SC Considers AI Regulation Amid National De-regulation Efforts
A recent report from the Massachusetts Institute of Technology revealed that AI has the potential to replace 11.7% of jobs in the U.S. This alarming statistic has prompted several states to either pre-file or enact legislation aimed at regulating AI, which has rapidly evolved from simple virtual chatbots to complex app-coding programs.
State Responsibility in AI Regulation
“We need to protect our population,” stated Frank Knapp, CEO of the South Carolina Small Business Chamber of Commerce. He emphasized the ineffectiveness of Congress in regulating technology companies, suggesting that the responsibility lies with the states. “This is really a states’ rights issue,” he added.
In December, former President Donald Trump signed an executive order aimed at establishing a national policy framework for AI, intending to create a consistent standard across states instead of allowing 50 disparate policies. This move raises significant questions about its implications for South Carolina, where three AI-related bills have already been pre-filed.
Local Advocacy for Reform
Brandon Guffey, a South Carolina Republican representative and chair of AI regulation, argued that the federal government should not impede state efforts to protect citizens. His advocacy is deeply personal; Guffey’s son tragically died by suicide four years ago after falling victim to an online sextortion scam.
“As you’re talking to these chatbots, you’re giving data and datasets at every point to where it is getting to know you better and understanding your psyche,” Guffey explained. He expressed concern that if this data is misused for targeted advertising or propaganda, it could lead to serious consequences.
Proposed Regulations for 2026
Guffey believes that regulating AI should be prioritized in 2026, focusing on critical protections such as:
- Ensuring chatbots cannot provide psychological advice
- Protecting user data from exploitation
Guffey warned, “Government, unfortunately, has a habit of moving very slowly. The technology moves very fast. We have to learn to be very reactive whenever we see a problem, because we’ve learned big tech is not going to be reactive. And then that could cost children their lives.”
Looking Ahead
As the session starts next week, many questions remain regarding how AI regulation will progress in South Carolina. The urgency for a proactive approach to AI oversight is clear, as the implications of inaction could be dire for the state’s residents.
