Washington Set to Stall on AI, Leaving Regulation to the States
As states like California pass large AI legislation packages, the federal government has remained mostly silent.
The VICO model expects the inaction to extend through 2027.
The single likeliest to pass is not an AI-governance law at all, but a national-security one aimed at China, at 42%.
Deepfake and likeness protections have a middling shot, helped by bipartisan support and concrete-harm framing, at 30%.
The ambitious bills are effectively dead on arrival, at 9% and 6% respectively: a preemption bill that would create federal uniformity over state AI laws, and a measure criminalizing election deepfakes.
In the federal government's absence, expect a patchwork of different laws to be passed by different states, each taking the problem into their own hands.
70%: The probability that at least five states pass major AI regulatory frameworks by the end of 2027.
For AI firms, that means complying with a large web of legal codes, and ensuring nationwide products comply with the strictest statewide guidelines.


