stakeholders who answered three separate requests for information. In doing so, it identified five principles that should be at the core of AI regulation: 1. Efficiency: Existing laws and regulations must be considered, with a focus on filling in gaps to address new challenges.
2. Collegiality: Federal interagency collaboration is essential, given AI’s complex and rapidly evolving nature. A coordinated strategy enables agencies to leverage their expertise and address the most pressing issues within their domains.
3. Neutrality: Laws must be tech neutral, focusing on applications and outcomes rather than the technology itself. New laws should address gaps, protect rights and build public trust while favoring industry-specific guidance over a one-size-fits-all approach.
4. Flexibility: Laws should support risk assessment and innovation led by the private sector. Non-binding approaches like soft law and best practices developed by experts, civil society, and government will provide the flexibility needed to keep pace with rapid technological change.
5. Proportionality: Policymakers should address legal gaps with a risk-based approach, ensuring balanced and proportionate regulation.
Staying Ahead of Global Competition As legislators consider how to approach AI domestically,
they must also consider the competitive threats American businesses are facing from other countries that are investing heavily in the technology. Disjointed regulation at home, Richards argued, will not only hinder U.S. innovation but also its position as a global leader. “We are in a strategic race with China when it comes to artificial intelligence,” he warned. “That 50-state patchwork is going to be a burden on businesses as they’re trying to compete. Not having that federal framework puts us at a disadvantage internationally as well.” A Wall Street Journal article from July 2025 noted that China is quickly eroding America’s lead in the global AI race. While not able to rival the United States’ advantages in semiconductors, research and access to financial capital, Chinese companies such as DeepSeek are already gaining traction by offering comparable performance at much lower prices — the same strategy that has been effective at making inroads into many other industries.
20 FEDA News & Views
Increased Treat to Intellectual Property and Sensitive Data
Business concerns with AI go well beyond regulatory considerations. The more widely AI is used, the more frequently AI companies wind up as defendants in litigation. Whether it be authors, publishers, artists, or music labels, there are dozens of lawsuits winding their way through the courts right now as individuals and businesses aim to protect their copyright material from being compromised by AI or used as training data. One of the most prominent lawsuits was filed in June, when Disney and Universal sued Midjourney, alleging that the AI image generation startup was a “bottomless pit of plagiarism” due to its ability to mimic artistic styles and replicate well-known characters. While AI legal proceedings of this magnitude may not be the norm, it does speak to the changing landscape that companies of all sizes must navigate when using AI to improve their operating efficiency and customer experience. The advantages created by AI come with potential risks, such as proprietary content, trade secrets and customer data being ingested and reproduced without licensing.
Te Road Ahead AI is evolving exponentially, often more quickly than
laws and regulatory agencies can react. “Advancements in artificial intelligence are coming rapidly, with new model releases arriving quarterly at this point,” Richards observed. “You may pass a law that will quickly become out of date based on where the technology is headed.” From the perspective of business advocacy groups like the U.S. Chamber, lawmakers must resist policies that would choke advancement through fragmented AI overregulation. Instead, legislators should commit to a unified, risk-based federal framework. Such an approach would provide regulatory clarity while better balancing the need to implement safeguards with giving businesses and AI developers the room to innovate. Competitors across the entire world are working to push AI technology forward and implement it in new and revolutionary ways. For American businesses, the stakes could not be higher: either policymakers craft thoughtful, adaptable rules that encourage responsible growth, or they watch opportunity migrate to the countries that do.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56
