A New State and Federal Compact for Artificial Intelligence
Artificial intelligence (AI) has emerged at an unprecedented pace, scale, and magnitude in modern history, dominating various sectors including news media, business, finance, entertainment, and politics. However, the public policy debate surrounding AI has often been poorly informed, characterized by grand promises of economic prosperity or ominous projections of doom. A balanced approach to AI policy requires careful consideration and public accountability.
Key Policy Inflection Points
Two dominant policy inflection points merit attention:
- Federal Regulation vs. State Laws: A critical decision must be made regarding how much federal regulation should preempt state and local laws.
- Management of Data Centers: The infrastructure that supports AI—specifically data centers—requires governance akin to the regulatory frameworks established for railroads, electricity, and modern communications.
Addressing these issues necessitates open, cooperative debates between state and federal governments, emphasizing the need for bipartisan agreement. These topics are too significant to be settled through backroom legislative deals or executive orders.
The Role of Executive Orders
The use of executive orders to repeal state laws is fundamentally flawed. States possess police powers over public safety and consumer protection, and there is a presumption against preemption unless Congress has made its intentions clear. Recent U.S. Supreme Court rulings indicate that the executive branch lacks authority without explicit congressional legislation.
Public Sentiment on AI
Despite the enthusiasm of U.S. politicians who often view AI as essential for industrial competition—especially against China—public opinion surveys reveal skepticism or hostility towards AI. This disconnect highlights the need for sensible regulations that balance innovation with public safety.
Federal vs. State Responsibilities
The best path forward is to share responsibilities between state and federal governments:
- The federal government should take the lead on national security, cybersecurity, and infrastructure security.
- States must retain authority in health and public safety, particularly regarding local impacts.
For instance, California’s Senate Bill 53, which focuses on legally binding safety checkpoints for large AI systems, serves as a robust starting point for state-level regulation. These measures are preferable to voluntary industry standards, ensuring accountability through the force of law.
The Importance of Local Governance
States have extensive experience managing issues like electricity and water usage, making them crucial in overseeing AI data centers, which consume significant resources and affect local economies. Virginia’s success as a data center hub exemplifies how state regulators can collaborate with industry to create effective frameworks without federal preemption.
Challenges of Self-Regulation
Proposals for federal standards that rely on voluntary compliance fail to ensure accountability. The 2008 financial crisis serves as a cautionary tale about the dangers of insufficient oversight. Comprehensive legislation is essential, requiring input from various committees to ensure that Congress maintains its role in technology governance.
Conclusion: The Path Forward
The stakes of AI governance are enormous. While AI presents genuine opportunities in healthcare, education, and other fields, managing its risks demands an effective regulatory framework from the outset. Striking a balance between innovation and regulation is not only possible but necessary.
To achieve this, we must foster transparency and public participation in decision-making processes, ensuring open hearings and genuine deliberation. The choices made now regarding AI governance will shape whether its transformative potential serves the public interest or merely benefits a select few.
In conclusion, it is imperative to create a framework that encourages innovation while safeguarding citizens, respecting both federal and state roles, and ensuring accountability through robust legislation rather than empty promises.
