Supreme Court Ruling on Chevron Complicates AI Regulation

The U.S. Supreme Court has struck down "Chevron deference," a 40-year-old precedent that required courts to defer to federal agencies' interpretations of congressional laws. This decision significantly impacts the regulatory landscape, particularly for emerging technologies like artificial intelligence (AI).

Impact on Regulatory Power

Chevron deference allowed federal agencies to create rules when congressional statutes were ambiguous. With its removal, courts will now exercise their own legal judgment, which could have far-reaching consequences. Axios’ Scott Rosenberg highlights that Congress must now predict future enforcement circumstances with its legislation, as agencies can no longer apply broad rules to new situations.

Challenges for AI Regulation

This shift could effectively halt attempts at nationwide AI regulation. Congress has already struggled to pass basic AI policy frameworks, prompting state regulators to step in. Any new AI regulations must be highly specific to withstand legal challenges—a daunting task given the AI industry's rapid and unpredictable evolution.

Justice Elena Kagan addressed this issue during oral arguments:

"Let’s imagine that Congress enacts an artificial intelligence bill and it has all kinds of delegations. Just by the nature of things and especially the nature of the subject, there are going to be all kinds of places where, although there’s not an explicit delegation, Congress has in effect left a gap. ... Do we want courts to fill that gap, or do we want an agency to fill that gap?"

Future of AI Regulation

With courts now responsible for filling these gaps, federal lawmakers might find AI regulation efforts increasingly futile, potentially abandoning their AI bills. This development has made regulating AI in the U.S. significantly more challenging.