Alerts3.20.26
Proposed Senate Bill Could Bring Sweeping Changes to AI Liability, Section 230, and State Regulation, and Introduces Protections for AI Use
Highlights
- The Trump America AI Act (the Bill) is a discussion draft that would impose liability and a duty of care on AI developers and deployers to prevent foreseeable harm, moving AI regulation toward a products liability framework.
- The Bill also includes several provisions that preempt certain state AI regulations, while also explicitly permitting states to enact laws with greater protections than the Bill offers.
- Despite its stated goal of establishing one federal rulebook, the draft's general savings clause may leave substantial room for generally applicable state consumer-protection, bias-audit, transparency, and algorithmic-accountability laws.
- The draft would repeal Section 230 two years after enactment, significantly reshaping platform and AI litigation exposure.
- Early reaction suggests many state algorithmic-accountability, bias-audit, and transparency laws may survive under the draft's general savings clause — clients should not assume state AI compliance programs can be retired.
On March 18, 2026, Sen. Marsha Blackburn released the Trump America AI Act, a nearly 300-page discussion draft seeking to establish a regulatory framework around AI. The proposed legislative framework incorporates provisions from previous proposed bills such as the Kids Online Safety Act and No Fakes Act. The Bill also seeks to preempt individual state AI regulatory frameworks. The draft has not yet been formally introduced or referred to a committee as of the date of this alert.
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