Texas & Virginia Steer States Away from European-Style AI Regulation
Recent developments in Virginia and Texas indicate a shift in the conversation surrounding artificial intelligence (AI) policy, moving towards a more positive and pro-innovation stance. As of March 2025, over 900 AI-related legislative proposals have been introduced across various states—averaging approximately 12 per day. The majority of these proposals aim to impose new regulations on algorithmic systems, reflecting an unprecedented level of interest in regulating emerging technologies.
Virginia’s Veto of AI Regulation
On March 24, Virginia Governor Glenn Youngkin vetoed a significant AI regulatory measure, known as the High-Risk Artificial Intelligence Developer and Deployer Act (HB 2094). This legislation was criticized for potentially harming the state’s position as a leader in digital innovation. Youngkin’s veto was grounded in the belief that the bill would:
- Hinder the creation of new jobs
- Discourage business investment
- Limit access to innovative technology in Virginia
Additionally, the Chamber of Progress estimated that compliance with this bill would have cost AI developers nearly $30 million, significantly impacting small tech startups.
Texas’ Reformed AI Governance Act
In Texas, Rep. Giovanni Capriglione introduced a revised version of the Texas Responsible AI Governance Act (TRAIGA) shortly after Virginia’s veto. The original version of TRAIGA was heavily criticized for its stringent regulations, but the new iteration has shed many of its more onerous elements. This change marks a notable shift towards a more balanced approach to AI governance, aimed at fostering innovation while still addressing concerns about potential risks associated with AI technologies.
Implications for AI Policy
The actions taken by Virginia and Texas may signify a turning point in the approach to AI policy across the United States. Other states have been considering regulatory measures that align with a European Union (EU)-style framework, which tends to prioritize regulation over innovation. The moves by Virginia and Texas suggest a growing recognition of the need to align state AI policies with a national focus on fostering AI opportunities and investments, particularly in light of recent advancements from China in the AI sector.
Rejecting Fear-Based Regulation
The Virginia bill vetoed by Governor Youngkin is part of a broader trend of legislation pushed by the Multistate AI Policymaker Working Group (MAP-WG), which comprises lawmakers from over 45 states attempting to establish a consensus on AI regulation. Many of these bills echo the EU’s new AI Act and reflect the Biden administration’s earlier approach to AI policy, which was criticized for being fundamentally fear-based and for viewing AI as potentially harmful.
Lessons from Colorado’s AI Regulation
The situation in Virginia and Texas also serves as a cautionary tale for other states considering similar regulations. Colorado’s recent AI law faced backlash from small tech entrepreneurs who argued it imposed vague and overbroad mandates that stifled innovation. Governor Jared Polis acknowledged the potential negative impact of such regulations, leading to the formation of a task force to address concerns about compliance burdens on developers.
Conclusion
The recent actions by Virginia and Texas highlight the importance of understanding the implications of AI regulation. As states continue to navigate the complex landscape of AI policy, the lessons learned from these developments could influence future legislation across the country. The rejection of overly burdensome regulations in favor of a more supportive framework may pave the way for a thriving AI sector in the United States, enabling innovators to drive progress without being hindered by excessive compliance costs.
Ultimately, a cohesive approach to AI regulation that promotes innovation while ensuring public safety and ethical considerations is essential for the continued advancement of this transformative technology.
