Big Tech and AI: The Complex Legislative Battle in Washington

Big Tech and the Quest for Federal AI Legislation

For several months, lobbyists from major tech companies, often referred to as "Big Tech," have been active in Washington, seeking federal legislation on artificial intelligence (AI). Their goal is to establish a national law that would harmonize AI regulations across the United States, thereby replacing the current patchwork of state regulations. This approach, known as "preemption," would simplify the regulatory framework for companies operating in multiple states. However, this initiative faces significant political hurdles, particularly the prospect of a Congress dominated by Democrats after the midterm elections, who may be less inclined to collaborate with Big Tech interests.

Child Safety: A Related but Distinct Issue

Recently, the White House announced its support for a set of laws aimed at enhancing online safety for children, an initiative backed by Republican Senator Marsha Blackburn. Blackburn is the co-author of the Kids Online Safety Act (KOSA), which aims to protect children from online dangers. While the issue of online child safety intersects with AI, it is just one aspect among many challenges that comprehensive AI legislation should address, such as the safety of advanced models, algorithmic discrimination, and the environmental impact of technologies.

Confusion and Legislative Divergence

The situation became more complicated when the White House failed to inform House Republicans of its intention to support Blackburn's version of KOSA as part of a broader preemption legislative package. This omission caused confusion among supporters of both policies. Indeed, there are significant differences between the strict Senate version and the more lenient House version, led by Steve Scalise. These differences add to the complexity of the legislative debate.

The "Four Cs" and Republican Pressure

Former President Donald Trump has expressed his support for an AI preemption law, prompting the Republican Party to seek a compromise. Mike Davis, an influential lawyer and Trump ally, insists that any legislation must respect the "Four Cs": children, conservatives, creators, and communities. The current version of KOSA addresses the "children" requirement, but Davis wants all values to be considered. According to him, there is no chance that AI preemption will be adopted if it does not address these four essential values.

A Tight Legislative Timeline

Time is running out for Big Tech, which must decide whether to prioritize federal AI preemption or immunity from the "duty of care" imposed by KOSA. With a busy legislative calendar and general elections approaching, the window for passing legislation is narrow. If Democrats take control of a chamber, they may choose to delay any collaboration, making the future of this legislation uncertain.

The Challenges of Reconciling Legislative Versions

Passing KOSA involves reconciling the differences between the House and Senate versions. The Senate version imposes a "duty of care" on tech companies, requiring them to take preventive measures to protect young users. This responsibility would also extend to AI companies. However, the House version, led by Scalise, has softened this provision, angering child safety advocates. The House's exclusion from White House discussions has been notable for observers, highlighting internal tensions within the Republican Party.

Political Stakes and the Role of Democrats

Even if Trump manages to align House Republicans, another challenge remains: the Democrats in Congress. They learned of Blackburn's negotiations with the White House at the same time as House Republicans. Although the Senate KOSA was co-sponsored by Democratic Senator Richard Blumenthal and passed by a wide majority, Democrats were unaware that their legislation would now be tied to the controversial goal of AI preemption. An AI policy advocate noted that if Blackburn and the White House consider a standalone bill, it will need to pass through the Senate, requiring 60 votes for adoption, which implies Democratic support.

A Busy Legislative Calendar

The legislative calendar is already saturated with urgent issues such as the renewal of FISA, an immigration crackdown package, increased defense spending for Trump's war with Iran, a bill on cryptocurrency market structure, accessibility measures, and the controversial SAVE America election bill. Additionally, regular budgetary items like Medicaid also occupy significant space. With a month and a half before the summer recess and the general election season, the time to pass legislation on AI and child safety is extremely limited.

Difficult Choices for Big Tech

Linking preemption and KOSA presents Big Tech with a difficult choice: do they want federal AI preemption more than they want immunity from the "duty of care"? And they do not have much time to make this choice, noted a Republican tech lobbyist, especially if Democrats take a chamber. "After the elections, what incentive would Democrats have to support anything? Like, why wouldn't they say, 'Go screw yourselves, we're going to do our thing in the new Congress?' I'm deeply skeptical."

Uncertain Prospects

Austin Carson, former head of government relations at Nvidia and founder of SeedAI, a nonprofit focused on increasing access to AI for local communities, is skeptical about the success of this marriage of convenience between KOSA and preemption. "I can't imagine a scenario where [this bill] would move forward," he said. "I can't imagine it."