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While the GOP’s “big beautiful bill” is now widely recognized as a disgusting abomination, it’s not just because of its savage cuts to the safety net or fiscal irresponsibility. It also has gems like a 10-year prohibition on state regulation of AI, which may have far-reaching consequences.
What happens if states can’t regulate A.I.?
It turns out this gift to Big Tech (and health insurers and would-be price fixers, etc) isn’t all that popular of an idea.
mashable.com
What happens if states can’t regulate A.I.?
Buried in the House budget bill is a provision about artificial intelligence that, at first, seems to mostly affect big tech companies. It bans state and local governments from regulating any algorithmic system for an entire decade.
Here are three big areas that could be immediately affected:
Automated decision-making in health care: Big hospital systems use algorithms to decide, for example, who gets a kidney. Cigna has faced legal action over claims that it has used an algorithm to automatically deny claims in bulk.
Colorado last year passed a bill that is, so far, the “farthest reaching” in promoting strong governance of A.I. in health care, said Michelle Mello, a professor of law and health policy at Stanford University. Mello acknowledged that the existing patchwork of health care A.I. regulation “is not standardized and it’s not awesome.” But if the tax bill provision halts all efforts completely, “that’s not great, either,” she said.
Surveillance pricing: The practice of using vast amounts of customer datato set prices, sometimes altering them for specific customers — think airlines, hotels and grocery stores — faces mounting scrutiny.
In California, State Assemblyman Chris Ward introduced a bill this year that would prevent businesses from using customer data to make algorithmic decisions that would change prices. Ward told DealBook that he is worried the federal bill might affect his legislation: “I can’t hit the pause button, waiting to see, for a whole other year, if something does or does not apply.”
Kids’ safety on social media: Gov. Kathy Hochul of New York signed a bill last year that aims to limit children’s access to algorithmic feeds on apps like TikTok and Instagram. And a new Florida law that broadly restricts teenagers’ access to social media (and has faced criticism and court challenges) indirectly regulates A.I., too, said Gaia Bernstein, a professor at Seton Hall University School of Law who studies addictive tech and social media.
It turns out this gift to Big Tech (and health insurers and would-be price fixers, etc) isn’t all that popular of an idea.

Poll: Banning state regulation of AI is massively unpopular
The One Big Beautiful Act would prohibit states from regulating AI, but voters really don't like the idea.
