Scott Kosnoff Reacts to New Executive Order Preempting State AI Regulation in American Banker

Insurance partner Scott Kosnoff commented on a new executive order limiting the ability of states to regulate artificial intelligence in an article for American Banker.

The order, titled “Ensuring a National Policy Framework for Artificial Intelligence,” directs executive agencies to jointly prepare a legislative recommendation establishing a uniform federal policy framework for AI that preempts state AI laws. The order comes after several states, including California, Colorado, and Utah, have passed their own forms of AI regulations, such as requiring AI disclosures or laws to prevent algorithmic discrimination. Kosnoff noted that while a uniform federal regulation could be worth pursuing, there is no current federal framework, meaning the order prevents states from passing any meaningful AI safeguards. 

"Until Congress is able to come up with a sensible, middle-of-the-road framework for regulating AI, the states have no choice but to fill the gap," Kosnoff said. "Preempting state law first, in the absence of any federal standard, is dangerous and irresponsible."