Ted Cruz's new bill would let AI companies set their own rules for up to 10 years

"The SANDBOX Act, if passed by Congress, would allow companies to apply for modifications to or waivers from any "obstructive regulations" to the testing and deployment of products or services that use or contain "in whole or in part" at least one AI system. In return, companies would be required to disclose plans to mitigate consumer safety and financial risks."

"The power to grant those exceptions would rest with the federal agency whose regulations would otherwise be in effect, such as the Federal Trade Commission, which enforces current online privacy protections for children. Waivers would be automatically granted if the agency does not respond within 90 days. If rejected, the company would be able to appeal to the White House Office of Science and Technology Policy (OSTP), which would oversee the sandbox program and have the authority to override the denial."

"Technology accountability group The Tech Oversight Project calls the bill a "sweetheart deal for Big Tech CEOs" that potentially gives companies that donate to Donald Trump a different set of rules than smaller startups. Consumer advocacy organization Public Citizen warns that the bill would allow Silicon Valley to apply the "move fast and break things" attitude to laws and regulations. Both groups raise concerns about the bill giving the OSTP the power to overrule federal agencies."

Sen. Ted Cruz introduced the SANDBOX Act to create a regulatory sandbox allowing AI companies to seek waivers from "obstructive regulations" for products that use or contain AI. Companies granted waivers must disclose plans to mitigate consumer safety and financial risks. Waivers would last two years and could be renewed up to ten years. Federal agencies would have initial authority to grant exceptions, with automatic approval after 90 days if there is no response and OSTP able to override denials. Annual reports to Congress would track rule modifications and waivers. Advocacy groups warn the bill could favor large tech and weaken agency enforcement.

Read at The Verge