U.S. HOUSE REPUBLICANS have introduced a provision in their latest budget reconciliation bill that would prevent states and local governments from regulating artificial intelligence for the next 10 years. The clause was added during the HOUSE ENERGY AND COMMERCE COMMITTEE markup.

The provision states: “No state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems.”

In the music industry, rights organizations have expressed concern that the lack of enforceable regulation could result in unlicensed music being used to train AI systems. AI-generated music on digital streaming platforms could impact royalty distributions and the visibility of human musicians. It would make it harder for artists to control or profit from their work. It could also accelerate the flood of AI-generated music on digital streaming providers.

If enacted, this measure would override existing and pending state laws aimed at regulating AI technologies, including those that address transparency, bias audits, and data usage disclosures. States such as CALIFORNIA and NEW YORK have enacted or proposed legislation requiring AI developers to disclose data sources and conduct bias assessments.

OPENAI CEO SAM ALTMAN, testified before the U.S. SENATE, stating, “It is very difficult to imagine us figuring out how to comply with 50 different sets of regulations.”

A bipartisan group of state Attorney Generals have issued a letter against the proposal. PUBLIC CITIZEN, a nonprofit advocacy group, reported that nearly half of U.S. states have passed laws targeting AI-generated deepfakes in political campaigns.

The bill is scheduled for markup in the HOUSE. Its future in the SENATE remains uncertain due to procedural rules that may affect its inclusion.