US Democrats are preparing an aggressive legislative push to regulate artificial intelligence (AI) and rein in data-centre expansion when they take control of Congress in January 2027.
The proposed measures could mark a significant departure from the Republican-led Congress, which has largely prioritised accelerating AI development over imposing restrictions on the technology, according to Reuters.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The legislative agenda is expected to focus on three major areas which are protecting consumers from rising electricity bills linked to data centres, introducing independent safety assessments for advanced AI models and establishing clearer legal accountability for AI companies when their products cause harm.
The proposals come amid growing public opposition to the rapid expansion of data centres and their enormous energy requirements.
Senate Democratic leader Chuck Schumer, who is expected to become majority leader, identified rising electricity costs associated with data-centre expansion as a priority for next year.
Meanwhile, Representative Lori Trahan of Massachusetts plans to introduce legislation requiring independent experts to evaluate leading AI models against established safety standards. She also wants to clarify the legal responsibility of companies when their AI systems cause harmful outcomes.
Representative Zoe Lofgren, who is seeking to chair the House Science Committee, has also indicated that Democrats will pursue regulations that address AI-related risks without undermining technological innovation.
Abdul El-Sayed, a newly elected Democratic senator from Michigan, has advocated creating an independent federal agency with authority to oversee AI developers and enforce regulations.
Also Read | Democrats Target Apple, Meta And Elon Musk's Companies In Planned Congressional Probes. Here's Why
AI Companies Face Greater Congressional Scrutiny
Beyond legislation, Democrats intend to use their control of congressional committees to intensify scrutiny of major technology companies, including OpenAI, Anthropic, Meta, Alphabet's Google and SpaceX.
Lawmakers have already sought information from these companies about their security practices and instances where AI systems have acted in ways their developers did not intend.
Representative Greg Casar has also called for AI executives to testify under oath, signalling the possibility of more confrontational congressional hearings.
The political momentum behind regulation reflects growing public concern. A Reuters-Ipsos poll published in October found that most US voters believe the Trump administration and Congress are not taking AI risks seriously enough and support stronger government oversight.
However, passing binding legislation could prove difficult while President Donald Trump remains in office. Trump has repeatedly opposed mandatory federal restrictions on AI and reiterated his support for states embracing the technology.
Also Read | Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
The regulatory push has already unsettled investors. Technology stocks declined sharply on Thursday as concerns over potential restrictions added to broader worries about the massive capital expenditure required for AI infrastructure and uncertain returns.
Nevertheless, Democrats could use must-pass legislation to advance AI-related provisions or build support for overriding a presidential veto if they secure sufficient bipartisan backing. Raymond James policy research manager Ed Mills believes the likelihood of legislation is higher than markets currently anticipate.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.