The U.S. Senate is currently debating a revised federal moratorium on state regulations of artificial intelligence (AI), which is set to last for five years and allows states to implement rules concerning child online safety and the protection of artists' likenesses.

Senators Ted Cruz and Marsha Blackburn have reached a compromise on the One Big Beautiful Bill Act, reducing the initially proposed ten-year moratorium on state AI laws to five years.

This compromise, announced by Senator Blackburn, permits states to regulate certain issues as long as they do not impose an undue burden on AI.

Critics of the proposed ban, including both Republican and Democratic lawmakers as well as organizations like the ACLU and NAACP, argue that it could stifle innovation and compromise safety.

Despite the revisions, 17 Republican governors, led by Arkansas Governor Sarah Huckabee Sanders, are opposing the moratorium, asserting it undermines state authority to protect citizens.

Senator Maria Cantwell has criticized the amendment, claiming it fails to protect children and consumers while primarily benefiting tech companies.

Zimmerman, a Wisconsin lawmaker and tech executive, argues that even five years is excessive for such a rapidly evolving industry and suggests that Wisconsin may reject federal AI funding if the moratorium remains.

Supporters of the compromise believe it is essential to prevent a fragmented approach to AI regulation that could hinder innovation and allow other countries to surpass the U.S. in AI development.

The new provision exempts state laws related to unfair practices, child safety, rights of publicity, and protections for individuals' likenesses from the AI moratorium.

The Senate is expected to vote on several amendments to finalize the bill ahead of the July 4 deadline, while states like California are preparing their own AI regulations regardless of the federal outcome.

Critics, including Senator Cantwell, express concerns that vague standards in the moratorium could jeopardize state enforcement of laws and lead to extensive litigation.