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Industry witnesses urge ‘privacy first’ approach and caution against overly broad AI law
Summary
Industry and coalition witnesses told the committee to build AI oversight on a comprehensive state privacy framework, prioritize interoperability and targeted sector rules, and avoid sweeping, prescriptive statutes that could hamper startups.
Industry representatives told the committee that data privacy laws should come first and serve as the foundation for any effective AI regulation, and they urged lawmakers to avoid overly broad, prescriptive AI bills that could create uncertainty for businesses and startups.
“Comprehensive data privacy legislation should come first because it creates the foundation for any responsible AI regulation,” William Chan, associate attorney with Mariner Strategies speaking for the State Privacy and Security Coalition, told the panel.
Why it matters: Industry witnesses argued that AI depends on data, and clear rules about data minimization, purpose limitation and security reduce the risk of misuse while giving businesses a predictable compliance baseline. They warned that overly broad AI statutes can sweep in common tools and create compliance burdens that smaller firms cannot meet.
What presenters said: William Chan recommended aligning state privacy law with an interoperable national model (citing examples like Virginia, Colorado and Connecticut), using data protection assessments for high‑risk processing, and avoiding trade‑secret carveouts that would swallow disclosure obligations. TechNet’s state advocacy (Renzo Soto) emphasized responsible innovation, sector‑specific solutions and standards such as NIST’s AI Risk Management Framework. Kyle Shannon (AI Salon/Storyvine) urged lawmakers to experiment: “If you haven’t played with generative AI, go play,” he said, arguing that hands‑on experience helps policymakers appreciate practical use cases and limits.
Industry concerns and examples: Witnesses referenced Colorado’s AI act as a caution: its broad definitions led to implementation confusion and a delayed effective date. TechNet and others recommended sandboxes, targeted public‑sector modernization bills, and workforce readiness investments rather than blanket prohibitions.
Next steps: Industry witnesses offered to work with lawmakers on drafting interoperable privacy legislation, targeted AI measures for specific harms (deepfakes, health‑care denials), and education/workforce programs to prepare residents for technology transitions. The committee expressed interest in follow‑up meetings with stakeholders.
The hearing produced no votes; members recessed for lunch and continued informal conversations about drafting privacy and AI policies.
