States pass targeted AI laws after federal warning against regulation

Six months after a federal warning against state-level artificial intelligence rules, lawmakers in multiple states passed narrower statutes this year. The measures focus on chatbots used by children, employer use of AI in hiring, and requirements that developers of large models create safeguards against extreme harms.

State actions Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon approved laws requiring companies to disclose when users interact with chatbots and to limit certain chatbot functions for minors. Connecticut added rules for companion chatbots that bar interaction with anyone under 18 unless the system blocks self-destructive content and gives parents control tools.

Colorado required disclosure when AI systems influence decisions in employment, education, housing, or banking. Connecticut, Washington, and Utah mandated technical markers in digital content so users can identify AI-generated material. Illinois advanced a bill requiring developers of advanced models to obtain independent audits of their safety protocols.

Federal response A federal directive instructed the attorney general to form a task force to challenge state laws deemed more than minimally burdensome and directed the Commerce Department to compile a list of problematic rules. The same directive threatened to withhold broadband and other grant funds from states with qualifying AI statutes.

A subsequent national policy framework urged Congress to preempt state laws inconsistent with federal priorities and to enact measures on child protection, intellectual property, and free speech. No court challenges or funding restrictions have been reported.

Some state proposals stalled. Florida legislators declined to advance a package that would have required chatbot disclosures and parental controls. Utah paused similar legislation after receiving a one-sentence federal memo stating categorical opposition.