Cruz Doesn’t See Immediate Need for Federal AI Law

Cruz said President Donald Trump and a Republican-controlled Congress have a chance to push forward on AI policies that contrast starkly with the Biden administration’s "European-style" regulation. Vice President J.D. Vance delivered a speech about AI in Paris on Tuesday, saying restrictions will “unfairly benefit incumbents” and could paralyze “one of the most promising technologies we have seen in generations.” The overlap of AI and privacy laws has been a consistent talking point for legislators at the federal and state level and compliance attorneys.

Olivia Zhu, a White House AI policy advisor under Biden, on Tuesday said it could be difficult for the Trump administration to develop a coherent AI strategy if it continues down the path of “dismantling” government entities designed to provide expertise.

Speaking at State of the Net, Zhu said Biden showed “tremendous policy leadership” when the former president issued his AI executive order, the “first comprehensive AI policy in the world.” Trump rescinded that AI EO and announced his AI action plan (see 2502060031). Zhu noted there’s currently no leader of the U.S. AI Safety Institute, an entity housed within the National Institute of Standards and Technology. U.S. AISI Director Elizabeth Kelly stepped down Friday. Zhu said having a public partner like the AISI for private development of AI “gives me comfort as a private citizen.” House Technology Subcommittee Chairman Jay Obernolte, R-Calif., on Tuesday announced plans to file a bill codifying “something like” the AISI (see 2502110024). Obernolte also said he’s in favor of a U.S. AI regulation preempting the state patchwork.

The U.S. should avoid a “European-style regulatory system that gives government bureaucrats prior approval of AI innovation,” said Cruz on Wednesday. “I can think of very few approaches that would be better designed to ensure that America loses the race for AI and is beaten by our competitors.” AI will be seen as one of the “sleeper issues” of the 2024 election because a Republican-controlled White House and Congress will result in creating policies that “maximize the chances of American leadership.”

State of the Net panelists on Tuesday discussed Vance’s speech at the AI summit in Paris. It marked a 180-degree shift from the Biden administration, said Abundance Institute AI Policy Head Neil Chilson, a former acting FTC chief technologist. While Biden wanted to lead the world on AI regulation, Trump wants to lead on innovation, said Chilson.

Europe is taking a permission-based regulatory approach to AI, said Incompas CEO Chip Pickering. And while China uses a government-controlled approach, the U.S. model should maximize an innovation effort led by private companies, said Pickering.

The EU AI Act states that the “right to privacy and to protection of personal data must be guaranteed throughout the entire lifecycle of the AI system.” According to the text, that means principles of data minimization and data protection by design and default, as set out in the general data protection regulation.

Senators who participated in last year’s AI working group, led by then-Senate Majority Leader Chuck Schumer, D-N.Y., said they’re expecting sector-specific legislation on AI. It was clear last year that the “best way to approach this was bill by bill” and “committee by committee,” said Sen. Mike Rounds, R-S.D. The working group remains in discussions, he said. Sen. Martin Heinrich, D-N.M., said he’s expecting legislative proposals soon. “There’s still a lot of interest from all of us who were involved.”