The artificial intelligence revolution is still in its infancy, yet many states are actively pursuing policies that will hobble innovation and competition in this space. One of the most problematic types of cumbersome and costly AI mandates involves efforts to regulate algorithmic pricing. Led by California and New York, more than 50 AI pricing bills across 24 state legislatures were introduced last year, each with their own unique definitions and compliance requirements. Many have already taken effect and many more are on the way.
With Congress unable to find a solution to the regulatory briar patch of rules and regulations state and local governments fomented around AI last year, 2026 is shaping up to be the year that the AI patchwork arrives. Algorithmic pricing generally and price controls specifically are at the center of the debate.
These laws have been an absolute mess. Algorithmic pricing definitions are broad enough to accidentally rope in happy-hour discounts, with other bills targeting specific sectors ranging from real estate to grocery stores. A bill in Maine would have banned changing prices when demand fluctuates in grocery stores and restaurants, undermining simple supply and demand responses.
Adam Thierer is a Senior Fellow for Technology and Innovation at the R Street Institute. Logan Kolas is the Director of Technology Policy at the American Consumer Institute. Follow Logan on X @Logan_Kolas