Federal Framework, Not Patchwork of State Rules, Best Way to Foster AI Potential

The California Chamber of Commerce has joined the U.S. Chamber and a large coalition of chambers of commerce across the country to promote a federal framework on artificial intelligence (AI) development and adoption.

AI technologies, especially those with generative capabilities, have recently entered the public consciousness and have brought a new age of possibility for businesses and workers, with the potential to solve some of society’s most pressing challenges.

Letter to Leaders

In an open letter to state leaders, the coalition pointed out that although AI is developing quickly, a patchwork of state-level proposals to regulate artificial intelligence could slow realization of its benefits and stifle innovation by making compliance complex and onerous, especially for small businesses that stand to benefit the most from the productivity boosts associated with AI.

A federal framework, the coalition stated, is the best option to provide American businesses with the certainty they need to invest in AI development and adoption.

“While there are roles for states to promote adoption of AI within schools, businesses, and government entities, the federal government should take the lead in developing a comprehensive framework for regulating AI,” the coalition said.

Ways States Can Help

The coalition also urged state leaders to embrace the benefits of AI for their states, and to study whether legal gaps exist before pushing for new regulatory frameworks. States should assess existing laws to identify those that already protect consumers from harm and that work as well for AI as for other technologies.

States also should identify AI use cases that can make government more efficient and improve service delivery and constituent engagement.

Finally, the coalition said, states should consider how to strengthen support for computer science education and digital skilling initiatives to ensure that U.S. businesses can attract employees prepared to use AI technologies to improve their professional experience and increase their productivity.

“Artificial Intelligence presents an opportunity for U.S. businesses to continue to lead the world in innovation, opportunity, and economic development in a way that will be critical for America’s future. It is vital that governments at all levels set policies that will inspire leadership and unleash the full potential that AI offers,” the coalition stressed.

Staff Contact: Ronak Daylami

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Ronak Daylami, an experienced attorney, joined the California Chamber of Commerce in March 2022 as a policy advocate specializing in privacy issues. She came to the CalChamber policy team from Nielsen Merksamer, where she served as senior counsel in the firm’s government law section specializing in privacy issues, state regulation of business practices, consumer protection, and legislative process. Daylami previously worked for nearly 10 years in the Capitol, most recently as the chief consultant of the Assembly Privacy and Consumer Protection Committee, where she provided expertise on privacy, cybersecurity, consumer protection, and deployment of technology by state government, as well as counsel to the committee chairman during the negotiations and passage of the California Consumer Privacy Act. She earned a B.A. in political science and minored in English at the University of California, Berkeley, and a J.D. from University of California, Hastings College of the Law, where she was a senior articles editor for the Constitutional Law Quarterly. See full bio.