Jon Potter is a Companion and leads the State-Stage AI Follow at RXN Group. He’s an skilled lawyer, lobbyist, and communicator, has based and led two trade associations and a shopper group, and consulted many industries and organizations on legislative, communications and difficulty advocacy challenges. Jon based the Digital Media Affiliation, Fan Freedom, and the Software Builders Alliance, was Government Vice President of the worldwide communications agency Burson-Marsteller, and a lawyer for a number of years with the agency of Weil, Gotshal, & Manges.
As each a shopper and advisor, Jon has overseen federal, multistate and worldwide advocacy campaigns and engaged lobbyists, communications companies, and regulation companies on three continents. Jon has testified in Congress and state legislatures a number of occasions, has spoken at dozens of conferences all through the U.S. and internationally, and has been interviewed on nationwide and native radio and tv information packages, together with CNN, Right now Present, and 60 Minutes.
Are you able to present an summary of the important thing traits in AI laws throughout states in 2024?
2024 has been a rare 12 months for state-level AI laws, marked by a number of traits.
The primary pattern is quantity. 445 AI payments had been launched throughout 40 states, and we count on it will proceed in 2025.
A second pattern is a constant dichotomy—payments about authorities use of AI had been typically optimistic, whereas payments about AI typically and personal sector use of AI had been skeptical and fearful. Moreover, a number of states handed payments creating AI “activity forces,” which are actually assembly.
What are the primary considerations driving state legislators to introduce AI payments, and the way do these considerations differ from state to state?
Many legislators need authorities companies to enhance with AI – to ship higher providers extra effectively.
Amongst skeptics, subjects of concern embrace fraudulent and abusive “deepfakes” associated to elections, artistic arts, and bullying; algorithmic discrimination; worry of AI-influenced “life vital” choices and determination processes; private privateness and private knowledge use; and job displacement. Some considerations may be addressed in very particular laws, comparable to Tennessee’s ELVIS Act and California’s political deepfakes prohibition. Different considerations, comparable to dangers of algorithmic discrimination and job displacement, are amorphous and so the legislative proposals are broad, non-specific, and of nice concern.
Some lawmakers consider that at present’s social media and digital privateness challenges may have been mitigated by prophylactic laws, so they’re speeding to cross legal guidelines to resolve AI issues they worry will develop. After all, it’s very onerous to outline clear compliance steerage earlier than precise issues emerge.
How can states craft AI laws that encourages innovation whereas additionally addressing potential dangers?
Laws can do each when it regulates particular use circumstances and dangers however not foundational multipurpose expertise. A superb instance of that is the federal legal guidelines that govern makes use of of well being, monetary, and scholar training knowledge, however don’t regulate computer systems, servers, or cloud computing. By not regulating multipurpose instruments comparable to knowledge storage and knowledge processing applied sciences (together with AI), the legal guidelines handle actual dangers and outline clear compliance guidelines.
It’s essential that legislators hear from a variety of stakeholders earlier than passing new legal guidelines. Headlines recommend that AI is dominated by large firms investing billions of {dollars} to construct terribly highly effective and threat fashions. However there are literally thousands of small and native firms utilizing AI to construct recycling, office bias, small enterprise lending, and cybersecurity options. Authorized Support organizations and native nonprofits are utilizing AI to assist underserved communities. Lawmakers have to be assured that AI-skeptical laws doesn’t shut down small, native, and public-benefit AI exercise.
Out of your expertise, what are essentially the most important impacts that latest AI payments have had on companies? Are there particular industries which have been extra affected than others?
We don’t but know the impacts of latest AI payments as a result of only a few latest payments have turn out to be regulation and the brand new legal guidelines should not but making a distinction. The broadest regulation, in Colorado, doesn’t take impact till 2026 and most stakeholders, together with the Governor and sponsor, anticipate important amendments earlier than the efficient date. The ELVIS Act in Tennessee and the California deepfakes legal guidelines ought to scale back fraudulent and prison exercise, and hopefully received’t inhibit parody or different protected speech.
With so many states stepping as much as legislate AI, how do you see the connection between state-level AI rules and potential federal motion evolving?
This can be a transferring goal with many variables. There are already a number of areas of regulation the place the federal and state governments co-exist, and AI is related to a lot of them. For instance, there are federal and state office and monetary providers discrimination legal guidelines which might be efficient no matter whether or not AI is utilized by alleged unhealthy actors. One query for legislators is why new laws or rules are wanted solely as a result of AI is utilized in an exercise.
What are the widespread pitfalls or challenges that state legislators face when drafting AI-related payments? How can these be prevented?
It’s all about training – taking the time to seek the advice of many stakeholders and perceive how AI works in the actual world. Laws based mostly on worry of the unknown won’t ever be balanced, and can at all times inhibit innovation and AI for good. Different international locations will fill the innovation void if america cedes our management as a consequence of worry.
Are you able to share examples of profitable advocacy that influenced AI laws in favor of innovation?
In Colorado, the Rocky Mountain AI Curiosity Group and AI Salon rallied builders and startups to have interaction with legislators for the primary time. With out lobbyists or insider consultants, these teams tapped right into a wellspring of sensible, sad, and motivated founders who expressed their displeasure in crisp, efficient, testimony and the media – and had been heard.
Equally in California, founders of small AI-forward firms testified passionately within the legislature and related with the media to specific pressing concern and disappointment about well-intended however terribly overbroad laws. LIke their counterparts in Colorado, these founders had been non-traditional, extremely motivated, and really efficient.
How do you determine and have interaction stakeholders successfully in state-level AI coverage battles?
Partly by speaking to individuals such as you, and spreading the phrase that laws has or will quickly be launched and should impression somebody’s livelihood, enterprise, or alternative. Legislators solely know what they know, and what they be taught by speaking to lobbyists and corporations they’re conscious of. It’s essential to have interaction within the course of when payments are drafted and amended, as a result of in case you’re not on the desk then you definately’re most likely on the menu. Each firm and group that’s constructing or utilizing AI ought to take part earlier than the legal guidelines and rules are written, as a result of after they’re written it’s often too late.
What are the best methods to speak the complexities of AI to state legislators?
Advocacy exists in lots of varieties. Whether or not it’s assembly with legislators in-person or by video, sending a letter or electronic mail, or talking with the media – every of those is a approach to make your voice heard. What’s most essential is readability and ease, and telling your personal story which is what finest. Completely different state legislatures have completely different guidelines, processes, and norms, however nearly all legislators are desirous to be taught and need to hear from constituents.
Thanks for the nice interview, readers who want to be taught extra ought to go to RXN Group.
