In response to the accelerating development of artificial intelligence (AI), states across the U.S. are implementing policies aimed at balancing innovation with essential protective measures related to privacy and cybersecurity. A recent report from the Council of State Governments (CSG) highlights a robust trend, revealing that AI governance has emerged as a top legislative priority, resulting in 252 AI-related measures proposed in 2025 alone.
Despite ongoing efforts from the federal government to assert its authority over state-level regulations, such as attempts to challenge the autonomy of states through a now-defunct regulatory moratorium and an AI action plan threatening federal funding for “restrictive” state laws, local legislatures are forging ahead. A draft executive order is in the works to further diminish state regulations on AI, proposing the establishment of an AI Litigation Task Force aimed at contesting state-level laws, as reported by POLITICO Pro.
Diverse Legislative Focus on AI
The breadth of the state-level legislative landscape varies considerably. For instance, Texas Senate Bill 1964 has created a framework for the transparent use of AI by government entities. In contrast, Louisiana House Resolution 320 focuses on enhancing professional development in AI within educational institutions.
Key areas of emphasis in these state policies include the safeguarding of personal information and data privacy, alongside measures to regulate disinformation and deepfakes. Notably, the 2024 Utah Artificial Intelligence Policy Act represents the first initiative to provide consumer protections specific to AI. The Texas Responsible Artificial Intelligence Governance Act mandates explicit consent for the commercial use of biometric data. Meanwhile, California’s Assembly Bill 502 prohibits malicious AI-generated media in election communications, and North Dakota House Bill 1167 requires disclaimers for political media that employs AI impersonation.
Public perception of AI remains skeptical, with only 32 percent of Americans expressing trust in the technology, according to the report. Legislative actions, such as Michigan House Bill 4668 which protects whistleblowers, alongside transparency requirements, are seen as vital steps toward rebuilding trust. Additionally, measures like North Carolina House Bill 970, which seeks to prevent algorithmic price hikes related to rent, aim to address public concerns about the implications of AI on everyday life.
Enhancing AI Implementation through Partnerships
Despite the complexities of regulatory frameworks, states are actively advancing the use of AI across multiple sectors, including law enforcement and education, as detailed in the report. Public-private partnerships are increasingly seen as catalysts for AI implementation in state governance. Highlighted initiatives include Amazon’s investment in AI infrastructure in Pennsylvania, New York’s Empire AI initiative, and California’s collaboration with NVIDIA to foster AI workforce training. Experts argue that the varied landscape of state legislation does not hinder these partnerships; rather, it may actually facilitate them.
To evaluate the effectiveness of state-level AI legislative measures, CSG has introduced the State AI Competitiveness Indicators, a benchmarking tool assessing technology infrastructure and human talent. This index considers the introduction of AI legislation, the presence of top AI firms, venture capital investments, and the availability of data centers, among other factors. Interestingly, a higher volume of AI-related legislative measures correlates positively with a state’s competitiveness in developing AI technologies.
The report outlines essential takeaways for state lawmakers, emphasizing the need for transparency and accountability as foundational elements of AI governance. It advocates for human oversight in AI deployment, underscores the critical nature of consumer protections, and calls attention to workforce impacts and environmental sustainability. As federal regulation remains limited, states are increasingly seen as the leaders in shaping AI policy.
In light of these developments, the National Association of State Chief Information Officers noted that states have been compelled to create their own AI standards, meeting unique local needs while striving for effective service delivery and data protection.
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