Jon Potter is a Accomplice and leads the State-Degree AI Apply at RXN Group. He’s an skilled lawyer, lobbyist, and communicator, has based and led two business associations and a client group, and consulted many industries and organizations on legislative, communications and difficulty advocacy challenges. Jon based the Digital Media Affiliation, Fan Freedom, and the Utility 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 guide, 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 instances, 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, At this time Present, and 60 Minutes.
Are you able to present an outline 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 development is quantity. 445 AI payments have been launched throughout 40 states, and we anticipate it will proceed in 2025.
A second development is a constant dichotomy—payments about authorities use of AI have been typically optimistic, whereas payments about AI typically and personal sector use of AI have been skeptical and fearful. Moreover, a number of states handed payments creating AI “process forces,” which at the moment are assembly.
What are the principle issues driving state legislators to introduce AI payments, and the way do these issues differ from state to state?
Many legislators need authorities companies to enhance with AI – to ship higher providers extra effectively.
Amongst skeptics, matters of concern embody fraudulent and abusive “deepfakes” associated to elections, artistic arts, and bullying; algorithmic discrimination; concern of AI-influenced “life essential” choices and resolution processes; private privateness and private information use; and job displacement. Some issues will be addressed in very particular laws, corresponding to Tennessee’s ELVIS Act and California’s political deepfakes prohibition. Different issues, corresponding 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 imagine that at the moment’s social media and digital privateness challenges may have been mitigated by prophylactic laws, so they’re speeding to go legal guidelines to resolve AI issues they concern will develop. In fact, it’s very laborious to outline clear compliance steering 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 great instance of that is the federal legal guidelines that govern makes use of of well being, monetary, and scholar training information, however don’t regulate computer systems, servers, or cloud computing. By not regulating multipurpose instruments corresponding to information storage and information processing applied sciences (together with AI), the legal guidelines tackle actual dangers and outline clear compliance guidelines.
It’s necessary that legislators hear from a variety of stakeholders earlier than passing new legal guidelines. Headlines counsel that AI is dominated by large corporations investing billions of {dollars} to construct terribly highly effective and threat fashions. However there are literally thousands of small and native corporations utilizing AI to construct recycling, office bias, small enterprise lending, and cybersecurity options. Authorized Help organizations and native nonprofits are utilizing AI to assist underserved communities. Lawmakers should be assured that AI-skeptical laws doesn’t shut down small, native, and public-benefit AI exercise.
Out of your expertise, what are probably the most important impacts that current 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 current AI payments as a result of only a few current payments have change into regulation and the brand new legal guidelines usually are 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 cut back fraudulent and legal exercise, and hopefully gained’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 can be efficient no matter whether or not AI is utilized by alleged dangerous 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 frequent pitfalls or challenges that state legislators face when drafting AI-related payments? How can these be averted?
It’s all about training – taking the time to seek the advice of many stakeholders and perceive how AI works in the true world. Laws based mostly on concern of the unknown won’t ever be balanced, and can all the time inhibit innovation and AI for good. Different nations will fill the innovation void if the US cedes our management because of concern.
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 good, sad, and motivated founders who expressed their displeasure in crisp, efficient, testimony and the media – and have been heard.
Equally in California, founders of small AI-forward corporations testified passionately within the legislature and related with the media to precise pressing concern and disappointment about well-intended however terribly overbroad laws. LIke their counterparts in Colorado, these founders have been non-traditional, extremely motivated, and really efficient.
How do you determine and interact 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 will affect 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 necessary 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 types. Whether or not it’s assembly with legislators in-person or by video, sending a letter or e-mail, or talking with the media – every of those is a technique to make your voice heard. What’s most necessary is readability and ease, and telling your individual story which is what you recognize greatest. Completely different state legislatures have totally different guidelines, processes, and norms, however virtually all legislators are wanting to be taught and need to hear from constituents.
Thanks for the good interview, readers who want to be taught extra ought to go to RXN Group.
