fast with americans Concerned About how AI could harm mental health, jobs and the environment, public demand Because regulation is increasing. If Congress remains paralyzed, only the states will act to keep the AI industry under control. According to the National Conference of State Legislatures, in 2025, state legislators introduced more than 1,000 AI bills and about 40 states enacted more than 100 laws.
Efforts to protect children from chatbots may inspire rare consensus. On January 7, Google and Character Technologies, a startup behind companion chatbot Character.AI, settle down Several lawsuits involving families of teenagers who committed suicide after interacting with bots. Just one day later, the Kentucky Attorney General sued Character Technologies, alleging that chatbots drive children to self-harm and other forms of suicide. OpenAI and Meta Face Lots of identical suits. More piles are expected this year. Without AI laws on the books, it remains to be seen how product liability laws and free speech principles apply to these new threats. “It’s an open question what the courts will do,” says Grimmelman.
While the litigation is ongoing, states will move to pass child protection laws that are exempt from Trump’s proposed ban on state AI laws. On January 9, OpenAI signed a deal with a former foe, child-protection advocacy group Common Sense Media. ballot initiative California has something called the Safe for Parents and Kids AI Act, which sets guardrails around how chatbots interact with children. The measure proposes to require AI companies to verify the age of users, provide parental controls and undergo independent child-safety audits. If passed, it could be a blueprint for states across the country that want to crack down on chatbots.
widely fueled feedback As against data centers, states will also try to regulate the resources needed to run AI. That means bills requiring data centers to report on their electricity and water usage and pay their own electricity bills. If AI begins to displace jobs on a large scale, labor groups could seek AI restrictions in specific occupations. Some states concerned about the destructive risks posed by AI may pass safety bills mirroring SB 53 and the RAISE Act.
Meanwhile, tech giants will continue to use their deep pockets to crush AI regulations. future leadershipA super PAC, backed by OpenAI Chairman Greg Brockman and venture capital firm Andreessen Horowitz, will attempt to elect candidates who support unfettered AI development to Congress and state legislatures. They will follow the crypto industry’s playbook for choosing partners and writing the rules. To combat this, a super PAC funded by public firstAn organization run by Carson and former Republican Congressman Chris Stewart of Utah will support candidates who advocate for AI regulation. We may also see a handful of candidates running Anti-AI populist platform.
In 2026, the slow, messy process of American democracy will continue. And the rules written in state capitals could dictate how the most disruptive technology of our generation evolves beyond America’s borders in the years to come.
