Silicon Valley's war against state AI laws is over, and the tech industry is losing. State legislators, emboldened by public outrage, ineffective federal pushback, and a surge in pro-regulation funding, are now taking the lead on AI regulation. This shift is marked by a defiant mood in statehouses, with lawmakers ignoring tech lobby warnings and pushing forward with bills addressing AI safety, auditing standards, and chatbot protections for kids. The tide has turned, and tech lobbyists are now rushing to work with state legislators, recognizing the futility of their previous efforts to strong-arm or freeze out states. The public's support for AI regulations is overwhelming, and the tech industry's threats to punish pro-regulation lawmakers are backfiring. Governors, too, are stepping in as a backstop, vetoing or amending AI laws that are too lenient. The era of Silicon Valley's dominance in AI regulation is ending, and the future of AI governance is being shaped by state legislatures and public sentiment.
