Artificial Intelligence

Artificial intelligence is reshaping government operations, citizen protection, and business regulation—but governance remains unsettled. Federal agencies deploy AI for efficient services, while states enact new laws, creating tension in the regulatory landscape.

How Government Is Using AI

Federal and state agencies integrate AI, from chatbots answering questions to tools analyzing documents. Agencies appoint Chief AI Officers and adopt enterprise strategies. Tech giants sell AI services to the U.S. government for $1, as the Pentagon balances AI power with ethical principles. AI even reprograms traffic lights to curb speeding.

Regulating AI: Federal vs. State Battle

Federal policy favors deregulation, while multiple states enacted AI laws effective January 1, 2026, fragmenting oversight. The federal government may challenge burdensome state laws, targeting those like Texas’s RAIGA.

Key Regulatory Questions

Can government regulate AI chatbot safety? What if AI firms hit bank-sized valuations? Could Congress ban addictive app features? How will the FTC address social media targeting minors?

National Security and Oversight

CFIUS reviews AI investments for security risks, as Commerce sets export rules. Can the Pentagon remove AI safety guardrails? Antitrust targets AI in markets, like the DOJ-RealPage rental settlement, and OpenAI regulation.