State AGs Use Existing Laws to Police AI Business Practices
Companies that develop, deploy, or monetize AI-powered offerings face active enforcement from state attorneys general using existing consumer protection, privacy, and licensing laws, rather than waiting for new AI-specific regulations.
A growing number of state attorneys general are leveraging pre-existing legal frameworks—including state consumer protection statutes, data privacy laws, and professional licensing requirements—to investigate and penalize AI business practices, rather than holding off for the passage of new AI-specific legislation. This trend eliminates the buffer companies may have expected while AI regulatory rules were still being drafted at the state and federal levels. In-house counsel for organizations that build, integrate, or sell AI tools should immediately audit their AI workflows, data handling practices, and marketing claims against all applicable existing state laws, and update compliance programs to address AI-specific risk factors under these longstanding frameworks.