What does the ‘Big Beautiful Bill’ mean for the future of AI in the US? VERIFY

CHARLOTTE, N.C. — As the Trump administration’s “Big, Beautiful Bill” advances to the Senate, WCNC Charlotte’s VERIFY team is digging deeper into what the legislation could mean for the future of artificial intelligence regulation at the state level.

The bill contains a provision in Section 43201 that would allocate $500 million over the next decade to “modernize and secure federal information technology systems using AI.”

What does this mean for state legislation?

If passed, the legislation could block states from enforcing their own AI-related laws, many of which are already in the works.

“Any time the federal government tells the states what they can and cannot do, that’s a component of federalism,” Bitzer said. “Oftentimes, that might get challenged in court by various states.”

Currently, there is no centralized federal oversight of AI in the United States, leaving states to craft and enforce their own policies. According to the National Conference of State Legislatures, at least 45 states — including North Carolina — have introduced AI-related bills in the 2024 legislative session.

This is not the first time the federal government has used legislation to push states toward uniform standards. Bitzer pointed to the 1984 decision to raise the national drinking age to 21 as an example.

“The federal government said states, ‘If you want federal highway funds for your interstate highways, you have to raise your drinking age from 18 to 21,’” Bitzer explained.

If the AI provision in the “Big Beautiful Bill” passes, Bitzer said states could respond through the courts.

“States can go into court and challenge any federal policy they disagree with,” he said. “Some states may say, ‘We want the power to oversee AI within our borders — we’re going to challenge this in federal court.’”

With more AI legislation expected in both statehouses and Congress, this battle over jurisdiction may only be beginning.

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