Future of AI: A Regulatory Patchwork Is Not the Answer
U.S. Chamber coalition raises concerns over a patchwork of state-level proposals to regulate AI that could slow the technology’s benefits and stifle innovation.
 
In an open letter to state leaders, the U.S. Chamber of Commerce and more than 60 state and local chambers from across the country called for the prioritization of AI development and adoption and the opposition of a patchwork of regulations.
 
Why it matters: As AI continues to evolve rapidly, it opens new doors to industry transformation, investment opportunities, job creation, and benefits businesses of all sizes. 
 
Implications of a Regulatory Patchwork: A patchwork of state-level proposals to regulate artificial intelligence, however, threatens to slow the realization of these benefits and stifle innovation, especially for small businesses that stand to benefit the most from the productivity boosts associated with AI. For example, California is already considering sweeping new AI rules based on the California Privacy Rights Act.
While there are roles for states to promote the adoption of AI within schools, businesses, and government entities, the federal government should take the lead in developing a comprehensive framework for regulating AI.
 
Why a Federal AI Regulatory Framework is Necessary: A risk-based federal framework is the best option to provide American businesses with the certainty they need to invest in AI development and adoption and ensure our workforce is prepared to transition to an AI-empowered economy.
 
Earlier this year, the U.S. Chamber’s Commission on AI Competitiveness, Inclusion, and Innovation released a report and recommendations for a federal AI regulatory framework that optimizes AI’s benefits and mitigates its potential risks. Read the report here. 
 
 

A National AI Privacy Standard Is Essential
November 20, 2023
A recent House Energy & Commerce Committee hearing entitled “Safeguarding Data and Innovation: Setting the Foundation for the Use of Artificial Intelligence” spotlighted the importance of balancing data privacy with the data needs of AI systems.
The Chamber advocates for Congress to establish a preemptive national data law since it would prevent a disjointed state-by-state approach, offering the market stability needed for the emerging AI-driven digital economy to flourish.
Why it matters: A national privacy standard that protects privacy while enabling continued innovation is crucial for the U.S. to continue leading in AI and secure the digital economy's benefits. 
According to McKinsey & Co., AI is well positioned to be an economic growth powerhouse—potentially adding up to $4.4 trillion annually to the global economy. 
Balancing act: New privacy legislation should weigh how limits on data collection could affect the fairness and legality of the outputs produced by AI. That’s because good data is essential for effective AI, and overly strict privacy could impede the development of lawful and impartial AI.
Experts agree: Stanford University's Human-Centered Artificial Intelligence (HAI) aligns with the Chamber’s sentiment and points out the tension between keeping data private and collecting enough information to ensure AI is fair and unbiased.

• Stakeholders might not have enough time to offer input, which could result in ill-informed regulations.
• Agencies like the FTC and CFPB should not see this as an opportunity to do as they please. All agencies must continue to act within Congressional limits and abide by Supreme Court rulings.

• The Chamber’s Commission on AI Competitiveness, Inclusion, and Innovation and AI Working Group have been providing the federal government with a roadmap to a regulatory framework that optimizes AI’s benefits and mitigates its potential risks. Read the commission’s report released early this year.
• The Responsible AI Business Leadership Initiative is educating policymakers on the technology’s benefits and pushing for accountable policies.
• The Chamber has been hosting discussions – like the Global AI Forum – with industry and government leaders on the need to collaborate and establish trust in AI systems and policies.