Arlington, VA — A new report from the American Consumer Institute (ACI), Irresponsible Collaboration: Evidence of a Growing AI Fairness Patchwork, highlights the increasing fragmentation of AI fairness bills across the United States. Authored by Logan Kolas and Nate Karren, the report finds that state-level AI governance is rapidly diverging, creating a complex regulatory landscape that threatens innovation and competition.
More than 200 state lawmakers from over 45 states have participated in the Multistate AI Policymaker Working Group in an effort to coordinate AI policy. However, despite this collaboration, states are moving forward with inconsistent legislative approaches to AI fairness. Colorado became the first state to pass such a law in May 2024, despite concerns from Governor Jared Polis about the potential negative impact on technological advancement and market competition.
Following Colorado’s lead, multiple states—including Arkansas, California, Connecticut, Georgia, Hawaii, Illinois, Maryland, Massachusetts, Nebraska, New Mexico, New York, Oklahoma, Texas, Vermont, and Virginia—have introduced their own AI fairness legislation. However, ACI’s analysis, using standard text analysis methods, reveals substantial differences between these state-level proposals. The report finds that even among states pursuing similar goals, legislative language, scope, reporting requirements, and enforcement mechanisms vary significantly.
Key Findings:
- Less Forgiving Estimates: Jaccard similarity scores, which measure word overlap, ranged from just 12 percent (Maryland and Oklahoma) to 60 percent (Nebraska) when compared to Colorado’s law, with an average similarity of only 35 percent.
- More Forgiving Estimates: Cosine similarity scores, which account for word frequency and rarity, varied widely, with some states showing as little as 12 percent (California) similarity to Colorado’s law. The highest similarity across all states and measurements was Massachusetts and Colorado at 91 percent, with an average similarity score of 51 percent.
- Escalating Costs for Businesses: The report warns that businesses, particularly smaller firms, will struggle to comply with a fragmented AI regulatory landscape, increasing costs and stifling innovation.
“The data is clear: state AI fairness proposals are anything but uniform,” said Logan Kolas, co-author of the report. “Policymakers may claim they are working toward a cohesive framework, but the reality is a looming patchwork that will harm businesses and consumers alike.”
The report argues that a fragmented regulatory approach will lead to higher compliance costs, legal uncertainty, and barriers to innovation. States should abandon this approach entirely. But if they continuing down this path, federal lawmakers should preempt the emerging state-level patchwork with a streamlined, light-touch national standard.
“As AI becomes an increasingly integral part of our economy, the need for clear and consistent rules is more important than ever,” said co-author Nate Karren. “A regulatory free-for-all risks creating unnecessary hurdles for businesses trying to develop and deploy AI technologies.”
ACI urges policymakers to recognize the dangers of a fractured AI regulatory environment and to take action to prevent further divergence. The full report is available for download on ACI’s website.
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