Although artificial intelligence (AI) has been available for many years, the introduction of ChatGPT in November 2022 captured the public’s attention and elevated AI as a top priority for state legislatures and executive branch officials. Since 2022, thousands of bills have been introduced aimed at regulating the multifaceted applications of artificial intelligence. These legislative efforts cover a variety of key areas, such as health care, employment, criminal and civil law, housing, and the overall protection of consumers. With Congress apparently unwilling or unable to enact legislation regarding AI, the states, as laboratories of democracy, are leading the way on this issue.

AI and related technologies are now part of the public’s daily discourse on science and policy. To be sure, AI tools are utilized in our smartphones, GPS systems, medical technology, workplace software, and even in school classrooms. The enormous value of AI tools for solving technological problems and facilitating medical breakthroughs was especially evident in October 2024 when two Nobel Prizes (Physics and Chemistry) were awarded to scientists working on AI topics. The Nobel committee noted that AI-enabled research benefits humankind by allowing us to “develop new materials, better understand antibiotic resistance, and create images of enzymes that can decompose plastic.” These wide-ranging applications of AI in industry, government, and business have attracted the attention of lawmakers in statehouses across the country. Legislators are actively crafting bills that promote AI innovation while protecting minors, safeguarding constituents’ privacy, and preventing cybersecurity breaches. Thus, state leaders will play a key role in shaping the use and governance of AI for their residents.

This report builds upon previous analyses of state-level AI policy and offers new insights for lawmakers and policy professionals. We discuss recent federal and state legislation regarding AI and emerging technologies for the states. We also consider thorny issues regarding the use and governance of AI and related technologies. How do states promote the development of the AI sector, while safeguarding residents’ personal data and protecting intellectual property? Do states have the appropriate infrastructure in place to spur AI development and innovation? To address these issues, we introduce the CSG State AI Competitiveness Indicators that rank states on seven technology and human talent dimensions supporting the AI sector. This benchmarking allows leaders to compare their state to a relevant peer group and think of strategies they may want to pursue to boost their economy. Collectively, these resources offer actionable insights for state legislators and decision makers navigating a complex AI landscape.

CSG AI Report: What’s New?

• Explicit comparisons of states on AI competitiveness with their peers in each CSG region
• 2025 legislative tracking of bills introduced in statehouses regarding support for the development and innovation of the AI sector
• Analyses of the most recent state-level data available on favorable AI political contexts, technological factors, and AI human talent elements for each state