Silicon Valley's war against state AI laws is over, and the tech lobby is throwing in the towel. State legislators, emboldened by public outrage, are now taking charge of regulating AI, leaving tech companies scrambling to adapt. The tide has turned, and the narrative is shifting from the tech industry's pushback to a more collaborative approach with state lawmakers. This shift is evident in the growing number of state bills addressing AI safety, auditing standards, and chatbot protections for kids, with even deep-red states like Utah and South Carolina joining the fray. The public's rapid swing in favor of stricter AI rules has undermined the tech lobby's threats to challenge lawmakers, and the industry's attempts to preempt state regulations have largely failed. Governors, once seen as a potential backstop for the tech industry, are now being viewed as a means to curb onerous state AI laws. The vacuum created by Washington leaves governors as a 'backstop' that can block harmful state AI regulations. The American Innovators Network's executive director, Jeremy Kudon, acknowledges that the argument for federal AI rules has become untenable, and his lobbyists are now urging states to streamline their AI laws. However, the surge in pro-regulation groups, including those with ties to top AI developers like Anthropic, is challenging the tech lobby's influence. The public's concern about AI's impact on data privacy, jobs, and kids is driving the shift, and legislators are responding to this sentiment. The tech lobby's attempts to punish pro-regulation lawmakers may be backfiring, as seen in the case of Alex Bores, a Democratic assemblymember from New York. The future of AI regulation is uncertain, but the momentum for state laws is likely to continue, with public sentiment and risks driving the change. The tech industry must now adapt to this new landscape, where state legislators are taking the lead in shaping AI's future.
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