Oversight gap raises concerns
The moratorium would create an unprecedented situation: rapidly evolving AI technology would operate without state-level guardrails during what may be its most transformative decade.
“The proposed decade-long moratorium on state-level AI regulations presents a double-edged sword,” said Abhivyakti Sengar, practice director at Everest Group. “On one hand, it aims to prevent a fragmented regulatory environment that could stifle innovation, on the other hand, it risks creating a regulatory vacuum, leaving critical decisions about AI governance in the hands of private entities without sufficient oversight.”
The proposed legislation includes specific exceptions. According to the bill text, states would still be allowed to enforce laws that have “the primary purpose and effect of which is to remove legal impediments to, or facilitate the deployment or operation of, an artificial intelligence model, artificial intelligence system, or automated decision system.”
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