Developers, states or the federal government: who’s really responsible for AI regulation?

Developers, states or the federal government: who’s really responsible for AI regulation?

Michael Pastor, New York Law School’s Dean of Technology Law, discusses the intensifying debate for AI legislation and the urgency to regulate the rapidly advancing technology. He identifies the pros and cons of state regulation in the absence of federal regulation, and breaks down the real meaning behind what it means “stifle innovation.” While AI as a technology is different than the advent of the internet or social media, Pastor said one thing is clear: we’ve been at this crossroads before.

Top stories this week:

After a monthslong investigation, Colorado officials have rescinded more than $100 million in Broadband Equity, Access, and Deployment funding after it received whistleblower complaints alleging an internet service provider engaged in “financial mismanagement and misuse of grant funds.” The Colorado Broadband Office said it froze BEAD funding to Maverix Broadband, Inc., an ISP that provides internet services across the state, after inquiries found payments for services and materials that were not received and unpaid vendors.

Virginia Gov. Abigail Spanberger is calling on Congress to establish federal guardrails for artificial intelligence, arguing that the technology’s rapid development is creating risks states cannot address on their own. In a letter sent to congressional leaders Tuesday, Spanberger cited concerns about data privacy, workforce displacement, cybersecurity and the large amounts of energy and other resources required to power AI systems. She argued that a national framework is needed rather than leaving oversight primarily to individual states or technology companies.

Dru Rai, who has served as New York state chief information officer and director of the Office of Information Technology Services since 2023, has unexpectedly left the role. An ITS spokesperson declined to share details on Rai’s departure, saying the office doesn’t comment on “personnel issues.” Jenson Jacob, who has served as deputy CIO since Sept. 2025, has been named acting CIO. Rai was scheduled to give the welcome remarks at the New York Digital Government Summit 2026 Tuesday morning, but Jacob gave them instead.

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