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Featured Policy Discussion

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AI Is Here: What State Legislators Need to Know Now

Artificial intelligence is no longer a future-facing issue. It is already changing how people work, access services, interact with businesses, learn, receive healthcare, and engage with government. For state legislators, the question is increasingly not whether AI will affect their states—it is how states will govern its use, manage its risks, prepare their workforce, and ensure communities can participate in the benefits of an AI-driven economy. The policy landscape is developing quickly. The conversation is no longer simply about technology. It is about governance, accountability, economic opportunity, public trust, and the future of work.

What Is Happening Now?

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States are taking different approaches to AI, but several policy themes are emerging.

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1.  States Are Establishing New AI Oversight and Accountability Standards

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California provides one of the most recent examples. In September 2026, California enacted SB 813 and AB 1405, establishing a framework for independent assessment of AI systems. SB 813 creates a framework for independent verification organizations to assess AI systems and models for compliance with state law, while AB 1405 establishes a registry and standards for AI auditors.

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The underlying policy question is one that other states may soon face: who should be responsible for determining whether an AI system is operating safely, transparently, and in accordance with the law? Rather than relying exclusively on companies to evaluate their own systems, California's approach introduces independent third-party assessment into the regulatory framework.

2.  States Are Addressing AI's Impact on Consumers—Especially Young People

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One of the most active areas of state AI legislation in 2026 has been chatbot and AI companion safety.

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According to the Center for Democracy & Technology, 146 bills addressing chatbots, conversational AI, and AI companions were proposed, passed, or enacted during the 2025–2026 state legislative sessions. Nineteen states enacted legislation in this area.

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The legislation has addressed issues including:

  • Age verification and protections for minors

  • Disclosure that a user is interacting with AI rather than a human

  • Restrictions on AI systems creating misleading social or emotional relationships

  • Protections related to self-harm and harmful content

  • Transparency requirements

  • Privacy and data practices

  • Accountability for AI systems used in healthcare and mental-health contexts

 

These developments illustrate a broader policy challenge: how do policymakers protect people from foreseeable harms without unnecessarily restricting beneficial uses of emerging technology?

3.  AI Is Becoming a Workforce and Economic Development Issue

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AI is also changing the skills people need to compete in the workforce.

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States are beginning to consider policies related to AI education and training, workforce transitions, employment, and economic development. NCSL's AI legislation database specifically tracks legislation addressing AI's effects on labor and employment as well as education and training.

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For legislators, this creates an opportunity to think beyond the question of "Which jobs will AI replace?"

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A more actionable set of questions is:

  • What skills will workers need as AI changes existing jobs?

  • Which workers and communities have the least access to AI training?

  • Are community colleges and workforce-development systems prepared?

  • How can small businesses adopt AI without being left behind?

  • What happens to workers whose occupations are significantly disrupted?

  • How can states help young people prepare for jobs that may look different five or ten years from now?

 

Workforce policy may ultimately be one of the most consequential components of state AI strategy.

4.  AI Infrastructure Is Becoming an Energy, Water, and Local-Government Issue

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AI also has a physical footprint.

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The rapid expansion of AI requires data centers, which in turn require significant amounts of electricity, water, land, and supporting infrastructure. NCSL reports that 14 states are considering data-center bans, often driven by concerns about energy consumption and local opposition to new development.

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At the federal level, the U.S. House passed legislation in September 2026 (H.R. 9340) addressing the impact of data centers on energy costs. The bill would direct state utility regulators to ensure that data centers cover the full cost of new power and transmission infrastructure required for their operations.

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For state legislators, this raises practical questions about who pays for the infrastructure required to support AI, and who benefits from the economic development it creates? That conversation may involve utilities, local governments, economic-development agencies, businesses, environmental interests, and residents.

What Can State Legislators Do?

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AI policy does not have to begin with a comprehensive "AI bill."

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Legislators can begin by understanding where AI is already being used in their state and identifying the areas where existing laws may or may not provide adequate protections.

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ASSESS

Know where AI is being used.

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Ask state agencies to identify AI systems currently being developed, purchased, or used—including systems that influence public services, eligibility decisions, employment, healthcare, education, or other high-impact decisions.

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Questions to consider:

  • What AI systems does the state currently use?

  • What decisions do those systems influence?

  • What data do they rely upon?

  • Who is accountable when something goes wrong?

  • Is there a human review process?

  • Are residents notified when AI plays a meaningful role in a decision?

 

PROTECT

Identify areas where existing safeguards may not be sufficient.

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Consider whether state law adequately addresses:

  • Consumer transparency

  • Privacy and data protection

  • Algorithmic discrimination

  • AI-generated fraud and deception

  • Deepfakes and impersonation

  • AI use in healthcare

  • AI use involving children

  • Automated decision-making in high-impact areas

 

PREPARE

Help residents and institutions adapt.

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Consider investments in:

  • AI literacy

  • Workforce retraining

  • Community college and higher-education programs

  • Apprenticeships and credentialing

  • Small-business technical assistance

  • Training for state and local government employees

  • Guidance for legislative staff and elected officials

 

INVEST

Ensure communities can participate in the opportunities created by AI.

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Economic-development strategies can examine whether AI-related investment is reaching communities across the state—including rural communities, historically underserved communities, small businesses, and workers who may otherwise have limited access to emerging technologies.

Leadership Opportunity

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AI presents state legislatures with an opportunity to shape the rules before technology outpaces public policy.

The goal does not have to be choosing between innovation and regulation. Legislators can examine how their states can encourage responsible innovation while establishing clear expectations for transparency, accountability, human oversight, workforce preparation, and equitable access to opportunity.

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The central question for policymakers may ultimately be: Who gets to benefit from the AI economy—and who bears its costs? State legislative leadership can help ensure that the answer is not determined solely by technology companies, market forces, or circumstances after the fact.

References

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The Leadership Toolkit

Empowering legislative leaders of color with forward-facing resources designed to navigate complex policy landscapes and strengthen institutional impact.

Resource Lab

Access proprietary briefs and white papers focused on transformative state legislation and national policy trends shaping the future.

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