A new proposal backed by Donald Trump is stirring controversy in the AI world—and not everyone in Big Tech is on board.
The former president wants to block states from passing their own AI laws for the next 10 years. The proposed moratorium, tucked inside a Republican-led tax and spending bill, would tie state broadband funding to a promise: no new AI regulation. In short, states would have to give up their say on how AI is governed—or risk losing infrastructure dollars.
One of the loudest critics so far? Microsoft’s chief scientific officer, Eric Horvitz.
“Guidance and reliability are not obstacles—they’re essentials,” Horvitz said at the Association for the Advancement of Artificial Intelligence. He warned that stripping states of oversight powers could open the door to AI misuse, from deepfakes to discriminatory algorithms.
Microsoft hasn’t issued an official statement on the bill—but Horvitz’s stance signals a crack in the tech consensus. While many companies support uniform regulation, Horvitz believes leaving AI unchecked could backfire, hurting innovation in the long run.
Big Tech’s Balancing Act
The tension is real: Companies want regulatory clarity but resist rules that could slow down their roadmap. Critics argue that linking broadband funding to an AI moratorium is less about efficiency—and more about control. The bill would bypass local democratic processes, consolidating AI policy at the federal level with minimal debate.
Behind the scenes, lobbying is in overdrive. The number of organizations pushing AI-related policy in Washington tripled between 2022 and 2023. Trade groups like Incompas—whose members include Amazon, Meta, and Google—have been aggressively campaigning to preempt state-level rules.
Why the World Is Watching
Globally, the U.S. is already playing catch-up. The EU just passed its landmark AI Act. China is enforcing algorithm transparency. Even California is drafting laws to hold AI developers accountable. Meanwhile, America’s federal government has yet to set meaningful AI standards—leaving a growing patchwork of local initiatives to fill the void.
And that’s where the stakes lie: Will the U.S. lead with smart, responsible AI governance—or stall progress by silencing innovation at the state level?
About the Author
