AI Application and Implementation Tripping Over US State-based Hurdles

That hamstrings businesses wishing to maximise AI technologies and innovations internationally and across local borders.

Yahoo Finance reports that in Utah, for instance, legislators are pondering whether select companies should disclose non-human interaction with customers. Connecticut lawmakers are considering regulations for lesser transparency regarding so-called “high-risk” AI applications.

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There are reportedly 30 states reviewing proposed or approved laws that affect the use and design of AI technologies in some way or another. These rules aim to protect minors or data disclosures, limit favouritism, and safeguard people against AI-generated resolutions in healthcare, housing, and labour issues. Yahoo Finance, Goli Mahdavi, a lawyer at Bryan Cave Leighton Paisner, said:

It’s really just a mess for business. It’s just a lot of uncertainty.

Experts believe this uncertainty stems from a jumble of separate state laws aiming to regulate a national conundrum and lay the blame at the doorstep of the White House for the lack of a federal directive. The European Union (EU) developed and accepted the AI Act, while China’s AI regulations focus on deepfake online content and news.

Based on available data and analyses, the AI market is poised to achieve a value of more than $305bn in 2024. Analysts further predict the sector’s annual growth rate will exceed 15%. On a global scale, the US AI market is the largest.