Anticipated developments in state AI legislation following the collapse of the intended moratorium
In a recent article for Tech Brew, Hope Anderson, a partner at the law firm White & Case, predicted an acceleration in the development of state-level artificial intelligence (AI) legislation. As a specialist in Data, Privacy & Cybersecurity, Technology, and Artificial Intelligence (AI), Anderson has extensive expertise in AI Regulatory matters.
The surge in diverse, state-specific AI laws is attributed to the breadth of use cases for AI technologies. Unlike digital privacy laws, which tend to be more uniform, AI legislation is fragmented due to its impact on a wide array of sectors. As a result, states are passing laws on a variety of AI issues, including automated decision-making, deepfakes, healthcare, and employment decisions such as hiring, firing, promotions, and compensation.
This state-level dynamism is expected to continue and potentially outpace earlier waves of privacy law development. Notable state AI laws include those passed or under consideration in Colorado, New York City, Illinois, and California. For instance, California has introduced the California AI Transparency Act, effective January 1, 2026, which mandates transparency in AI systems.
Other states are tailoring laws to their unique priorities and concerns, resulting in a patchwork regulatory environment that addresses both comprehensive AI governance and sector-specific issues. This trend in AI legislation is compared to previous actions around digital privacy, reflecting the multifaceted nature and rapidly evolving use cases of AI technologies.
Hope Anderson's service areas are primarily based in the United States and North America. She provides advisory and compliance services for Privacy, Content, and non-privacy data regulation. For more information, please contact the local media contact.
The development of state-level AI legislation has accelerated significantly due to the lack of comprehensive congressional policy action. This acceleration follows the failure of a proposed 10-year moratorium on state and local AI regulations in the federal "One Big Beautiful Bill Act," which was ultimately removed due to bipartisan opposition and concerns about vagueness and litigation risks. As a result, states remain free to enact their own AI regulations.
Comprehensive AI laws and specific laws on topics like automated decision-making, deepfakes, and healthcare are anticipated as states continue to accelerate their efforts to regulate AI, potentially outpacing what was seen with privacy.
- The acceleration in state-level AI laws is partly due to the absence of comprehensive congressional policy, leading states to enact their own AI regulations.
- Hope Anderson, a partner at White & Case, who specializes in AI Regulatory matters, predicts this trend will continue, potentially outpacing earlier waves of privacy law development.
- As states pass laws on various AI issues, ranging from automated decision-making to healthcare, a patchwork regulatory environment is created, addressing both comprehensive AI governance and sector-specific concerns.
- In her practice, Hope Anderson provides advisory and compliance services for Privacy, Content, and non-privacy data regulation, focusing primarily on the United States and North America.
