John B. Quinn, the founder of Quinn Emanuel Urquhart & Sullivan LLP, the world’s largest law firm specializing in business litigation, highlights the lack of federal legislation on AI regulation in the U.S. Despite numerous bills introduced in Congress, legislation on AI is not expected to come from Washington soon. However, the states have taken the lead in creating laws to regulate AI. Colorado recently passed the country’s first comprehensive AI regulatory framework focusing on high-risk AI systems used in various sectors.
Colorado’s legislation imposes regulations on AI systems that impact decisions regarding education, employment, financial services, healthcare, housing, and more. AI developers and companies are required to prevent algorithmic discrimination based on various factors and to prove that they are managing and minimizing these risks through annual reviews and impact assessments. This legislation could set a precedent for future state regulations on AI and algorithmic discrimination.
States are also addressing the use of AI in law enforcement and government agencies. Measures have been implemented to regulate the use of facial recognition technology by police and ensure transparency and accountability in government AI decision-making. Commissions have been established in states like California, Alabama, Colorado, and Washington to evaluate and recommend best practices for AI use in government.
Concerns over AI-driven content curation and targeted advertising on social media platforms have prompted several states to consider regulating these practices. Legislation in South Carolina and California aims to restrict targeted advertising to users under 18 and prevent social media platforms from using features that could lead to addiction in children. States are also looking at the use of AI in online gambling and deepfake regulation to address privacy, security, and accountability issues.
States are also passing laws impacting AI technology in general, such as consumer data protection, discrimination, and child protection laws. States like California and Connecticut have consumer privacy laws that grant consumers rights to opt-out of the processing of their personal information and provide protections against discrimination caused by AI systems. Other states are considering or have enacted legislation requiring businesses to register their use of AI technology and report on policies to prevent discrimination by AI in state government.
In conclusion, while comprehensive federal legislation on AI regulation is not forthcoming, businesses using AI will face an increasing number of regulations issued by individual states. The role of states in regulating AI is becoming more significant, and businesses need to stay informed and compliant with the evolving regulations. It is advised to seek legal counsel for advice specific to individual situations. John B. Quinn’s insights shed light on the current landscape of AI regulation in the U.S. and the importance of staying abreast of state laws governing the use of AI technology.
