As the U.S. House of Representatives works to pass a new budget bill, a recent amendment in the bill is drawing much concern regarding artificial intelligence (AI).

The stipulation would ban states from regulating AI for the next ten years, preventing the enforcement of laws on AI models and automated decision systems.

Critics argue that this would leave consumers without protection on how AI uses their data or makes decisions. Many states, including California and Utah, have introduced AI regulations for healthcare, addressing issues like automated claim denials, patient consent, and AI oversight in mental health.

If the bill passes with this stipulation, it will block state efforts and halt future state regulation of AI in healthcare. With no comprehensive federal framework currently in place, this would impact how organizations approach compliance, operational workflows, and safeguards related to AI-drive processes.