Tech Giants Urge Congress to Block State-Level AI Laws for a Decade to Protect Innovation

America’s largest technology companies — including Amazon, Google, Microsoft, and Meta — are lobbying Congress to implement a 10-year freeze on state-level regulation of artificial intelligence (AI), according to a report published by the Financial Times on June 18. This proposal has not only sparked controversy within the AI industry itself but has also created divisions within the Republican Party.

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Insiders told the Financial Times that lobbyists working for these tech firms have been urging U.S. Senators to adopt language included in the House version of President Donald Trump’s recently passed budget bill. That version contains a provision barring individual U.S. states from enacting AI-specific regulations for the next decade. The Senate is expected to reveal its own version of the bill soon, with hopes of passing it before the July 4 deadline.

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Chip Pickering, a former U.S. Representative who now serves as CEO of the tech industry trade group INCOMPAS, has been a key figure in pushing for this legislation. His organization represents a range of members from Big Tech to infrastructure providers and law firms.

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Pickering defended the proposed regulation ban, arguing that it will allow the U.S. to maintain its leadership role in global AI development, especially when competing with countries like China.

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“This is the right policy at the right time for American leadership,” Pickering told the Financial Times. “But it’s equally important in the race against China.”

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Amazon's Chief Security Officer Steve Schmidt echoed similar sentiments in a recent interview with Bloomberg News, warning that government involvement could stifle innovation. “The tension with regulation of any kind is that it tends to retard progress,” Schmidt said. “So the way we tend to focus on standards is to let the industry figure out what the right standards are, and that will be driven by our customers.”

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However, the proposal has drawn harsh criticism from some AI ethicists, academics, and advocacy groups, who say the tech giants are trying to protect their market dominance at the expense of public safety. Critics argue that such a sweeping ban would leave consumers vulnerable and shield tech firms from accountability.

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Max Tegmark, a professor at MIT and the president of the Future of Life Institute — a nonprofit that promotes ethical AI use — called the proposed ban “a power grab by tech bro-ligarchs attempting to concentrate yet more wealth and power.”

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Opposition to the moratorium is growing among civil society groups as well. In May, a coalition of 140 advocacy organizations submitted a letter to House leaders urging them to remove the provision. The letter warned that the ban could allow companies to avoid liability even when they knowingly develop harmful AI technologies.

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“This moratorium would mean that even if a company deliberately designs an algorithm that causes foreseeable harm — regardless of how intentional or egregious the misconduct or how devastating the consequences — the company making that bad tech would be unaccountable to lawmakers and the public,” the letter read.

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The debate has also stirred conflict within the Republican Party. Although the 10-year ban was included in a bill backed by former President Trump, some GOP lawmakers are skeptical about restricting states’ rights to regulate emerging technologies.

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Representative Marjorie Taylor Greene (R-GA) voiced strong opposition to the proposal on X (formerly Twitter), writing, “We have no idea what AI will be capable of in the next 10 years and giving it free rein and tying states’ hands is potentially dangerous. This needs to be stripped out in the Senate.”

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The legislative effort is unfolding at a time when interest in artificial general intelligence (AGI) — AI systems with capabilities on par with or beyond human intelligence — is surging. Companies like OpenAI and Google DeepMind are making rapid progress in developing these advanced models, prompting growing concerns about the ethical and social risks involved.

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Supporters of the moratorium argue that a patchwork of state laws could hinder innovation and increase compliance costs for companies operating nationwide. They believe that a single federal framework would be more efficient and help American firms remain globally competitive.

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But opponents worry that delaying regulation for a decade would amount to giving the tech industry a blank check. They argue that proactive oversight is essential, especially given the potential risks associated with AGI — such as mass disinformation, job displacement, and civil rights violations.

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With the Senate expected to take up its version of the budget bill soon, the future of the 10-year AI regulation ban remains uncertain. The debate has become a flashpoint in the broader discussion of how to balance innovation with accountability in one of the most transformative technologies of the 21st century.

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