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US Regulation of Artificial Intelligence: Navigating the Legal Landscape

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Artificial Intelligence (AI) has become an integral part of our lives, transforming industries, enhancing productivity, and revolutionising technology. However, this rapid advancement in AI technology has also raised concerns about its potential risks and ethical implications. As a result, various states in the United States have taken the initiative to regulate AI to strike a balance between innovation and ensuring public safety. In this article, we will explore how states are regulating AI and the impact of these initiatives on technology companies, consumers, and society. 

The Role of States in Regulating AI 

AI regulation in the United States is primarily driven by a combination of federal and state laws. While federal laws focus on broader areas like consumer protection, privacy, and civil rights, states are stepping up to address AI’s specific and nuanced challenges within their jurisdictions. 

States, often considered laboratories for innovation, have adopted various approaches in regulating AI. These approaches range from developing comprehensive frameworks to focusing on niche aspects of AI technology. By doing so, states aim to protect their citizens from potential harm and build public trust in the rapidly evolving AI landscape. 

California’s Trailblazing AI Legislation 

California, known for being at the forefront of technology and innovation, has taken a pioneering role in AI regulation. In September 2022, the state passed the California Artificial Intelligence Accountability Act (CAIAA), which sets a new standard for AI regulation in the country1

The CAIAA focuses on three core pillars: 

a) Transparency and Explainability: The legislation mandates that companies using AI technologies must provide clear and concise explanations of their AI systems’ decisions to consumers. This move aims to increase transparency and accountability, reducing the potential for biased or discriminatory AI outcomes. 

b) Data Privacy and Security: Under the CAIAA, companies are required to adhere to stringent data privacy and security standards while handling sensitive consumer data. The legislation establishes protocols to ensure that AI-driven applications respect user privacy and prevent data breaches. 

c) Bias Mitigation: California’s AI legislation also addresses the critical issue of bias in AI algorithms. Companies are required to regularly audit and update their AI systems to mitigate any discriminatory biases that may arise during operation. 

By implementing such robust AI regulations, California hopes to inspire other states to follow suit, creating a cohesive and responsible AI regulatory framework across the country. 

State-by-State Artificial Intelligence Legislation Snapshot 

As of 2023, several other states have taken significant steps in regulating AI. Let’s delve into a snapshot of notable AI legislation in specific states: 

(visit for interactive map) 

New York 
The state of New York passed the AI in Employment Act, which prohibits employers from making hiring decisions solely based on AI algorithms. The law aims to prevent discriminatory hiring practices and encourages human involvement in the hiring process. 

Texas introduced the Automated Vehicle Safety Act, which outlines the requirements for testing and deploying autonomous vehicles on its roads. The legislation sets safety standards, ensuring that AI-driven vehicles do not compromise public safety. 

The Illinois Biometric Information Privacy Act (BIPA) has been updated to include provisions concerning AI technologies that process biometric data. Companies are mandated to obtain explicit consent from individuals before using their biometric data for AI applications. 

The state passed the AI in Education Act, which governs the use of AI technologies in educational settings. The legislation emphasises the ethical use of AI in student assessment and aims to prevent AI from adversely affecting students’ educational opportunities. 

Florida enacted the AI Malpractice Liability Act, which holds companies accountable for AI-generated errors leading to significant damages. The legislation establishes a clear framework for attributing liability in AI-related incidents.2 

Pros and Cons of State-Level AI Regulation 

State-level AI regulation comes with both advantages and challenges. Let’s explore some of the pros and cons: 


  • Tailored Approach: State regulations can be tailored to address specific AI challenges within each jurisdiction, allowing for more nuanced and context-specific laws. 
  • Pioneering Innovation: States like California can act as trailblazers in AI regulation, setting high standards and inspiring other states and even the federal government to follow suit. 
  • Protecting Citizens: State-level regulation demonstrates a commitment to protecting citizens from potential AI risks, building public trust in the technology. 


  • Fragmented Legal Landscape: Divergent state regulations can create complexities for businesses operating across state lines, potentially leading to compliance challenges. 
  • Inconsistent Standards: Varying regulatory standards may lead to gaps or inconsistencies in AI governance, potentially hindering the development and adoption of AI technologies. 
  • Burden on Small Businesses: Complying with diverse state regulations might impose a significant burden on smaller businesses and startups, potentially limiting their growth. 

The regulation of artificial intelligence at the state level is gaining momentum as states recognise the importance of striking a balance between technological innovation and public safety.  

By focusing on key areas such as transparency, data privacy, bias mitigation, and liability, state-level AI regulations aim to foster a responsible and ethical AI ecosystem.  

VIQ Solutions recognises the efforts of states in regulating AI are vital in shaping the future of technology in the United States. As AI continues to evolve, VIQ is dedicated to ensuring that the benefits of our AI technology are harnessed responsibly and equitably for the betterment of society.