The Latest AI Bill’s 5 Biggest Flaws
Any successful federal policy framework for AI should reflect an optimistic and light-touch approach to AI—not an approach that could burden entrepreneurship and hurt both consumers and innovators.
Senator Marsha Blackburn (R‑TN) has published a discussion draft of an AI bill that supposedly aims to codify President Trump’s vision for the nation to achieve AI dominance. She went so far as to title the bill, “TRUMP AMERICA AI Act.” But the truth is, this proposal represents a dramatically different approach that would heavily regulate the industry, hinder entrepreneurship, and restrict speech.
If such a proposal gains traction, it would represent a radical shift from the light-touch approach that the Trump administration’s AI Action Plan largely supports. The bill would instead insert the government into many aspects of regulating AI. (The AI Action Plan has been covered in previous work for those who wish to catch up on its core components.) The proposal isn’t the light-touch, pro-innovation approach that seeks to make America’s tech sector the leader in this global market but a kitchen sink of internet and AI regulation that could create more problems than it solves at a critical moment.
At 291 pages, the draft intends to cover what some have labeled the four Cs of AI policy: children, creators, conservatives, and communities. It includes the Kids Online Safety Act (KOSA) and NO FAKES Act in addition to myriad AI-specific provisions. Cato has covered many of these elements in the past. For example, Jennifer has written extensively on the concerns around speech and privacy in KOSA. And David Inserra has addressed the importance of a light-touch approach to AI governance when it comes to free expression, covering some of the issues implicated by the NO FAKES Act.
Analysis of the new and AI-specific aspects of the draft reveal that it is a poor path forward if the United States is going to lead on AI. While a few specific elements of the Trump administration’s AI Action Plan raise their own concerns, Senator Blackburn’s proposal would significantly shift the US away from the light-touch regulatory approach that has traditionally allowed it to flourish as a global leader in new technologies.
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