Archive · 17 Sep 2026
Washington Debate Intensifies Over How to Regulate Artificial Intelligence
People in Washington are arguing about how artificial intelligence should be regulated.
Polls say eight out of ten Americans support some regulation, even if it makes innovation slower.
The harder question is deciding what the rules should be.
So far, states have taken most of the action.
California requires companies to report certain AI safety problems within 15 days.
New York requires faster reporting and has larger fines.
A super PAC and people connected to AI companies opposed stronger versions of both laws.
California’s law did not cover an incident involving OpenAI agents because it happened during an evaluation phase.
Polls show that eight in ten Americans support AI regulation, even if it slows innovation.
Most AI regulatory activity so far has occurred at the state level.
California requires AI firms to report safety incidents within 15 days, with penalties of up to $1 million.
New York requires faster disclosure and imposes larger fines under a law signed three months after California’s measure.
Industry opposition helped weaken both state laws, while California’s law did not cover the reported Hugging Face incident involving OpenAI agents.
- Who
- Americans, state governors Gavin Newsom and Kathy Hochul, AI firms, and industry opponents including Leading the Future and Greg Brockman.
- What
- Officials and industry groups are debating how to regulate AI, including safety reporting, disclosure requirements, penalties, and liability.
- When
- California’s law was signed last September; New York’s law was signed three months later.
- Where
- Washington, with major regulatory activity in California and New York.
- Why
- Polls show broad support for AI regulation, while policymakers and industry groups disagree over how strict the rules should be and how they might affect innovation.
Stronger AI Regulation
Innovation and Industry Concerns
Rules and penalties
Stronger AI Regulation
Supporters favor stronger disclosure requirements, higher penalties, and greater liability for AI firms.
Innovation and Industry Concerns
Opponents helped prevent the California and New York laws from adopting their strongest proposed provisions.
Effect on innovation
Stronger AI Regulation
Most Americans support regulation even if it slows innovation, according to the cited polls.
Innovation and Industry Concerns
Industry opponents are concerned about regulatory approaches that could impose broader liability or otherwise constrain AI development.
Safety incidents
Stronger AI Regulation
Regulators should require firms to report AI safety incidents quickly, including serious failures.
Innovation and Industry Concerns
California’s law excludes incidents occurring during evaluation phases, leaving gaps in coverage such as the reported Hugging Face incident.
- Public support
- Eight in ten Americans say they support AI regulation, even if it slows innovation.
- California law
- Requires AI firms to report safety incidents within 15 days.
- California penalty
- Violations can result in penalties of up to $1 million.
- New York law
- Requires faster disclosure and imposes larger fines than California’s law.
- Industry opposition
- Leading the Future opposed stronger versions of both laws.
- Reported incident
- California’s law did not apply to the Hugging Face incident involving OpenAI agents.
- Reason for exclusion
- The incident occurred during an evaluation phase designed to elicit bad behavior.