experiences. To maintain pace with the speed of that adoption, legislative bodies around the country are moving quickly to regulate AI, with an emphasis on consumer protection, labor law and copyright concerns. As nations throughout the world move into uncharted territory, industry leaders are warning that the reactionary legislative frenzy that’s already seen more than 1,000 AI bills introduced in the United States may do more harm than good. The U.S. Chamber of Commerce has been among the loudest voices to urge caution by calling for a federal moratorium on AI regulation. The Chamber argues that A 50-state patchwork of inconsistent laws, the Chamber contends, would not only hamper innovation and force compliance burdens on small businesses but would also put the United States at a competitive disadvantage globally.
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Without a federal framework, artificial intelligence faces a patchwork of state laws that could hinder innovation and weaken U.S. competitiveness.
“The latest tracker I’ve seen showed that over 1,070 bills have been introduced on the state side,” said Michael Richards, executive director of policy at the U.S. Chamber of Commerce Technology Engagement Center. “All these bills have different definitions and different scopes, which makes it very, very hard for the mom-and-pop shops who don’t have compliance departments to understand what the rules and regulations are going to be, state to state.”
Importance of a Moratorium Back in June, the House Energy and Commerce
Committee proposed a 10-year moratorium on state AI enforcement in its budget reconciliation bill. While the Chamber endorsed the pause, it also supported an amendment from Sens. Ted Cruz (R-TX) and Marsha Blackburn (R-TN) that would have cut the moratorium down to five years. In the end, all versions of the moratorium language were removed during the vote-a- rama phase of the legislation that became the One Big Beautiful Bill Act.
By Ethan Gibble Contributing Writer
It was not the outcome the U.S. Chamber and other business advocacy groups had hoped for. “A 50-state patchwork is just going to be very unhelpful,” Richards said. “It’s going to burden businesses with compliance requirements and limit the ability to compete. We’ve done a lot of work on the Chamber side in continuing to call for a federal framework. The most important thing to us is giving the federal policymakers the time necessary to develop that framework.”
Fall 2025 17
s artificial intelligence (AI) continues to evolve rapidly, it is becoming even more deeply embedded in business operations and customer
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