US House lawmakers release draft bill to prohibit state AI rules

By Courtney Rozen and David Shepardson

WASHINGTON, ‌June 4 (Reuters) - A bipartisan ​pair of ​U.S. House lawmakers released draft legislation on Thursday that would prohibit states from regulating the development of artificial intelligence models, a move praised by tech firms but criticized by consumer ‌rights advocacy groups.

The draft legislation, released by Democrat Lori Trahan and Republican Jay Obernolte, would ⁠bar states from laws “targeting artificial intelligence model development," meaning states would not be allowed to pass laws requiring models undergo testing before ‌AI firms release them to the ‌public, according to the draft.

But the draft also said it would not bar states from regulating how AI technology is used.

It aims to create a "national framework that protects Americans, supports innovation, and ensures the ​U.S leads the world in shaping this technology," the pair said in a joint statement.

"We are releasing this draft to hear from stakeholders, experts, and the public so we can strengthen the legislation before it ⁠is formally introduced," Obernolte said in a statement.

Congress has struggled for years to pass legislation to address AI safety concerns.

Public Citizen, a consumer advocacy ​group, criticized the bill, saying it would leave "oversight largely to a federal government that has repeatedly failed to pass meaningful AI protections."

The group has largely advocated for urgent ​state-level AI regulation to protect Americans amid a lack of ‌federal laws.

It also added, the "bill does not address algorithmic discrimination, housing discrimination, employment discrimination, consumer fraud, youth mental health harms, AI companions, deepfake exploitation, and growing market concentration."

The ⁠Information Technology Industry Council, which represents major tech firms, praised the bill. "Congress must set a national standard that enables responsible AI development, deployment, and adoption across the American economy," the group said.

In March, the White House urged lawmakers to enact legislation ⁠to pre-empt state AI rules and earlier this week President Donald Trump signed an order asking leading AI developers to voluntarily ​submit their most capable models for government cybersecurity tests before releasing them to the public.

U.S. agencies would get up to 30 days to test the models before they are released to organizations outside the government, according to the order. It also ‌directs the agencies to emphasize bolstering cyber defense across government.

Trump in December said he would withhold federal broadband funding from states whose laws to regulate AI are judged ‌by his administration to be holding back American dominance in the technology.

The AI industry has been a powerful profit driver ⁠for the tech sector in recent years, ‌propelling chipmaker Nvidia to become the ​world's largest company, while tech behemoths Amazon.com, Meta Platforms, Alphabet and Microsoft pour billions of dollars into the sector.

(Reporting by Courtney Rozen and David Shepardson, Editing by Franklin Paul and ‌Aurora Ellis)

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