What happened
Morgan Lewis published a comprehensive analysis showing that while federal AI legislation remains absent, state-level enforcement is intensifying through antitrust, consumer protection, and false claims statutes. The FTC is using Section 5 against deceptive AI practices, the SEC targets 'AI washing' in disclosures, and private plaintiffs are testing algorithmic pricing conspiracy theories.
Why it matters
Organisations deploying AI in the US face a patchwork of state-level obligations that are expanding rapidly. The lack of federal pre-emption means compliance must be assessed state by state, increasing legal risk for multi-state operations.
Action needed
Map your AI deployments against the state-level regulatory tracker. Prioritise compliance reviews in states with active enforcement (Colorado, Illinois, California) and monitor private litigation trends for your sector.