Statement by ACT | The App Association President Morgan Reed on 10-Year Moratorium on State AI Laws Included in Reconciliation Bill

WASHINGTON – Startups and small businesses are using artificial intelligence (AI) to drive the next wave of innovation. But regulatory overreach threatens to create a quagmire of conflicting and unnecessary rules that might put American leadership at risk.

“We’re tracking more than 900 state AI bills. This potential surge of contradictory and overlapping policy proposals would quash small business AI innovation, most of which poses minimal risk,” said ACT | The App Association President Morgan Reed. “Our members are using AI to streamline government processes, enhance cybersecurity, and make services more accessible and efficient. We welcome proposals like this to prevent government from unnecessarily singling out AI models and systems when enforcement of existing law is a better fit. This is a positive step toward a regulatory approach that balances freedom to innovate with responsible oversight to prevent reckless high-risk behavior by bad actors.”