Source: a16z
As states pass divergent AI laws—California's strict transparency rules versus Texas's light-touch approach—courts have no established framework for resolving conflicts between them. Regulators and companies face contradictory requirements without judicial guidance. AI's technical complexity means judges lack both the precedent and expertise to weigh whether a regulation's burden on innovation outweighs its safety benefits. That uncertainty pushes the question to legislatures rather than courts, creating pressure for federal preemption. Washington's AI legislative outcome is far more consequential than typical state-level regulatory fragmentation.