U.S. Senator Maria Cantwell has voiced her opposition to a proposed amendment by Senators Cruz and Blackburn, which aims to impose a five-year moratorium on states' ability to regulate artificial intelligence (AI). The deal comes amid ongoing legal battles between parents, school districts, and states against social media companies over the alleged harmful impact of their products on children.
Senator Cantwell criticized the amendment stating, "The Blackburn-Cruz amendment does nothing to protect kids or consumers. It’s just another giveaway to tech companies." She argued that the provision would offer AI and social media companies new protections against litigation and state regulation.
The amendment could compel states to accept a $500 million allocation of BEAD funds under conditions set by Secretary of Commerce Howard Lutnick. He could deny funding unless states include it in their broadband plans, effectively forcing them into compliance with the moratorium.
Critics argue that this moratorium will hinder efforts to protect children from AI-assisted harms. Pending lawsuits against social media firms for allegedly addictive algorithms could be impacted as states would need to prove regulations do not impose an undue burden on tech companies.
Moreover, the amendment proposes exemptions for certain state laws but critics say its broad language might preempt existing regulations like robocall laws. These regulations have historically prohibited automated dialing systems without consumer consent.
Several existing cases and legislative proposals aimed at protecting children online may be affected by this AI moratorium. Lawsuits currently in progress involve allegations against platforms like Meta, TikTok, and Snapchat for promoting harmful content or fostering addiction among young users.
Proposed state laws targeting harmful AI chatbot interactions with minors could also be stalled if the moratorium takes effect. Various states are considering legislation requiring disclosures when interacting with AI systems or prohibiting access for recreational purposes by minors.
Additionally, state-level governance laws regulating AI models and decision systems may face preemption under this amendment. States such as California, Colorado, Utah, Maine, and Louisiana have enacted various transparency and disclosure requirements related to AI usage.
There is concern that preempting laws governing rent-setting algorithms could lead to higher prices for consumers. Similarly, restrictions on using AI-generated content in political ads might not be enforceable if they don't carry criminal penalties.
Finally, while many privacy laws contain provisions addressing automated decision-making processes such as profiling opt-outs or risk assessments related to data processing activities involving AI systems—these too might see enforcement challenges under the proposed moratorium framework.
Cantwell's opposition highlights significant concerns about how this legislative move might undermine consumer protection efforts across multiple sectors where artificial intelligence plays an increasingly prominent role.
