Industry Execs Ask Congress for Uniform AI Rules

WASHINGTON – Artificial intelligence technologies are evolving at a breakneck speed but the regulations that govern them are not, according to industry executives at a congressional hearing Wednesday.

The result is a complex web of state and federal regulations that threatens to slow innovation and limit U.S. competitiveness, they told a House Energy and Commerce subcommittee.

“Heavy handed regulations may ensure that the next great American company never makes it,” said Rep. Gus Bilirakis, R-Fla., chairman of the Subcommittee on Commerce, Manufacturing and Trade.

His subcommittee is overseeing legislative proposals to develop a single regulatory framework for the U.S. artificial intelligence industry.

A report from the committee says AI is likely to add as much as 7% to the global gross domestic product and 1.5% to annual productivity growth over the next decade.

Another House Energy and Commerce estimate suggests AI could generate $2.6 trillion to $4.4 trillion in value across a variety of industries.

So far, it has been regulated by government agencies, such as the Federal Trade Commission, like any other industry.

The unique nature of AI as an emerging technology indicates it needs its own rulebook to encourage development and to keep the United States in the lead against competitors like China, according to members of the subcommittee.

Much of the concern during the congressional hearing was directed at state regulations, which have been criticized for being too broad, inconsistently enforced and technologically outdated.

More than 1,000 AI legislative bills have been introduced in the United States so far this year, mostly at the state level, according to a congressional report.

“The states got out ahead of us,” said Rep. Jay Obernolte, R-Calif.

He supports a provision in the sweeping tax bill facing a vote in the House as soon as this week that would ban states from regulating artificial intelligence for a decade.

The provision has broad support from the AI industry. They say a light regulatory touch would help companies move forward with the technology that is transforming society.

Obernolte said corporate officials are making “billion dollar decisions” on AI investment but face uncertainties on the regulations that could interfere with the success of their efforts.

“They need regulatory certainty to do that,” Obernolte said.

Democrats on the House Energy and Commerce Committee agreed government policies need to be revised to encourage growth of artificial intelligence but cautioned against possible abuses of consumers.

Artificial intelligence can be used to generate fakes videos and images, automate cyberattacks and create disinformation in political campaigns

“The stakes are high. This technology is moving so fast,” said Rep. Kim Schrier, D-Wash.

She added, “My constituents need and want state protection.”

Rep. Lori Trahan, D-Mass., said that if Congress frees the AI industry from adequate consumer protections, “You’re basically inviting the fox into the henhouse.”

Adam Thierer, a fellow at the public policy foundation R Street Institute, said regulations that are overprotective of consumers run the risk of inhibiting industry growth.

“Fear-based regulatory policies from both abroad and the states threaten it,” Thierer said.

Marc Bhargava, managing director of the venture capital company General Catalyst, said the United States could lose its lead in AI with inappropriate regulations.

“I think the U.S. is still ahead but it needs to keep investing to stay ahead,” he said.

He also advocated for a single set of rules.

“A national framework is preferable to a patchwork of state policies,” Bhargava said.

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