Key Findings

  • A recent survey by the U.S. Chamber of Commerce shows that a growing number of small business owners are concerned aboutartificial intelligence regulationpotentially impacting their businesses.
  • Nearly two-thirds (65%) of respondents worry about compliance and litigation costs stemming from differing state laws on privacy, AI, and technology. According to the report released Monday, this figure is up 14 percentage points from a 2024 survey.
  • "This year, we found that small businesses facethe highest level of concern over the patchwork of state laws, which could stifle AI adoption and growth," said Jordan Crenshaw, senior vice president of the Chamber's Technology Engagement Center, in a statement. "That's why policymakers need to establish a single national framework that allows these businesses to thrive, rather than stifling their success."

Deeper Analysis

The report notes that many states are proposing or implementing regulatory measures requiring businesses to disclose AI usage to customers, conduct AI risk assessments, explain how AI may affect customer interactions, and provide human oversight for systems making significant decisions. Fewer than a third of respondents said they are fully prepared to meet such obligations.

Among its recommendations, the report calls for a national AI framework that preempts comprehensive state AI laws, "while preserving state attorneys general's ability to enforce technology-neutral laws to address specific harms such as consumer protection, privacy, and anti-discrimination where appropriate."

The findings come as the Trump administration isthreatening to withhold federal AI funding from states with burdensome AI regulations。

The AI action plan released by the White House last month directs the Office of Management and Budget to work with federal agencies that have AI-related discretionary funding programs to ensure state AI regulatory environments are considered in funding decisions.

The document states: "The federal government should not allow AI-related federal funds to flow to states with burdensome and wasteful AI regulations, but it should not interfere with states' authority to pass reasonable laws, as long as those laws do not unduly restrict innovation."

Meanwhile, President Donald Trump has gone beyond his own plan, calling for afederal AI standardthat "preempts all states."

According to an analysis by the Brookings Institution, as of June 27, a total of260 AI-related state measureswere introduced during the 2025 legislative sessions, with 22 having been passed.

Analysts note that anAI regulation（AI statute) passed by Colorado in 2024 and set to take effect next year stands out for its breadth and comprehensiveness. Other states that have enacted AI regulations include New York, Texas, and California.

"A cloud hangs over this progress at the federal level, and it remains unclear how this will affect how states approach AI," the Brookings report states.