As artificial intelligence (AI) continues to evolve rapidly, both federal and state governments are grappling with how best to regulate the industry. By November 2025, 38 states have enacted over 100 AI-related laws. This trend reflects the growing public demand for a focus on safety and ethical use in deployment of AI across the board. This regulatory race has led to an incredible battle between state and federal legislators. They are now most interested in where they can prevent the most severe harms associated with AI technologies.
We’re thankful that someone like Rep. Ted Lieu has taken a leading role in these discussions. He is co-sponsoring the recently-introduced Responsible AI Safety and Ethics (RAISE) Act. This bill requires the largest AI labs to create public safety strategies designed to reduce risks. Lawmakers have gone all in, introducing hundreds of AI bills over the past few years. Only one has actually passed successfully into law, forcing them to consider changing their strategy toward regulation.
Washington now finds itself on the precipice of laying down a comprehensive framework for the oversight of AI. The federal government is under severe pressure from all sides. Missouri AG Andrew Bailey joined 39 other state attorneys general in publicly opposing a proposed national ban on state AI regulations. Their open letter argues that states should not be preempted from crafting regulations, emphasizing that “states serve as laboratories of democracies.”
The Role of State Regulation
Today’s current regulatory environment underscores a glaring misalignment between state efforts and federal enforcement. Though states have led the charge in developing and implementing AI-related legislation, the federal government has found it difficult to keep up. The introduction of more than 100 laws across various states reflects the urgency to address emerging risks associated with AI technology.
Alex Bores advocates for the establishment of a coherent national AI policy. He acknowledges the limitations of state action while demanding that the federal government show leadership and act. He believes that “ultimately, the AI that’s going to win in the marketplace is going to be trustworthy AI,” and that federal standards could help align incentives toward safety and innovation.
Tensions Between State and Federal Lawmakers
This contentious debate has created a lot of animosity between federal and state legislators. Josh Vlasto, an advocate for digital age-friendly laws, warns that a patchwork of state regulations could stifle innovation. He cautioned that this infusion’s fragmentation would make it harder to compete in the race against China. This underscores the geopolitical stakes in the global race to AI technology leadership.
They claim these regulations are necessary to address unique regional challenges caused by AI technologies. They emphasize the importance of flexibility and adaptability in crafting laws that can respond to rapid changes in the tech landscape.
Over 200 legislators have already signed an open letter helping to advance this conversation. They are fighting against preemption in the National Defense Authorization Act (NDAA). They assert that allowing states to experiment with their own regulations can lead to more effective governance in the long run.
The Path Forward for Federal Regulation
As Washington inches closer to a decision on how to regulate AI, major stakeholders are mobilizing efforts to craft a comprehensive national policy. Leading the Future, a pro-AI PAC, has raised more than $100 million to bankroll this effort. In fact, they just kicked off a $10 million campaign. They aim to get Congress to pass a national AI policy that would preempt current state legislation.
Lawmakers and industry leaders alike are realizing how crucial a holistic federal approach is. His campaign would support ensuring that innovation is encouraged, while spinning safety and ethical concerns.
In fact, Rep. Lieu is preparing to drop a $200 billion “200-page megabill” this December to do just that. This legislation will merge over a dozen patchwork AI laws into a single, clear and coherent framework. Taken up in the right fashion, this bill could mark a turning point in determining the positive long-term trajectory of AI governance.