AI Policy Patchwork Creates Confusion, Experts Say

WASHINGTON, March 12, 2025 – A fragmented approach to artificial intelligence regulation could create significant challenges for small businesses, industry leaders warn.

“It’s hard for a company with 10 employees to figure out how to comply in 20 different states with different AI policies,” Colin Crowell with The Blue Owl Group said, emphasizing the need for a national framework. 

With over 700 AI-related bills introduced across states in 2024, speakers here at Tuesday’s INCOMPAS Policy Summit cautioned that overlapping and contradictory regulations could stifle innovation and create compliance burdens.

Experts argued that AI regulations should focus on use cases rather than restricting the underlying models. “Any kind of sensible regulation has to be about how the model is being used, its impact on the world, not the model itself,” argued Anthony Bak, Head of AI Implementation at data analytics firm Palantir Technologies. 

They stressed that open-source developers, from major institutions to independent researchers, should not be held liable for misuse of their AI software.

Speakers also pointed to the federal government’s potential role in advancing AI through public data access. “There’s a lot of data in the Library of Congress that could be used for training models,” Crowell noted, adding that datasets from the Department of Veterans Affairs could support AI-driven healthcare applications.

Looming large throughout the discussion, however, were concerns over energy infrastructure. “In the next two years, we are going to run out of the resources we need at the rate we’re going,” warned Kara Hinesley, Head of Public Policy and Government Affairs at Canva.

As AI adoption accelerates, panelists urged policymakers to create a cohesive regulatory framework for energy and AI to prevent market uncertainty. 

“Nothing will animate an elected official more… than if AI starts to cause brownouts because the electricity grid is under stress,” Crowell said, referring to utility companies’ practice of limiting household electricity to prevent overloads and blackouts during high demand.