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The year 2024 witnessed an unprecedented surge in AI lobbying efforts at the U.S. federal level, signaling a critical juncture in the evolution of artificial intelligence and its relationship with government regulation. As AI technologies rapidly permeate various aspects of society, from creative industries to national security, the race to establish a regulatory framework has intensified, prompting AI companies to significantly ramp up their engagement with policymakers.

Data compiled by OpenSecrets reveals a dramatic 141% year-over-year increase in AI lobbying, with 648 companies participating in 2024 compared to 458 in 2023. This surge reflects the growing recognition within the AI industry of the urgent need to shape the legislative landscape and navigate the uncertainties surrounding future regulations.

Key Players and Their Strategies:

Several prominent players spearheaded this lobbying surge, each with their own specific legislative priorities. Microsoft, a major investor in OpenAI, supported initiatives like the CREATE AI Act, aimed at bolstering the benchmarking of AI systems developed within the U.S. This reflects a desire to establish clear standards and promote American leadership in the AI arena.

OpenAI, the creator of ChatGPT, and its close rival Anthropic, focused their efforts on the Advancement and Reliability Act, which proposes the establishment of a dedicated government center for AI research. This initiative underscores the importance of fostering collaboration between the public and private sectors to advance responsible AI development.

The data further reveals that most AI labs, companies primarily focused on commercializing AI technologies, significantly increased their lobbying expenditures in 2024. OpenAI notably increased its spending from $260,000 in 2023 to a substantial $1.76 million in 2024. Anthropic more than doubled its spending from $280,000 to $720,000, while enterprise-focused startup Cohere boosted its spending from $70,000 to $230,000.

Recognizing the importance of direct engagement with policymakers, both OpenAI and Anthropic made strategic hires to strengthen their government affairs teams. Anthropic brought on its first in-house lobbyist, Rachel Appleton, a Department of Justice alum, while OpenAI recruited political veteran Chris Lehane as its new VP of policy.

Collectively, OpenAI, Anthropic, and Cohere allocated $2.71 million to their 2024 federal lobbying initiatives. While this figure pales in comparison to the broader tech industry's lobbying expenditure of $61.5 million, it represents a more than fourfold increase from the $610,000 spent by these three AI labs in 2023.

A Tumultuous Year for AI Policymaking:

The year 2024 proved to be a pivotal period for AI policymaking, marked by intense debate and legislative activity at both the federal and state levels. Congress considered over 90 AI-related pieces of legislation in the first half of the year alone, while state legislatures proposed over 700 laws.

Despite this flurry of activity, progress at the federal level remained limited, prompting states to take the lead in shaping AI regulations. Tennessee became the first state to enact legislation protecting voice artists from unauthorized AI cloning, while Colorado adopted a tiered, risk-based approach to AI policy. California Governor Gavin Newsom signed numerous AI-related safety bills, some of which mandate disclosure requirements for AI companies regarding their training data.

However, no state has yet succeeded in implementing AI regulations as comprehensive as international frameworks like the EU's AI Act. California's attempt to pass SB 1047, which would have imposed extensive safety and transparency requirements on AI developers, was ultimately vetoed by Governor Newsom after facing significant opposition from special interests. Texas' TRAIGA bill, which is even broader in scope, faces an uncertain future as it progresses through the statehouse.

The Federal Landscape and the Shadow of Deregulation:

The future of federal AI legislation remains unclear, particularly given the shifting political landscape. There is uncertainty about the current administration's appetite for codification. The current administration has signaled an intention to largely deregulate the industry, with the stated aim of removing perceived obstacles to U.S. leadership in AI.

This stance has manifested in several concrete actions. On the first day in office, the current administration revoked an executive order issued by the previous administration that aimed to mitigate the risks AI might pose to consumers, workers, and national security. Furthermore, an executive order was signed directing federal agencies to suspend certain AI policies and programs established by the previous administration, potentially including export rules on AI models.

The Industry's Call for Action:

Amidst this regulatory uncertainty, key players in the AI industry have voiced their perspectives on the need for government intervention. In November 2024, Anthropic urged for "targeted" federal AI regulation within the next 18 months, emphasizing that the window for "proactive risk prevention is closing fast." Similarly, OpenAI, in a recent policy document, called on the U.S. government to take more substantive action on AI and invest in infrastructure to support the technology's continued development.

