With the right approach, Virginia can lead a tech revolution
Leading firms such as Amazon and Boeing have spurned traditional tech hubs in San Francisco or Seattle to establish a foundation here in the commonwealth. These moves present Virginia with the opportunity to become a cornerstone for American technology development. However, as lawmakers across the country debate regulations on groundbreaking technologies such as artificial intelligence (AI), Virginia’s future as a technology leader is far from secure.
One industry group estimates more than 200 AI bills were filed in state legislatures nationwide. Those proposals cover a wide range of topics including AI use in political campaigns, transparency and disclosure requirements, and how government agencies might responsibly implement AI to improve services.
Unfortunately, those same lawmakers are entertaining strict, top-down control of AI development in the name of safety, security and trust.
California, Connecticut, Illinois, New York and Vermont rushed ahead with sweeping proposals to restrict AI use for “consequential decisions” in “high-risk” sectors, especially in education, employment, housing, insurance and health care. These industries are already highly regulated by states, no matter which technology is used, with numerous anti-discrimination and consumer protection statutes that provide victims with legal remedies.
During the 2024 legislative session, Virginia lawmakers had a choice: Support Gov. Glenn Youngkin’s vision to make the commonwealth a national AI leader or drown this promising industry with problematic oversight before it gets off the ground.
The General Assembly considered at least 10 AI bills including one measure headed to the governor’s desk that commissions a study on government use of AI
and paves the way for a Commission on Artificial Intelligence to advise on this fast-moving technology. Instead of rushing in, committee leaders paused on passing any AI regulations. This move affords policymakers valuable time to craft effective policies so they can thoroughly assess and anticipate practical downstream effects.
Keeping AI safe and secure is key, but a misguided approach could lead to unintended consequences for Virginia entrepreneurs. As the R Street Institute recently noted, “compliance with algorithmic auditing mandates would likely become a time-consuming, convoluted, bureaucratic process that could significantly
slow the pace of AI development.” Diverting funds earmarked for payroll or product development to tackle bureaucratic red tape is the last thing any struggling small business needs.
Instead of bogging down the commonwealth with burdensome regulations, Youngkin issued Executive Order 30 directing the administration to explore how AI might improve government services and establish guidance on responsible integration in fields such as education and law enforcement. Can it improve lesson plans, increase response times, or provide students with additional assistance when preparing for college? These are all areas worthy of further exploration.
Members of the American Legislative Exchange Council developed common-sense model policies that embrace free-market competition, criminalize the exploitation of minors, and clarify that malicious, non consensual deepfakes — like the ones attacking Taylor Swift — are punishable under existing laws. If they haven’t already, states can follow Virginia’s lead and update any existing laws to cover “falsely created videographic or still images.”
The beauty of America’s federalist system of government is that misguided policies from Sacramento, California, or Albany, New York, need not be replicated in
Richmond. When the AI regulation craze returns next year, Virginia lawmakers have the opportunity to support innovation, improve consumer choice, and remove unnecessary compliance hurdles that could grind innovation to a halt. That’s the approach that can cement Virginia’s future as a national leader in emerging technology.
Jake Morabito of Fairfax is ALEC’s Communications and Technology Task Force director. He engages with legislators and stakeholders across the public and private sectors to develop telecommunications and technology policy rooted in the principles of limited government, free markets and federalism.