US states regulate artificial intelligence development
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California, New York, and Texas are each enacting laws to manage the growing use of artificial intelligence.
In California, Governor Gavin Newsom signed laws requiring AI developers to assess and report risks, and to allow evaluation of AI systems for legal compliance. New York’s Governor Kathy Hochul established a law requiring clear labeling of AI-generated content in advertisements, with penalties for non-compliance.
Texas passed a law prohibiting AI use for illegal activity or deceptive practices, and requiring government agencies to inform people when they interact with AI systems. Texas is also investing heavily in AI infrastructure while simultaneously regulating it, and Governor Greg Abbott paused approvals for new data center connections to audit projects. These laws come as one in five American workers now use AI in their jobs, according to Pew Research Center. Some leaders are critical of the new regulations.
Steve Hilton, a California gubernatorial candidate, argues that strict rules could drive technology businesses away from the state, increasing costs and reducing opportunities. He proposes a plan focused on sensible regulation, affordable energy, and educational reform to support AI development. The states’ actions reflect a broader effort to balance the benefits of AI with the need to protect citizens and ensure responsible development. The laws set specific requirements for developers and users, and establish penalties for violations.
