Artificial intelligence (AI) is a hot topic among lawmakers, as evidenced by the abundance of statewide proposals and task forces to regulate and learn more about the ever-evolving technology.
The current lack of regulations worries consumers, professionals and lawmakers alike. States are beginning to take action and create legislation surrounding AI. According to the Pew Research Center, 52% of Americans are more concerned than excited about the frequent usage of AI.
“[Lawmakers] worry about the ethical integrity of AI and it’s not regulated,” said Marta Zaniewski, vice president of state regulatory and legislative affairs at AICPA® & CIMA®, together as the Association of International Certified Professional Accountants. “It’s a nuanced issue that is changing monthly. States are grappling with ‘What can we do now to protect consumers and the public that we serve?’”
Tracking the different AI-related bills, studies and task forces within states ensures that organizations like the AICPA understand the breadth of the issue, can mount statewide advocacy and education efforts and determine any potential ramifications to the accounting and finance professions.
“Our role as AICPA, and the role of the state societies, is to be that voice of reason in the room and to point out certain issues … that no one else is thinking of and provide guidance to what that legislation should look like,” said Zaniewski.
Ethical integrity of AI and legislative actions
Washington is one state that has developed an AI task force and introduced legislative measures to ensure that AI is being used responsibly within the state. These measures will also help outline the development of generative AI by the private and public sectors. The AI Task Force would be responsible for developing a definition for the term generative AI and would ensure that AI is being used in a way that is ethical, transparent, accountable and responsible.
“Task forces, to me, signify [lawmakers] really want to learn about the issue and not just make wholesale solutions,” said Zaniewski. “They are also willing to engage various stakeholders in the states to get their input.”
A big AI concern among lawmakers is the potential for algorithmic discrimination,and several states, including California, Illinois and New Jersey, proposed bills that solely focused on the issue. discrimination occurs when automated systems contribute to unjustified and unfair treatment of individuals or groups based on their race, gender or age.
The Illinois General Assembly introduced two different House bills, HB 5116 and HB 5322, which would require AI developers to annually assess the impact of any automated decision-making tool. Both bills were referred to the Rules Committee but were never formally voted on.
AB 4030 and SB 1588, two companion bills introduced in New Jersey, would prohibit the sale of AI automated decision-making tools that have not undergone a bias audit.
In January 2024, the Virginia General Assembly put forth legislation that would create the Commission on Artificial Intelligence. The group would advise the governor on how to address AI issues, such as developing ethical principles, and would make advisory recommendations based on its findings.
New Jersey and New York have also introduced legislation that covers the issue of workforce reduction due to automation. New Jersey aims to regulate how an employer uses AI when hiring with its bills AB 3854 and AB 3911. AB 9314 in New York would impose requirements on employers who use AI decision tools during their hiring processes.
“CPAs should care about AI legislation and creation of task forces as it gives a preview of how legislators in their states are looking to regulate and legislate an emerging technology,” said Zaniewski. “Given how quickly AI is developed, CPAs should pay attention to how policymakers will look to leverage AI legislation in the public accounting space, specifically if AI will be looked at as a tool for accounting services or if AI will look to encroach on key aspects of accounting.”
A cautious approach to AI
Americans are approaching AI cautiously — 67% of Americans are more concerned that the government won’t go far enough in regulating chatbots over the technology itself, according to Pew. But even with their caution, Americans do see the benefits of AI technologies in education, healthcare and medicine, the workplace and more.
State-level discussions will continue as AI capabilities are tested, developed and better understood.
“Tracking and monitoring is important to keep a pulse on this issue as it is a very nuanced topic,” said Zaniewski. “Given the various layers of AI, and how legislators are still struggling to wrap their arms around it, CPAs can make sure that as conversations are occurring at their state capitals, the voice of the profession is consistently represented.”
Stay informed on the rapidly evolving landscape of AI regulation and other federal issues with resources, articles and guides from the AICPA Advocacy Team. You can also get involved in advocacy efforts and champion the profession.