Source: PYMNTS

The US Senate has reached a compromise to impose a moratorium on new state-level AI regulations, aiming to create a uniform federal framework for artificial intelligence oversight. The agreement is a key step toward advancing a major federal AI bill, which would preempt state laws and streamline compliance for businesses operating across the country.

Proponents argue that a patchwork of state regulations would create confusion, increase costs, and hinder AI innovation. The moratorium is intended to provide legal certainty and foster national standards as Congress works on comprehensive AI legislation.

Critics, however, warn that blocking states from enacting their own rules could leave important gaps in consumer protection and limit the ability to address local risks. The deal signals intensifying debate over how best to regulate AI at different levels of government in the United States.