Silicon Valley Watches Closely as Trump’s Bill Targets State AI Regulations

In a television interview with San Francisco’s ABC7, regulatory partner Shruti Bhutani Arora highlighted California’s leadership in AI governance and its broader influence on national policy.

“California was the first state in the country to have a comprehensive privacy law, and now we have 19 other states, and probably more, that will have that comprehensive privacy laws ,” she said.

She also noted the growing volume of proposed legislation related to AI.

“We’re tracking close to at least 34 AI bills just in California right now. These are just the ones that are on our radar because our clients are interested in [them] and many more will be introduced between now and until the session closes,” she said. “So, California’s leading the charge.”

Discussing the potential impact of rolling back state-level regulations, Arora emphasized the uncertainty it could create.

“There’s always this push and pull between regulation and innovation and consumer protection…and what we’re hearing between the industry groups and consumer protection groups is that it could cause a gap in terms of ‘what is it that companies are supposed to do now?’”

With the absence of clear federal guidelines, concerns have also surfaced among business leaders, particularly about job displacement.

“[AI] is such a groundbreaking technology and…this is where it’s going to change a lot of things,” Arora said. “It’s also going to shift the way we work, it’s going to shift the way we think, and the way I compare it so that I can understand—as a lawyer and a non-tech person who advises tech companies—is that it’s a brain that’s developing fast.”

She added, “It will take over a lot of things, but it will also create opportunities, primarily because it will force a change in the way we work.”