FCC Could Likely Do Little to Curb State Regulation of AI: New Street
The FCC would likely be able to do little to block state laws regulating AI, New Street’s Blair Levin told investors Monday. “Case law suggests that where the FCC does not have authority to regulate, it does not have the authority to preempt the states from regulating,” Levin wrote.
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FCC Chairman Brendan Carr has cited two provisions of the Communications Act that could give the agency authority to preempt state AI laws, Levin said. They are Section 253, “which prohibits state and local governments from blocking companies from providing inter and intrastate telecom services,” and Section 332, “which addresses state and federal regulations for mobile services.”
The problem for Carr is, “as far as we can tell, none of the state laws on AI either block companies from providing inter and intrastate telecom services nor do they address mobile services,” Levin said. While Carr has supported federal preemption in other situations, "the Senate’s 99-1 vote against a state AI moratorium makes action here both legally and politically challenging."