States in the U.S. are stepping up with their own AI policies, trying to strike a balance between encouraging innovation and safeguarding citizens. According to a report from the Council of State Governments, even as the federal government debates national rules, states are acting proactively to set standards for AI use in government and commercial contexts.
One of the core focuses for state-level legislation is privacy and cybersecurity. Many states are working to protect personal data in AI systems, regulate disinformation, and limit misuse of biometric data. In addition, laws in some states require that algorithmic decisions happen transparently, and users should know when AI is being used — especially in high-stakes areas like housing, finance, or public services.
AI is also becoming a tool for government efficiency. States are using it to improve everything from educational services to law enforcement, but they are building in accountability. Public-private partnerships are playing a major role: for example, some states are working with big tech firms to build AI infrastructure and train talent, while ensuring governance is in place.
The report highlights several principles that states believe should guide AI policy: transparency, human oversight, consumer protections, attention to workforce changes, and environmental sustainability. States argue they shouldn't wait for federal rules — by acting now, they can tailor AI governance to their own needs and contexts.
