Source: Brownstein Hyatt Farber Schreck

Brownstein Hyatt Farber Schreck explains that after the US Senate removed a proposed moratorium on state and local AI regulations from the “One Big Beautiful Bill” (H.R.1), states retain full authority to regulate AI. This decision allows states such as California, Colorado, New York, and Texas to continue advancing AI laws without federal interference.

In 2025, all 50 states introduced AI-related legislation, with over half enacting laws addressing AI rights, protections for minors, and transparency in AI decision-making. Businesses must continue to manage compliance across a complex and evolving patchwork of state laws. While federal preemption efforts may arise in the future, states currently lead AI regulatory initiatives amid fragmented lobbying efforts.