Artificial Intelligence

The Future is Now: Artificial Intelligence (AI) Policy to Supercharge the U.S. Economy and Defeat China

The AI revolution is here. The policies we set today will determine whether America leads or lags. State lawmakers and governors must step up to foster AI innovation while preventing government overreach.

Smart AI policy will:

• Drive breakthroughs in healthcare and push humanity forward.
• Ensure national security by keeping America ahead of China in AI.
• Support fiscal responsibility by leveraging AI for productivity gains to grow out of our national debt.

Why AI Policy Matters

Healthcare: AI is revolutionizing medicine—early disease detection, drug discovery, and patient care are all improving dramatically.

• Early deployments of generative AI are already improving patient outcomes by up to 45 percent in clinical trials for chronic diseases.
• AI-driven efficiencies could cut U.S. healthcare costs by $150 billion a year by 2026.
• AI could manage 85 percent of patient interactions in the health system, from answering questions to triaging care—freeing up doctors and nurses to focus on critical patient needs

National Security: China is racing ahead with AI investments—if America does not lead, we will fall behind.

• China is investing massively and aims to be the world’s top AI superpower by 2030.
• National security expert Ylli Bajraktari warned that the window for action is closing fast: “We only have one budget cycle to get this right … or everything will happen in China.”
• Future hard power hegemony, intelligence capabilities, and economic leadership all depend on who leads in AI.

Economic Growth: AI will add trillions to the economy, increase productivity, and streamline government operations.

• Traditional solutions to our $33 trillion national debt—raising taxes or slashing programs—are politically fraught and economically painful.
• AI can increase GDP and government revenues without heavier taxes. In fact, economists estimate AI could lift U.S. GDP by 15 percent or more over the next decade.
• Deploying AI in public operations could free up roughly 30 percent of government workers’ time within 5–7 years, allowing agencies to do more with less. One study projects $1.75 trillion per year in productivity gains globally in the public sector by 2033.

The Wrong Approach: AI Bureaucracy and Overregulation

• Heavy-handed government regulation will strangle innovation and benefit Big Tech incumbents.
• The EU’s AI Act is a cautionary tale—excessive red tape is already driving AI startups away.
• NGOs and old Biden directives are pushing burdensome AI laws into state legislatures, copying bad regulatory ideas across the country.

The Right Approach: Smart AI Policy

1. Nurture Innovation, Not Bureaucracy
   • Remove regulatory barriers that slow AI development.
   • Avoid one-size-fits-all AI licensing and mandates.
   • Use regulatory sandboxes to allow AI startups to experiment without crushing compliance costs.
2. Use AI to Make Government More Efficient
   • AI can streamline government services, cutting waste and saving taxpayer money.
   • States should lead by example—adopt AI internally without imposing rules on private companies.
3. Protect Citizens Without Killing Innovation
   • Enforce laws against AI-generated child exploitation material, fraud, and defamation—don’t invent new, vague regulations.
   • Hold criminals accountable, not the innovators building AI tools.
4. Keep the U.S. Ahead in AI
   • The U.S. must beat China in AI—burdensome state laws will drive innovation offshore.
   • States should focus on workforce development and AI-friendly economic zones instead of tech crackdowns.

Lead on AI Policy

• State lawmakers and governors: do not let bureaucrats and NGOs dictate your state’s AI future.
• Push back against bad AI bills and instead champion smart, innovation-driven policy.
• Use the Cicero Institute’s AI principles, model bill, and research to craft policies that work.