Definition
A proposed US framework requiring AI companies to obtain a federal charter — a kind of government-issued licence — as a condition of operating in the country, with obligations tied to holding that licence. It is one of the most structurally far-reaching US federal AI proposals, moving the debate from voluntary commitments toward binding, revocable authorisation.
Why it matters
If enacted, it would give the US government a built-in lever to suspend or withdraw an AI company's right to operate, a governance model boards should track when assessing regulatory exposure.