AI remains one of the most significant trends in the global tech landscape. GrandViewResearch estimates the global AI market at almost $400 billion, set to reach around $2 trillion by 2030. OpenAI, the creators of ChatGPT, was valued at nearly $300 billion as of March.
After swiftly moving through the House of Representatives in May, the bill is now under scrutiny by the Senate parliamentarian to ensure it complies with Senate regulations in a process known as a “Byrd Bath,” named after Sen. Robert Byrd of West Virginia.
AI legislation is making waves across the United States, with governors already signing some bills into law and many more pending in nearly every state. For instance, last September saw California teetering on the brink of passing a stringent AI safety bill that would require a “kill switch” in all AI systems to prevent misuse or malfunction. While Governor Gavin Newsom vetoed that specific bill, other AI regulations were signed into law, with more than 30 additional bills currently making their way through the state legislature.
Despite some Senate Republicans being against this halt, such as Senator Marsha Blackburn of Tennessee and Senator Josh Hawley of Missouri.
Donald Trump’s “One Big Beautiful Bill,” focusing on spending and taxes, achieved a significant victory over the weekend with a provision poised to revolutionize the AI industry.
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Microsoft’s chief scientist, Dr. Eric Horvitz, and former tech advisor to Joe Biden, has cautioned that banning state AI laws could impede, rather than accelerate, technological advancements, as reported by The Guardian.
“It is up to us as researchers to communicate to government entities, particularly those advocating for no regulation, that this approach could hinder progress,” Horvitz emphasized at an Association for the Advancement of Artificial Intelligence meeting last Monday, as cited by The Guardian. “Guidance, regulation… reliability controls are essential for driving the field forward and facilitating advancements to happen more swiftly in various aspects.”
“We cannot afford to halt states from stepping up and protecting their citizens,” said Marsha Blackburn, a Republican Senator from Tennessee, according to The Tennessean.
Senate Republicans are aiming to pass a new bill this week, hoping to have it ready for President Trump’s signature by July 4th.
While this particular provision passed the review by the Senate parliamentarian, others remain hanging in the balance, according to Bloomberg.
However, there are reservations about granting complete autonomy to the AI industry.
The relaxation of state regulations appears to clear the path for the AI sector to innovate and create solutions that can significantly impact financial bottom lines. However, there are concerns that overly strict regulations could potentially hinder progress in the U.S., with industry leaders like Nvidia CEO Jensen Huang and Arm CEO Rene Hauss warning that China might surpass the U.S. if regulation becomes excessive.
