How different states are approaching AI

A W. P. Carey accountancy expert predicts that states will continue to implement their own legislation related to AI and employment, health, and transparency until rules and regulations are enforced by the federal government.

In this story published Aug. 18, 2025, on Brookings:

The majority of bills proposed in 2025 by states were focused on protecting citizens from the overreach of AI. States recognize the need to act on AI, albeit they are taking a variety of approaches. Still, common ground is found in areas where tangible harm is seen or widely considered a problem (i.e. CSAM, NCII, and elections).

There is a storm cloud over this progress at the federal level, and it is unclear how this will affect how states are addressing AI. Republicans in the U.S. Senate recently proposed a 10-year moratorium on states enacting any laws that regulate AI, though it was eventually dropped. Still, several lawmakers supported the measure, and we believe that this battle is just beginning, and it is unclear what direction Congress will eventually go. However, it is clear that the federal government is planning on keeping a close eye on state legislation, and the federal AI Action Plan has tasked the FCC with monitoring the impact of state laws.

Until and unless prohibited by federal law, we expect states to continue pressing hard on AI legislation to address their citizens' concerns. The topic is simply too pressing for the states to stand by while the federal government tries to figure it out.

— Greg Dawson, clinical professor of accountancy