The Virginia Institute for Public Coverage (VIPP) warns that Virginia’s once-thriving tech trade could be diminished to a shadow of its former self if Home Bill HB2094 turns into state legislation.
Though well-intentioned, the laws is deeply flawed, in keeping with the VIPP. The High-Risk Artificial Intelligence Developer and Deployer Act goals to stop “algorithmic discrimination” but when adopted, Virginia’s capability to compete in the quickly evolving Artificial Intelligence (AI) sector can be crippled by extreme compliance burdens, authorized ambiguities and astronomical costs.
“If HB2094 is handed, small businesses could see compliance costs between $10,000 and $500,000 yearly. Massive companies might face costs exceeding $10 million. While states like Indiana, Tennessee and Minnesota are actively courting AI investments with business-friendly insurance policies, Virginia should not throttle our personal businesses in a significant, rising sector,” Caleb Taylor, Director of Coverage on the Virginia Institute for Public Coverage, stated.
The bill covers so-called “high-risk synthetic intelligence programs” impacting vital areas like employment, housing, healthcare and schooling. The United States faces fierce competitors, notably from China, which has already unveiled AI fashions like DeepSeek R1. Virginia can not afford to grow to be much less productive.
“Discrimination in these areas is already unlawful underneath state and federal legal guidelines. As written, HB2094 will add utterly pointless compliance bills,” Taylor stated.
The influence goes past AI improvement. The info heart trade, a cornerstone of Virginia’s economic system, could additionally face devastating penalties. Knowledge facilities contribute 74,000 jobs, $5.5 billion in labor earnings and $9.1 billion in GDP yearly to Virginia, in keeping with a 2024 JLARC research. If Virginia continues down the regulatory path, the state dangers dropping AI innovators and the vital infrastructure that helps them.
The VIPP stated Virginia ought to be positioned as a frontrunner in moral, aggressive AI improvement—one which balances progress with duty. If burdens are imposed now on businesses, Virginia might lose its standing in the AI revolution earlier than it even begins. Virginia should reject HB2094 and pursue a path that fosters development, protects equity and secures a brilliant future in the worldwide AI race.