Senators voted overwhelmingly in the early morning hours today to drop the proposed pause on state AI laws that would have dissuaded state lawmakers from regulating artificial intelligence at the local level for the next five years. This latest move opens the door for states like California, New York, Colorado, Illinois, and more to regulate the use of AI in the workplace. Today’s 99-1 vote will clear a path for more laws to be passed in states across the country and almost certainly lead to compliance headaches for multistate employers given the impending regulatory patchwork. What should you do to prepare?

Quick Background

• Original Proposal: The House passed a sweeping proposal to impose a 10-year moratorium on state-level laws regulating AI on May 22 as part of the budget package. Read our summary here.
• Senate Turns Ban into Pause: Senate leaders veered and introduced a revised proposal on June 5 that would have merely blocked states from receiving federal tech funding if they regulated AI in the next decade. Read our summary here.
• Trimmed to 5 Years: Negotiations over the past weekend led the Senate to trim the pause window to five years, and also created exceptions allowing states to regulate copyright issues and children’s safety. Read our summary here.

What Happened?

Shortly after 4:00 this morning, the Senate voted 99-1 (with retiring Sen. Thom Tillis (R-NC) the lone no-vote) to completely jettison the AI pause from the budget bill. The quick reversal is a bit of a surprise given that the measure was supported by:

• AI Czar David Sacks
• White House technology adviser Michael Kratsios
• Commerce Secretary Howard Lutnick
• Senate Commerce Chair Sen. Ted Cruz (R-TX)
• Silicon Valley tech leaders

What's Next, and What Should You Do?

Find out here!