2 AI-related laws N.C. needs right now
Despite the technology's sweeping impacts, the General Assembly hasn't done much to address AI. A new task force and campaign disclosure laws would be a good start.
There’s no hotter topic in business than artificial intelligence. But in North Carolina, the conversation has been oddly lacking.
So far, our General Assembly has passed only one AI-related bill that I can find1. House Bill 591, introduced by Rep. Ted Davis (R-New Hanover) and enacted last July, updates sexual exploitation and extortion laws to include AI-generated images. An important step, to be sure2.
But this isn’t going to cut it. To keep in front of a technology set to reshape the modern economy, North Carolina needs a lot more.
The AI laws the General Assembly should pass this session
North Carolina should move quickly in this session to implement two AI-related laws — one setting up a task force to study the issue in depth, and the other to require political ads to disclose the use of AI.
Here’s a breakdown of how other states have handled these two types of laws, and how I think North Carolina should handle them.
Task force law
Normally, I roll my eyes at new task forces and commissions. But for a topic as complicated and sweeping as this one, it’s warranted.
At this point, more than half of U.S. states have put together an AI task force to examine how the state should respond to the new technology.
About half were created by executive order, while the other half were enacted by state law. These state AI task forces generally fall into one of two categories: Either they specifically look at how AI can make government services more efficient, or they take a broader scope — examining how AI will impact areas like the economy, education, workforce development, and consumer protection.
North Carolina needs a mix of both. I actually quite like a bipartisan bill introduced last year by former Rep. Jason Saine (R-Lincoln) and Rep. Zack Hawkins (D-Durham).
Had it passed, it would have brought together lawmakers, industry experts, academics, and local leaders to form the panel. The group would recommend laws in areas like improving government services and protecting individual privacy, both important on the right. In a nod to the left, it would look at preventing unfair decisions in areas like housing, jobs, and healthcare. The task force would also explore ways to attract new businesses and foster innovation, ensuring AI benefits the state’s economy and residents directly.
Sounds like a good place to start. I can think of a few areas where AI could definitely improve state services.
Faster disaster relief: Use AI to coordinate the response and get emergency resources where they’re needed most more quickly.
Better roads: Optimize traffic flow and target infrastructure spending where it matters.
Fraud-proof benefits: Catch waste and fraud in unemployment claims with smarter systems.
Stronger schools: Identify teaching strategies that work and personalize education to each student.
Streamlined courts: Reduce case backlogs and make the system more efficient.
Election disclosure law
North Carolina can also go ahead and move forward with a law requiring disclosure of AI used in political ads.
The national political class fretted that 2024 would be the year AI dominated an election cycle, but that didn’t come to pass. Yeah, there was a minor dust-up over a (tamely) altered ad in Indiana. And in North Carolina, a Raleigh group called Americans for Prosparody dropped tens of thousands of dollars on a satirically exaggerated AI hit on Mark Robinson.
But as AI image and video generators improve, they’ll inevitably get wider use.
States that have similar laws so far all require campaigns to include disclosures when AI is used to manipulate images, video or audio in political ads.
Generally, they require disclaimer text on screen for the duration of the ad, or a disclaimer read at the start and end of an audio ad – similar to “paid for by” disclosure requirements that are now commonplace. Most states offer exceptions for satire, parody, or news reports.
North Carolina’s law should blend elements from most of these laws. Provisions should include:
Disclosures required at all times, not just right before an election
Disclosures should include a link to a specific description of what is manipulated
Any citizen can file a complaint
The state elections board should adjudicate complaints, with appeals to the court system possible
Civil penalties — damages, essentially — should be on the table
What comes after that: A comprehensive AI law for North Carolina
These two laws set the table for what comes next. I don’t know what they would entail; that’s the point of moving cautiously.
While most states are still in “study” mode, a handful have already taken a crack at a broader regulatory framework.
California, predictably, has charged ahead by enacting nearly two dozen AI-related laws spanning areas like transparency, consumer protection and healthcare.
Colorado and Utah have taken more measured approaches, though in very different ways. Blue-state Colorado’s law tries to define “high-risk” AI systems and algorithmic discrimination, focusing on areas like employment and housing. Red-state Utah’s narrower law basically requires clear disclosures from companies using AI.
North Carolina’s not ready for either approach yet. Utah’s version seems more prudent, but it’s worth observing how these laws play out before North Carolina drafts its own regulations.
That’s the role of North Carolina’s task force.
Our goal shouldn’t be to overregulate but to strike the right balance — making state government more efficient while creating a business-friendly environment that attracts startups and investment.
Quick hits
Much of the Blue Ridge Parkway through North Carolina remains closed. As repairs are made, I hope the federal government will consider adding bike and pedestrian lanes along the parkway. The world has changed a lot since 1935 when the Blue Ridge Parkway’s construction began, and this feels like an excellent way to increase tourism in western North Carolina. Perhaps U.S. Rep. Chuck Edwards or U.S. Sen. Ted Budd can make this happen.
Listening to the Do Politics Better podcast is always a good idea, but this week's episode is particularly worthwhile. The interview with freshman Rep. Mike Schietzelt is fantastic. Super impressive guy and he's got a bright future. Plus, he’s got great advice on when to run for public office (🔒).
I broke the news this week that Andy Nilsson is about to launch a campaign for U.S. Senate. The biggest question I got after that is whether Nilsson is running in earnest or just trying to split the anti-Tillis vote. While the net effect of multiple challengers — which will almost certainly be the case — will be to split that vote and give U.S. Sen. Thom Tillis a better chance of winning. But I believe Nilsson plans to run a legitimate race, and he’s approaching it in the best way available to him.
This country doesn't do a great job measuring school effectiveness. The metrics we have, like per pupil spending, are woefully inadequate. That's why I really like this post that attempts to compare how individual demographic groups perform in one state versus another. Charlotte-Mecklenburg Schools already does this sort of thing, and it seems more useful.
Behind the paywall: A quick note on a subscriber-only feature
Earlier this week, I sent our Premium subscribers a quick-hit response piece with a video concept and email template that could help conservatives push back against Gov. Josh Stein’s lack of focus.
The “Messaging Memo” will be a regular feature behind the paywall, giving you ideas for how to put together statements, social media posts and emails in response to breaking news. The goal is to help people running campaigns or political organizations. But you’ll need to subscribe to get them.
Important reads
Gen Z trending more conservative in North Carolina amid surplus of alternative media sources (Carolina Journal)
How Destin Hall Rose From Humble Beginnings to House Speaker (The Assembly)
Top spenders on social media this week
Question of the week
There were no major updates in the Judge Jefferson Griffin challenge to the Supreme Court results last week. Yeah, Griffin filed his briefing but it doesn’t move the needle much. The national media is now having a field day with it all, though.
I asked you last week who you thought would ultimately be seated on the court. A full 75% of you said you think it will be Justice Allison Riggs, while 16% said Griffin and 9% said there’d be a new election.
I think you’re right — Riggs will ultimately prevail in this challenge, most likely. But if that doesn’t happen, it’s much more likely that the Supreme Court would order a new election than seat Griffin unilaterally.
Here’s this week’s question.
To be fair, the most recent state budget also includes a little money for New Hanover and Davidson county schools to figure out how to use AI in school safety.
The executive branch hasn’t done much either. The IT department of state government put out a short document basically saying that North Carolina should use AI transparently and fairly — but without much guidance beyond that.
I think you must mean U. S. Rep Chuck Edwards can help with the Blue Ridge Parkway. Chuck McGrady is a former N. C. House Member