President Donald Trump has issued an executive order aiming to prevent states from enacting new laws governing artificial intelligence (AI), except in certain circumstances. This move is grounded in the belief that the United States should maintain a leadership position in AI for “national and economic security.” Trump is urging Congress to establish a federal standard that would supersede individual state regulations, which he argues stifle innovation. States that do not comply with the executive order could face legal challenges from the U.S. Department of Justice and potential loss of federal funding.
The South Carolina Legislature now faces a pivotal decision on how to respond. There is a bipartisan consensus on the need to safeguard children from online exploitation, a pressing issue as the rise of sextortion and AI-generated mental health counseling has contributed to alarming statistics — nearly one in five children may have been victims of online threats, leading to over 50 reported suicides nationwide. Lawmakers across the political spectrum have voiced their commitment to tackle these urgent concerns.
Despite this, federal regulation of AI has been noticeably absent since the Communications Decency Act of 1996, which primarily served as a liability shield for tech companies rather than providing concrete protections. Moreover, the potential harms of AI extend beyond children; adults grappling with mental health issues are also affected. A recent Washington Post article highlighted a tragic case where a former tech executive allegedly killed his mother, with claims that ChatGPT had made her a target.
Across the country, over 250 bills aimed at regulating AI in healthcare have been introduced in 47 states. Additionally, more than 40 state-level bills are targeting AI algorithms believed to foster anti-competitive and discriminatory practices, particularly in the housing sector, often resulting in inflated rents. The algorithms developed by tech companies are also implicated in exacerbating societal divisions, as social media platforms leverage user data to enhance engagement through emotionally charged content, often amplifying misinformation and extreme viewpoints.
Cindy Shen, a communications professor at the University of California at Davis, argues that “outrage and hostility tend to drive engagement,” leading to the formation of online echo chambers. This phenomenon poses a significant challenge to the political landscape, as candidates increasingly cater to the most extreme opinions shaped by social media, rather than seeking common ground to address broader issues.
Given the landscape, it appears unlikely that Congress will pass AI regulations, despite Trump’s endorsement. The significant financial resources that AI companies will invest in influencing the regulation debate create formidable barriers to legislative action, even as a recent Gallup poll indicates that 80% of Americans support increased AI safety regulations.
In light of these challenges, some South Carolina lawmakers, like state Rep. Brandon Guffey, are advocating for proactive state-level regulations to safeguard citizens from both intentional and unintentional harms associated with AI. Guffey has emerged as a national figure in the effort to protect children from online dangers and has pledged to advance state regulations that might provoke a legal confrontation with federal authorities. “If there is one that takes away states’ rights, the first thing I am going to do is to try to pass as many regulations as I can on AI just to get challenged in court from the federal level,” Guffey stated.
While Trump’s executive order suggests that states can implement AI regulations specifically aimed at child safety, it remains uncertain how robust these protections will be in the face of pushback from the tech industry. As Congress continues to grapple with the complexities of AI legislation, the onus may increasingly fall on state governments to take the lead in protecting citizens from the multifaceted threats posed by artificial intelligence. In a climate marked by federal inaction, the proactive measures taken by states could shape the future of AI regulation and the safeguarding of public interests.
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