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Events • June 12, 2025 

# What is the Opportunity Cost of State AI 

Proposals to regulate artificial intelligence (AI) at the state level continue to increase. Unfortunately, these proposals could potentially disrupt advances in this important technology, even if there is strong federal policy. This policy forum, which is related to an upcoming policy analysis on the topic, will explore the potential economic costs of state-level AI regulation as well as the potential barriers in the market it creates for both consumers and innovators. Are there ways state AI policy conversations may discourage or encourage the important policy conversations around AI innovation?

[![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) 
This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/). 

##### Featuring 

![Joshua Levine - cropped - circle](/sites/cato.org/files/styles/author_picture/public/2025-05/Joshua-Levine-cropped-circle.jpg?itok=PqgTjtlW) 

##### Joshua Levine 

Foundation for American Innovation

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](https://x.com/JoshuaTLevine) 

![Tatiana Rice - cropped - circle](/sites/cato.org/files/styles/author_picture/public/2025-05/Tatiana-Rice-cropped-circle.jpg?itok=h2_NelZA) 

##### Tatiana Rice 

Future of Privacy Forum

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](https://x.com/TatiianaRice) 

[![Matthew Mittelsteadt cropped](/sites/cato.org/files/styles/author_picture/public/2025-03/matt-mittelsteadth-cropped.jpg?itok=6jZ3qL7z)](/people/matt-mittelsteadt) 

##### [Matt Mittelsteadt](/people/matt-mittelsteadt)

Former Technology Policy Research Fellow, Cato Institute

[ 

](https://x.com/MattInThemitte) 

[![Jennifer-Huddleston-img-cropped2.jpg](/sites/cato.org/files/styles/author_picture/public/2023-06/Jennifer-Huddleston-img-cropped2.jpg?itok=nA04B0o7)](/people/jennifer-huddleston) 

##### [Jennifer Huddleston](/people/jennifer-huddleston)

Senior Fellow, Cato Institute

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](https://x.com/jrhuddles)