FPF Unveils Report on Emerging Trends in U.S. State AI Regulation

Today, the Future of Privacy Forum (FPF) launched a new report—U.S. State AI Legislation: A Look at How U.S. State Policymakers Are Approaching Artificial Intelligence Regulation— analyzing recent proposed and enacted legislation in U.S. states. As artificial intelligence (AI) becomes increasingly embedded in daily life and critical sectors like healthcare and employment, state lawmakers have begun crafting regulatory strategies to promote its opportunities while addressing its heightened risks. This report by FPF delves into the trends of these legislative efforts, examines core questions and issues, and offers key considerations for policymakers as they navigate the complexities of AI policy.

The report primarily focuses on ‘Governance of AI in Consequential Decisions,’ a legislative framework most frequently adopted by lawmakers, which applies to a broad range of entities and industries, and offers the most comprehensive approach to mitigating specific AI risks across various proposals and laws. The report also discusses alternative approaches focused on particular technologies, such as generative artificial intelligence and frontier or foundation models.

In this Report, we highlight the following: 

• State lawmakers are primarily focusing on governing AI used in consequential decisions that significantly impact individuals’ livelihood and life opportunities. 
• A key goal is to mitigate the risk of algorithmic discrimination, either by prohibiting AI systems with identified discriminatory risks or by establishing a duty of reasonable care to protect consumers from such discrimination. 
• Most frameworks create role-specific obligations, including separate developer and deployer requirements for transparency, risk assessment, and AI governance programs. 
• Common consumer rights around AI include rights of notice and explanation, correction, and to appeal or opt-out of automated decisions. 
• Alternatively, some lawmakers utilize a technology-specific approach to address novel risks posed by generative AI or frontier or foundation models.

This report is based on FPF’s analysis of key bills introduced in 2023 and 2024 (detailed in Supplementary Content), as well as our engagement with state policymakers. It also incorporates insights from civil society groups, businesses, and technical experts, whose diverse perspectives have been crucial in shaping a comprehensive examination of the nuances and challenges in advancing AI regulations.

The emerging trends highlighted in the report point to a collaborative movement toward an interoperable framework, where consistent definitions and principles are important for supporting business compliance, safeguarding individual rights, and ensuring regulatory clarity.