AI Regulations in States Shift to Pro-Innovation, Not Risk Mitigation

Signs are emerging that states are taking a more pro-innovation focus in their artificial intelligence (AI) regulations and away from the stricter EU-style legislation that doubles down on reining in risks, according to think tank R Street Institute.

Year to date, state legislators have introduced more than 900 bills related to AI, which is a record pace, wrote Adam Thierer, resident senior fellow of technology and innovation at R Street, in an opinion piece.

Thierer pointed to Virginia and Texas as states rejecting the stricter norms of the EU AI Act for a pro-growth and innovation stance.

This week, Virginia Gov. Glenn Youngkin vetoed HB 2094, dubbed the “High-Risk Artificial Intelligence Developer and Deployer Act.” He said the bill “would harm the creation of new jobs, the attraction of new business investment, and the availability of innovative technology.”

A week and a half earlier, Texas lawmakers unveiled a “significantly” revised version of the “Texas Responsible AI Governance Act.”

The new version of HB 149 removes many of its more restrictive provisions in favor of a lighter regulatory touch, Thierer wrote. The revised Texas bill scrapped the focus on algorithmic discrimination in high-risk cases and instead more broadly targets AI systems, according to Pluribus News.

Meanwhile, Colorado, which passed its own sweeping AI law last year, has faced backlash from industry groups saying it is too “rigid and vague” while consumer advocates believe it doesn’t go far enough, according to law firm Baker Donelson. The law could see “serious retooling,” they said.

Read more: AI Regulations: Texas’ Sweeping AI Bill and the Vatican’s Policy

AI Essential to Manufacturing

The National Association of Manufacturers (NAM) said AI is “integral” to modern manufacturing, in comments submitted to the White House Office of Science and Technology Policy for the U.S. AI Action plan.

NAM said it is the largest manufacturing association in the U.S., whose members employ 13 million Americans with average pay of over $100,000.

The group said manufacturers “enthusiastically” embrace President Trump’s pro-growth stance in AI because the technology is a “game-changer.”

For example, sensors embedded into manufacturing equipment would collect and analyze large amounts of data to yield insights for optimal production.

“This means more efficient shop floor operations, optimal equipment maintenance, enhanced quality of outputs, better cost control and more sustainable production processes,” the group said.

AI also can alert operators in real time to mistakes and dangers, enhancing worker safety. The technology can help manufacturers as well with their labor shortage — they had 428,000 unfilled positions as of December 2024.

NAM recommends four key actions:

Modernize regulatory frameworks: Direct federal agencies to review and update outdated regulations to accommodate AI technologies.

Context-specific AI regulation: Recognize that AI systems vary by use case and ensure that regulations reflect that nuance.

Transparency standards: Collaborate with the National Institute of Standards and Technology (NIST) to create best practices for AI developers to explain how their systems are trained and built, helping companies defend their AI use to regulators.

Balanced compliance: Create rules that encourage AI adoption while avoiding burdensome compliance that could stifle innovation.