Artificial intelligence has been around since the 1950s, but its sudden emergence as a consumer product and its potential to disrupt nearly every activity and industry has state lawmakers scrambling to address it. A dozen states have already enacted laws demanding agency research of AI and its use and consequences, while half the states have introduced bills to address its application both in government and the broader economy. AI has incredible potential for handling data, automating repetitive tasks and generally making many functions easier for humans to handle. But lawmakers at this point are rushing to get ahead of possible downside risks. President Joe Biden issued an executive order laying out guidelines for “safe, secure and trustworthy use” of AI in October, while the European Union reached agreement on a sweeping set of policies last month. (. . .) The flood of federal funds that brought double-digit growth and record surpluses to state budgets in recent years is receding, but fiscal 2024 state budgets generally reflected a return to business as usual with modest growth in spending. States have long been aware that federal aid would have an end date, says Kathryn White, director of budget process studies for the National Association of State Budget Officers (NASBO). They have largely used fiscal recovery funds for one-time investments, or investments that could strengthen their fiscal resiliency. Even so, the combination of reduced federal aid and decreased tax revenue could create challenges.
Source: Governing
