With Congress stalled on AI regulation, U.S. states are taking matters into their own hands.
From hiring rules to political ads, states are passing targeted AI laws — creating a patchwork of protections across the country.
Kalshi and Polymarket traders are wondering on everything from what the best AI might be this month (Gemini has it be 68% right now on Kalshi)
California — The Blueprint
California is leading the charge with laws like SB 503 targeting high-risk AI in health care.
Rules require disclosures, risk assessments, and bias audits — setting a precedent for other states.
Colorado, Connecticut, Illinois — Privacy Meets AI
- Colorado: Opt-out rights for AI profiling, plus insurance-specific rules
- Connecticut: AI protections added to child safety and privacy laws
- Illinois: Focused on biometric privacy and bias audits in hiring tools
- New York — Bias and Accountability
NYC’s Local Law 144 mandates audits for AI in hiring
The state is also moving toward broader oversight of advanced AI systems through the proposed RAISE Act
Texas — Tough on Misuse
- HB 149: Bans discriminatory AI in employment (effective 2026)
- SB 20: Criminalizes AI-generated child abuse imagery
Texas is setting hard limits on where and how AI can operate.
Tennessee — The ELVIS Act
In a nod to its musical roots, Tennessee passed the ELVIS Act, banning AI impersonation of voices and images without consent.
One of the first major laws protecting personal likeness from generative AI.
Utah — AI Disclosures Required
Utah’s AI Policy Act forces transparency in consumer AI tools, including mental health bots.
It’s a direct move to protect users and extend oversight through 2027.
Montana & Oregon — Government and Elections
- Montana: Bans AI from making public decisions without human oversight
- Oregon: Political campaigns must disclose when AI is used in messaging — a key election integrity measure
The Bigger Picture — 2025 AI Law Boom
- All 50 states plus D.C. introduced AI legislation this year
- 28 states and the U.S. Virgin Islands have passed at least one law
- A proposed federal ban on state AI laws was struck down this summer
The New AI Frontier
There’s no unified national AI law. Instead, the front lines are in state capitols. The result: a fractured but fast-evolving regulatory landscape where innovation meets accountability — one ZIP code at a time.
