A New State and Federal Compact for Artificial Intelligence

Effective AI governance requires a balance of strong federal standards and state authority.
There needs to be clarity on whether and to what extent federal regulation can preempt state laws, and over data centers, which should follow regulatory practices similar to modern communications.
The executive branch lacks authority to repeal state laws without explicit congressional consent; thus, untethered executive orders should be discarded.
The federal government should have primary roles in areas concerning national security, defense, and cybersecurity but must share responsibility with states in other areas.
State laws, like California’s Senate Bill 53, offer a good start but could be supplanted by federal laws.
State authority in managing local impacts of AI data centers, like electricity use and water consumption, should be preserved.
Self-regulation by industry alone is insufficient and requires robust federal oversight and legislation.
Democratic processes involving transparency, public participation, and proper deliberation are essential in determining AI governance policies.

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