Democrats plan flood of AI bills when they take control of Congress
QQQ•Democrats plan legislation on data-center electricity costs, independent testing of advanced AI systems and liability for harm when they take control of Congress in January. Technology shares fell on concerns new rules could slow AI development, while Nasdaq futures pointed to a modest bounce.
1. Planned AI legislation
Democrats plan to introduce bills protecting consumers from electricity-cost increases tied to data centers, requiring independent testing of advanced AI systems and clarifying when companies can be held liable for harm caused by their products. The plans would mark a shift from the Republican-led Congress, which focused largely on promoting AI development.
2. Committee priorities
Senator Chuck Schumer said consumer protection from higher energy costs linked to data centers would be a priority next year. Representative Lori Trahan plans bills on independent safety evaluations and company liability, while Representative Zoe Lofgren said Democrats would pursue responsible regulation while fostering innovation.
3. Market and political hurdles
The legislation would face steep odds while President Donald Trump remains in office; he has dismissed calls for mandatory AI rules and said he would work with states embracing AI. Technology shares sold off on Thursday amid concerns about regulation and AI investment returns, with losses extending in Europe and Asia on Friday. Democrats also plan greater scrutiny of major AI companies, including OpenAI, Anthropic, Meta, Alphabet’s Google and SpaceX.
