The Supreme Court’s Impact on AI Regulation

The Supreme Court recently took a sledgehammer to federal agencies’ powers, as noted by Morning Brew.

Less than a year ago, the drive for AI regulation was gaining significant momentum, marked by key milestones such as the AI Safety Summit in the U.K., the Biden Administration’s AI Executive Order, and the EU AI Act. However, a recent judicial decision and potential political shifts are leading to more uncertainty about the future of AI regulation in the U.S.

Agency Expertise vs. Judicial Oversight

The Supreme Court’s decision in Loper Bright Enterprises v. Raimondo weakens federal agencies’ authority to regulate various sectors, including AI. In overturning a precedent known as “Chevron deference,” the court decision shifts the power to interpret ambiguous laws passed by Congress from federal agencies to the judiciary.

Existing laws are often vague, leaving interpretation and regulation to the agencies, which have more expertise in fast-moving fields like AI. For instance, the Federal Trade Commission (FTC) focuses on consumer protection related to AI, while the Equal Employment Opportunity Commission (EEOC) addresses AI in hiring to prevent discrimination.

Challenges and Legislative Needs

The net effect of Loper Bright Enterprises v. Raimondo could undermine the ability to set up and enforce AI regulations. As stated by the New Lines Institute, agencies must develop arguments that involve complex technical details to justify regulations.

Political Landscape

There is no guarantee that Congress would include stipulations for agency-led regulation, as political views vary. The Republican party’s platform expresses intentions to repeal the existing AI Executive Order, stating: “We will repeal Joe Biden’s dangerous Executive Order that hinders AI Innovation.”

Regulatory Outlook

The Supreme Court’s decision raises significant concerns about the ability of specialized federal agencies to enforce meaningful AI regulations. A change in leadership could lead to less regulation, contrasting with the UK’s approach to introduce binding regulations on powerful AI models.

Ultimately, the landscape of AI regulation in the U.S. is uncertain, and collaboration among policymakers, industry leaders, and the tech community is essential to ensure ethical and beneficial AI development.

Gary Grossman is EVP of technology practice at Edelman and global lead of the Edelman AI Center of Excellence.