US AI developers would be subject to data privacy obligations applicable in federal court under a wide legislative proposal disclosed recently by the US senate Marsha Blackburn, R-Tenn.
About the proposal
Beside this, the proposal will create a federal right for users to sue companies for misusing their personal data for AI model training without proper consent. The proposal allows statutory and punitive damages, attorney fees and injunctions.
Blackburn is planning to officially introduce the bill this year to codify President Donald Trump’s push for “one federal rule book” for AI, according to the press release.
Why the need for AI regulations
The legislative framework comes on the heels of Trump’s signing of an executive order aimed at blocking “onerous” AI laws at the state level and promoting a national policy framework for the technology.
In order to ensure that there is a least burdensome national standard rather than fifty inconsistent State ones, the directive required the administration to collaborate with Congress.
Michael Kratsios, the president's science and technology adviser, and David Sacks, the White House special adviser for AI and cryptocurrency, were instructed by the president to jointly propose federal AI legislation that would supersede any state laws that would contradict with administration policy.
Blackburn stated in the Friday release that rather than advocating for AI amnesty, President Trump correctly urged Congress to enact federal standards and protections to address the patchwork of state laws that have impeded AI advancement.
Key highlights of proposal:
- Mandate that regulations defining "minimum reasonable" AI protections be created by the Federal Trade Commission.
- Give the U.S. attorney general, state attorneys general, and private parties the authority to sue AI system creators for damages resulting from "unreasonably dangerous or defective product claims."
- Mandate that sizable, state-of-the-art AI developers put procedures in place to control and reduce "catastrophic" risks associated with their systems and provide reports to the Department of Homeland Security on a regular basis.
- Hold platforms accountable for hosting an unauthorized digital replica of a person if they have actual knowledge that the replica was not authorized by the person portrayed.
- Require quarterly reporting to the Department of Labor of AI-related job effects, such as job displacement and layoffs.
The proposal will preempt state laws regulating the management of catastrophic AI risks. The legislation will also mostly “preempt” state laws for digital replicas to make a national standard for AI.
The proposal will not preempt “any generally applicable law, including a body of common law or a scheme of sectoral governance that may address” AI. The bill becomes effective 180 days after enforcement.
