The politics of artificial intelligence are quickly becoming a contest over regulation, with lawmakers and agencies competing to demonstrate vigilance rather than focusing on enabling innovation.
In The high price of regulating AI, Sébastien Laye publishes his latest op ed for Washington Examiner:
The Senate’s decision to strip a decadelong federal moratorium on state AI rules from the One Big Beautiful Bill Act was a case in point. In one day, Washington, D.C., abandoned a pause that might have prevented a patchwork of 50 AI codes. The vote was to remove the moratorium provision after a late campaign against it; whatever one thinks of preemption, the “snafu” has left firms facing a thicket of overlapping mandates.
Two economic lessons follow.
First, regulatory fragmentation is a tax on experimentation. The internet’s ascent owed much to a permissive, light-touch posture — anchored by policy choices like Section 230 and a general reluctance to pre-clear new services. That climate did not eliminate harm, but it lowered the fixed costs of entry so innovators could discover value before being strangled by procedure.
The political economy of AI is now tilting the other way. …
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