Quick Overview

  • U.S. public companies and other entities would face severe penalties for failing to disclose artificial intelligence's impact on the workforce under a comprehensive AI proposal draft released Wednesday by Tennessee Republican Senator Marsha Blackburn.
  • Under the draft, covered entities would be required to disclose AI-related layoffs, job changes, and other employment impacts to the Department of Labor on a quarterly basis. Noncompliant entities could face civil penalties of up to $1 million per violation, and both government and private individuals could file lawsuits to enforce reporting requirements.
  • The proposal aims to codify President Donald Trump's push for comprehensive federal AI legislation. Blackburn said in a press release: "Now, Congress must answer his call to establish a unified federal AI rulebook that protects children, creators, conservatives, and communities across America, and ensures the U.S. defeats foreign adversaries in the global race for AI dominance."

Deep Insights

This announcement marks Blackburn's shift from a high-level AI policy framework proposed in December, which outlined AI policy directions, to a formal legislative discussion draft with specific legal language.

The senator's latest move comes just over three months after Trump signed an executive order aimed at blocking state-level "burdensome" AI laws and promoting a national AI policy framework. The order called on the government to work with Congress to "ensure there is a minimal-burden national standard—rather than 50 inconsistent state standards."

Under Blackburn's proposal, the Department of Labor would compile quarterly reports on AI's impact on the workforce based on disclosures from covered entities, including public companies and selected private companies. Courts could impose injunctive relief to force companies to correct or complete disclosures, and prevailing plaintiffs would be entitled to recover reasonable attorney fees.

This push for increased transparency and reporting requirements comes amid growing national attention on AI's impact on workers. Federal Reserve Governor Lisa Cook said last month that AI may be driving "the most significant reorganization of work in generations." She said: "This shift could create new opportunities, but it may also come with some costs."

Blackburn's proposal also includes the following:

  • Requiring the Federal Trade Commission to establish rules that set "minimum reasonable" AI safety safeguards;
  • Authorizing the U.S. Attorney General, state attorneys general, and private parties to file lawsuits holding AI system developers liable under "unreasonably dangerous or defective product claims";
  • Requiring large frontier AI developers to implement protocols to manage and mitigate "catastrophic" risks associated with their systems and to submit regular reports to the Department of Homeland Security;
  • Platforms would be liable if they host unauthorized digital replicas while having actual knowledge that the replica was not authorized by the depicted individual.

The legislation would preempt conflicting state AI requirements but would allow states to establish rules providing stronger protections for minors.