaimers or banning certain AI-generated content.

  Schools  Florida and Tennessee have laws outlining AI use in education, including customizing and accelerating learning.

As states continue to lead the charge in regulating AI and protecting consumers, the industry will need to adapt to these changing landscapes.

FAQS:

Q: Why are states taking the lead in regulating AI?

A: With no new federal AI laws, states are stepping up to protect consumers and prevent misuse.

Q: What are some examples of state AI regulations?

A: States like Colorado, Delaware, and California have enacted laws regulating AI use, data collection, and protection.

Q: How are everyday people interacting with AI?

A: People interact with AI through online customer service chatbots, smart home devices, and other technologies.

Q: What is the industry's stance on AI regulation?

A: The industry is concerned about stifling innovation, while also recognizing the need for responsible AI development and use.

Q: How many states have enacted AI regulations?

A: 28 states have enacted laws about AI use, regulation, and oversight.

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