Tech giants face hurdles in stopping state AI rules

Big tech companies like Amazon, Google, Microsoft, and Meta are trying to use their growing influence to stop states from making their own rules for artificial intelligence (AI). They want to add a rule to a major tax bill that would block state AI laws for 10 years. This shows how much power these companies have in Washington, as they convinced some leaders to include this idea in the bill.

However, some Republican lawmakers are pushing back, making it harder for the tech industry to get what it wants. These lawmakers, along with others like Representative Marjorie Taylor Greene and Senators Marsha Blackburn, Ed Markey, and Elizabeth Warren, argue that states should keep their right to regulate AI. They worry that blocking state laws could leave people unprotected from AI’s risks, like privacy issues or harm to kids.

States have been active, with over 1,000 AI-related bills introduced in 2025, and 28 states passing at least 75 new laws. For example, Tennessee’s ELVIS Act protects musicians from AI misuse. Critics of the ban say states are key to testing new rules for fast-changing tech like AI.

Tech groups like TechNet, which includes Google and OpenAI, warn that different state laws could create confusion. Meanwhile, companies like Anthropic believe states should still play a role if federal rules are slow to come. This debate highlights the tension between tech innovation and the need for oversight to keep people safe.