Looking Ahead: The Stakes are High:

The intensified lobbying efforts in 2024 underscore the critical importance of establishing a clear and effective regulatory framework for AI. The decisions made in the coming years will have profound implications for the future of this transformative technology and its impact on society.

Several key themes emerge from this analysis:

• The urgency of regulation: The rapid advancement of AI technologies demands a proactive approach to regulation to mitigate potential risks and ensure responsible development.

• The need for balance: Striking a balance between fostering innovation and safeguarding against potential harms is crucial. Overly restrictive regulations could stifle progress, while a lack of oversight could lead to unintended consequences.

• The importance of international collaboration: Aligning regulatory frameworks with international standards, such as the EU's AI Act, is essential to avoid fragmentation and promote global cooperation.

• The role of public-private partnerships: Collaboration between government, industry, and academia is vital to leverage expertise and ensure that regulations are informed by the latest scientific understanding.

As AI continues to evolve, the conversation surrounding its regulation will undoubtedly intensify. The lobbying efforts of 2024 represent just the beginning of a complex and ongoing dialogue that will shape the future of artificial intelligence for generations to come.

A Deeper Dive into the Legislative Landscape:

To fully understand the context of the AI lobbying boom, it is essential to delve deeper into the specific legislative proposals and policy debates that have shaped the regulatory landscape.

Federal Initiatives:

At the federal level, several key pieces of legislation have been under consideration:

• The CREATE AI Act: This act focuses on establishing standards and benchmarks for AI systems developed in the U.S., with the aim of promoting American competitiveness and ensuring the quality and reliability of AI technologies.

• The Advancement and Reliability Act: This proposal calls for the creation of a dedicated government center for AI research, fostering collaboration between public and private sectors to advance responsible AI development.

• Various other bills: Congress has considered numerous other bills addressing specific aspects of AI regulation, including issues related to data privacy, algorithmic bias, and the use of AI in national security.

State-Level Actions:

While federal progress has been limited, several states have taken the initiative to enact their own AI regulations:

• Tennessee: The state has passed legislation protecting voice artists from unauthorized AI cloning, addressing concerns about the use of AI to replicate and exploit creative works.

• Colorado: Colorado has adopted a tiered, risk-based approach to AI policy, focusing on regulating AI systems based on their potential impact on individuals and society.

• California: California has been at the forefront of AI regulation, with Governor Newsom signing several bills addressing AI safety and transparency. However, the veto of SB 1047 highlights the challenges of enacting comprehensive AI regulations at the state level.

• Texas: The TRAIGA bill in Texas represents a broader attempt to establish comprehensive AI governance, but its future remains uncertain.

International Developments:

The regulatory landscape is not limited to the U.S. Several international bodies and governments are actively developing AI regulations:

• The EU AI Act: This landmark legislation aims to establish a comprehensive framework for AI regulation across the European Union, focusing on risk assessment and placing restrictions on high-risk AI applications.

• Other international initiatives: Various other countries and international organizations are developing their own AI strategies and regulatory frameworks, highlighting the global nature of this issue.

The Impact of Deregulation:

The current administration's focus on deregulation adds another layer of complexity to the AI regulatory landscape. While proponents argue that deregulation can foster innovation and promote U.S. competitiveness, critics express concerns about the potential risks of unchecked AI development.

The Future of AI Regulation:

The future of AI regulation remains uncertain, but several key trends are likely to shape the landscape:

• Continued lobbying efforts: AI companies will likely continue to invest heavily in lobbying efforts to influence policy decisions.

• Increased state-level activity: In the absence of comprehensive federal legislation, states are likely to continue taking the lead in developing their own AI regulations.

• Growing international cooperation: The need for international cooperation on AI regulation will become increasingly important as the technology continues to globalize.

• Focus on specific use cases: Rather than broad, sweeping regulations, future efforts may focus on addressing specific use cases and applications of AI, such as autonomous vehicles, healthcare, and finance.

Conclusion:

The AI lobbying boom of 2024 marks a critical turning point in the ongoing dialogue surrounding AI regulation. As the technology continues to advance at an unprecedented pace, establishing a clear and effective regulatory framework is essential to mitigate potential risks and ensure responsible development. The interplay between federal and state initiatives, the influence of industry lobbying, and the evolving international landscape will continue to shape the future of AI regulation for years to come. The stakes are high, and the decisions made in the coming years will have profound implications for the future of this transformative technology and its impact on society.