In an open letter dated 28^th January and addressed to the US congress, the Insights Association and 42 other organisations discussed their “strong support” for a “targeted federal approach” that temporarily pre-empts state laws and regulations around AI to create a single, predictable standard while a national framework is developed.

Federal pre-emption aims to assert the precedence of federal law over state law in the US, meaning that if state law clashes with federal law, the federal law is given pre-eminence.

The letter said that some US states have introduced hundreds of AI-related bills “in an effort to respond quickly to a rapidly evolving technology”, and warned that in the absence of federal coordination, “a small number of states risk effectively setting de facto national standards, despite the fact that AI systems operate across state borders and throughout interstate commerce”.

This dynamic, the letter claims, “undermines democratic accountability” and therefore leaves the US “at a disadvantage relative to global competitors”.

Regulatory fragmentation has “direct consequences for affordability and competition”, the letter added.

“A patchwork of state-by-state rules raises compliance costs, which are ultimately passed on to consumers in the form of higher prices and fewer choices,” the letter said.

“Uniform federal standards help lower these costs by providing clarity and predictability, enabling companies to invest more in innovation, efficiency, and responsible deployment rather than duplicative legal compliance.”

The letter added: “Importantly, this approach is not about leaving AI unregulated. Rather, it is about creating space for congress to develop a thoughtful, balanced national framework while existing laws and federal agencies continue to apply.

“A time-limited pre-emption ensures that federal leadership is established without foreclosing future policymaking or locking in a permanent regulatory outcome before the technology and its uses are fully understood. This coalition welcomes and encourages congressional action that will ensure the US remains on the vanguard of AI development.”