U.S. Tech Legislative & Regulatory Update

The second quarter of 2026 saw a significant surge in legislative and regulatory activity aimed at the artificial intelligence sector across both federal and state levels. Members of Congress introduced several bipartisan bills targeting chatbots, digital replicas, and AI standards, signaling a sustained interest in establishing federal guardrails. Meanwhile, state lawmakers have been even more active, enacting at least 35 AI-related bills to address emerging risks and governance requirements.

During the second quarter of 2026, the U.S. Congress introduced multiple legislative efforts focused on the regulation of chatbots, digital replicas, and nonconsensual AI-generated imagery. Although the path to final enactment for these specific bills remains unclear, they serve as critical data points for the ongoing bipartisan conversation regarding AI standards and are likely to be reintroduced in future sessions. These federal initiatives are being mirrored by the executive branch, which has employed various strategies to pursue its AI agenda, reflecting a broad interest in managing the technology's societal and economic impact.

At the state level, legislative activity has been particularly robust, with at least 35 AI-related bills enacted or passed during the quarter. These frameworks focus on key themes such as data privacy, biometrics, and the development of risk-based AI governance programs. Legal experts, including Jayne Ponder and Jennifer Johnson from Covington, highlight that these state laws, such as the Colorado AI Act and the California Consumer Privacy Act, are forcing companies to adopt more rigorous compliance measures, including consumer notice designs, consent flows, and data protection impact assessments.

Beyond new legislation, the regulatory environment is characterized by increased enforcement and oversight from federal and state agencies. The Federal Trade Commission (FTC) and state attorneys general are actively pursuing enforcement actions related to AI, data privacy, and cybersecurity. Furthermore, the quarter brought continued activity in related sectors such as connected and automated vehicles (CAVs) and the Internet of Things (IoT), where new safety laws and regulations are being integrated into the broader AI compliance landscape. This multi-layered regulatory approach underscores the growing complexity for tech companies operating in the AI market.