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The daily flare

Posted on Originally published at thedailyflare.com

Democrats plan AI rules after midterm gains, but priorities diverge

Originally published on The Daily Flare.

Democrats who won control of the U.S. Congress in the Nov. 3 midterms are preparing competing AI and data-center proposals, setting up a fight over how far regulation should go.

Voter concerns about artificial intelligence and the facilities powering it helped shape campaigns across the country. An exit poll cited by NBC News found that 56% of voters considered AI concerns crucial or important to their congressional vote. The Philadelphia Inquirer reported that 40 of 41 local ballot initiatives on data centers passed, signaling strong resistance to new projects in communities around the country.

Democrats have outlined proposals aimed at consumer costs, corporate accountability and the safety of advanced systems. Reuters reported that lawmakers plan to introduce measures addressing electricity bills linked to data centers, requiring independent tests of leading AI systems, and clarifying when companies can be held liable for harm caused by their products.

Senate Democratic Leader Chuck Schumer, expected to become majority leader, said consumer protection from higher energy costs tied to data-center expansion would be a priority next year. Massachusetts Rep. Lori Trahan plans to pursue independent safety evaluations of leading AI models and legislation clarifying company liability, her deputy chief of staff told Reuters. California Rep. Zoe Lofgren, who is seeking to chair the House Science Committee, said the party would pursue “responsible regulations for AI while also fostering innovation.”

Some Democrats want Congress to scrutinize industry leaders as well as write legislation. Texas Rep. Greg Casar, chair of the Congressional Progressive Caucus, has said AI executives should be called to testify under oath. Control of congressional committees would give Democrats a platform to compel testimony and build support for action, Reuters reported. Michigan’s Abdul El-Sayed, who won a Senate seat, campaigned for an independent agency with authority to oversee AI and police technology companies.

The party’s priorities range from local impacts to far-reaching concerns about the technology itself. New Hampshire Sen.-elect Chris Pappas criticized data centers for harming communities and well-being, while Minnesota Sen.-elect Peggy Flanagan committed to restricting AI use in insurance decisions. Georgia Sen. Jon Ossoff highlighted catastrophic risks in his victory speech, saying: “The titans of Silicon Valley dig bunkers for themselves and warn that the artificial intelligence they’re creating risks human extinction.”

That spread of concerns could make agreement difficult. Samuel Hammond, AI policy director at the right-leaning Foundation for American Innovation, told NBC News that Democrats could struggle to reconcile proposals as different as Sen. Bernie Sanders’ call to ban artificial superintelligence and efforts to update permits for power plants and other infrastructure. Artificial superintelligence refers to systems smarter than humans across cognitive tasks.

Other Democrats see that breadth as a strength. New York Assembly Member Alex Bores, who authored the state’s RAISE Act, told NBC News that varied priorities could let Congress address multiple issues at once. “Multiple policy approaches are good and healthy as long as we’re working together to ensure that we are protecting the American people from the many different ways that this technology could harm people,” he said.

Data centers have become a prominent focus because their electricity and water demands can affect local resources. Ohio Sen.-elect Sherrod Brown, campaigning in a state with one of the country’s highest concentrations of the facilities, said: “I do not work for data centers.” In Ohio, Brown also criticized tax breaks and incentives granted to data-center developers, according to The Philadelphia Inquirer.

President Donald Trump has argued that mandatory AI rules could hinder U.S. innovation, calling AI a “golden goose” and data centers sound economic investments, NBC News reported. He has also said he would work with states seeking to grow through AI. The White House’s opposition could complicate Democratic efforts even if the party advances bills and hearings.

The prospect of tighter scrutiny has already affected investor sentiment. Reuters reported that technology shares fell sharply on Thursday amid concerns that a new Congress could slow AI development, as well as worries that heavy spending on AI infrastructure might not produce sufficient returns.

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