As federal lawmakers remain divided and slow to enact comprehensive artificial intelligence regulations, several U.S. states are moving to fill the regulatory void by developing their own frameworks to address AI safety and transparency. Massachusetts, California, New York, Illinois, and Virginia have emerged as key players in this effort, with legislative and executive actions aimed at mitigating the risks posed by rapidly advancing AI technologies.
In Massachusetts, state legislators are advancing proposals as part of an economic development bill that would impose AI regulations on companies generating more than $500 million in annual AI-derived revenue. The proposed measures include requirements for transparency, safety planning, and third-party audits to verify compliance. Independent verification organizations would also be established to assess potential catastrophic risks associated with AI applications. State Senator Barry Finegold, a leading advocate of the initiative, emphasized the importance of state-level action, stating that while federal regulation is preferable, states should proceed if Washington fails to act.
The Massachusetts effort reflects growing concerns about the lack of cooperation and trust between major technology companies and between the U.S. and China over AI governance. Some industry leaders have opposed state-level oversight, utilizing strong lobbying efforts to resist new rules. However, proponents argue that the stakes are too high to rely solely on self-regulation. Andrew Freedman, CEO of the nonprofit group Fathom, which supports stringent AI safety policies, highlighted Massachusetts’ potential to become a hub for AI oversight expertise due to its concentration of universities and technology talent.
Finegold compared current calls for AI regulation to historic safety measures introduced in the automotive industry. He cited the initial resistance to seat belt laws, which were once seen as encroachments on personal freedom but ultimately improved public trust and saved lives. “Every generation faces new technology, and every generation must decide how to use it safely,” Finegold said, underscoring the importance of balanced regulation that promotes innovation while protecting society.
California has already enacted laws requiring AI companies to report safety protocols and is exploring stronger enforcement mechanisms, including the potential for embedding independent representatives within AI firms. Governor Gavin Newsom recently issued an executive order supporting these measures. Meanwhile, New York, Illinois, and Virginia have passed transparency and safety laws addressing AI’s risks.
Experts note that while state-level initiatives can lead to a fragmented regulatory landscape, they could also serve as a foundation for broader, quasi-national standards in the absence of federal legislation. Juniper Katz, an assistant professor of public policy at the University of Massachusetts, observed that states like California have had outsized influence on policies such as climate change regulation, suggesting a similar potential impact on AI governance.
As AI technologies continue to develop at a rapid pace, state governments appear poised to play a critical role in crafting rules that safeguard public interests. Ensuring diverse stakeholder involvement—from educators to artists—will be essential to creating AI regulations aligned with societal values and capable of preventing existential risks.