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How a GOP rift over tech regulation doomed a ban on state AI laws in Trump’s tax bill

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NEW YORK (AP) — A controversial bid to deter states from regulating artificial intelligence for a decade seemed on its way to passing as the Republican tax cut and spending bill championed by President Donald Trump worked its way through the U.S. Senate.

But as the bill neared a final vote, a relentless campaign against it by a constellation of conservatives — including Republican governors, lawmakers, think tanks and social groups — had been eroding support. One, conservative activist Mike Davis, appeared on the show of right-wing podcaster Steve Bannon, urging viewers to call their senators to reject this “AI amnesty” for “trillion-dollar Big Tech monopolists.”

He said he also texted with Trump directly, advising the president to stay neutral on the issue despite what Davis characterized as significant pressure from White House AI czar David Sacks, Commerce Secretary Howard Lutnick, Texas Sen. Ted Cruz and others.

Conservatives passionate about getting rid of the provision had spent weeks fighting others in the party who favored the legislative moratorium because they saw it as essential for the country to compete against China in the race for AI dominance. The schism marked the latest and perhaps most noticeable split within the GOP about whether to let states continue to put guardrails on emerging technologies or minimize such interference.

In the end, the advocates for guardrails won, revealing the enormous influence of a segment of the Republican Party that has come to distrust Big Tech. They believe states must remain free to protect their citizens against potential harms of the industry, whether from AI, social media or emerging technologies.

“Tension in the conservative movement is palpable,” said Adam Thierer of the R Street Institute, a conservative-leaning think tank. Thierer first proposed the idea of the AI moratorium last year. He noted “the animus surrounding Big Tech” among many Republicans.

“That was the differentiating factor.”

Conservative v. conservative in a last-minute fight

The Heritage Foundation, children’s safety groups and Republican state lawmakers, governors and attorneys general all weighed in against the AI moratorium. Democrats, tech watchdogs and some tech companies opposed it, too.

Sensing the moment was right on Monday night, Republican Sen. Marsha Blackburn of Tennessee, who opposed the AI provision and had attempted to water it down, teamed up with Democratic Sen. Maria Cantwell of Washington to suggest striking the entire proposal. By morning, the provision was removed in a 99-1 vote.

The whirlwind demise of a provision that initially had the backing of House and Senate leadership and the White House disappointed other conservatives who felt it gave China, a main AI competitor, an advantage.

Ryan Fournier, chairman of Students for Trump and chief marketing officer of the startup Uncensored AI, had supported the moratorium, writing on X that it “stops blue states like California and New York from handing our future to Communist China.”

“Republicans are that way … I get it,” he said in an interview, but added there needs to be “one set of rules, not 50” for AI innovation to be successful.

AI advocates fear a patchwork of state rules

Tech companies, tech trade groups, venture capitalists and multiple Trump administration figures had voiced their support for the provision that would have blocked states from passing their own AI regulations for years. They argued that in the absence of federal standards, letting the states take the lead would leave tech innovators mired in a confusing patchwork of rules.

Lutnick, the commerce secretary, posted that the provision “makes sure American companies can develop cutting-edge tech for our military, infrastructure, and critical industries — without interference from anti-innovation politicians.” AI czar Sacks had also publicly supported the measure.

After the Senate passed the bill without the AI provision, the White House responded to an inquiry for Sacks with the president’s position, saying Trump “is fully supportive of the Senate-passed version of the One, Big, Beautiful Bill.”

Acknowledging defeat of his provision on the Senate floor, Cruz noted how pleased China, liberal politicians and “radical left-wing groups” would be to hear the news.

But Blackburn pointed out that the federal government has failed to pass laws that address major concerns about AI, such as keeping children safe and securing copyright protections.

“But you know who has passed it?” she said. “The states.”

Conservatives want to win the AI race, but disagree on how

Conservatives distrusting Big Tech for what they see as social media companies stifling speech during the COVID-19 pandemic and surrounding elections said that tech companies shouldn’t get a free pass, especially on something that carries as much risk as AI.

Many who opposed the moratorium also brought up preserving states’ rights, though proponents countered that AI issues transcend state borders and Congress has the power to regulate interstate commerce.

Eric Lucero, a Republican state lawmaker in Minnesota, noted that many other industries already navigate different regulations established by both state and local jurisdictions.

“I think everyone in the conservative movement agrees we need to beat China,” said Daniel Cochrane from the Heritage Foundation. “I just think we have different prescriptions for doing so.”

Many argued that in the absence of federal legislation, states were best positioned to protect citizens from the potential harms of AI technology.

“We have no idea what AI will be capable of in the next 10 years and giving it free rein and tying states hands is potentially dangerous,” Rep. Marjorie Taylor Greene wrote on X.

A call for federal rules

Another Republican, Texas state Sen. Angela Paxton, wrote to Cruz and his counterpart, Sen. John Cornyn, urging them to remove the moratorium.

She and other conservatives said some sort of federal standard could help clarify the landscape around AI and resolve some of the party’s disagreements.

But with the moratorium dead and Republicans holding only narrow majorities in both chambers of Congress, it’s unclear whether they will be able to agree on a set of standards to guide the development of the burgeoning technology.

In an email to The Associated Press, Paxton said she wants to see limited federal AI legislation “that sets some clear guardrails” around national security and interstate commerce, while leaving states free to address issues that affect their residents.

“When it comes to technology as powerful and potentially dangerous as AI, we should be cautious about silencing state-level efforts to protect consumers and children,” she said.



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Gelson’s adopts Upshop’s AI-powered tech

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Gelson’s Markets has gone all-in on artificial intelligence with plans to deploy Uphop’s total store platform to manage forecasting, ordering, inventory, and production planning, the Austin-based tech company announced Monday. 

Gelson’s, which operates 26 upscale supermarkets and one convenience store, ReCharge by Gelsons, in Southern California, said the partnership ensures that “every location is tuned into local demand dynamics.”

The Austin-based SaaS tech company has served as a leader in AI-powered inventory management with its suite of tools that streamline the process. That includes direct store delivery (DSD) future-proofing, food traceability, and food waste management, among others. 

“In a competitive grocery landscape, scale isn’t everything—intelligence is,” said Ryan Adams, president and CEO of Gelson’s Markets, in a press release. “With Upshop’s embedded platform and AI-driven capabilities, we’re empowering our stores to be hyper-responsive, efficient, and focused on the guest experience. It’s how Gelson’s can compete at the highest level.”

Implementing the new technology puts Gelson’s in league with “a market dominated by national chains,” according to Upshop.

The grocery retailer’s adoption of the platform will kick off with a focus on “eliminating food waste and optimizing fresh food production—especially within foodservice,” with the goals of reducing shrink, streamlining production, and enhancing quality, according to Upshop.

Related:Foxtrot added to Uber Eats app

The premium grocery chain’s announcement appears to build on its recent investment in technology. In January 2024, the grocer announced a partnership with Scottsdale, Ariz.-based Clear Demand, which specializes in so-called intelligent price management and optimization (IPMO). That partnership aims to manage retail pricing strategies for the grocer.
Gelson’s was sold to Tokyo-based Pan Pacific International Holdings (PPIH) from TPG Capital in 2021.

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Join us at Grocery NEXT, September 10-12 at the Westin Chicago Northwest in Itasca, Ill., where industry leaders will explore the future of grocery technology, AI, automation and evolving consumer trends. Register now to be part of this groundbreaking event.





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IT Summit focuses on balancing AI challenges and opportunities — Harvard Gazette

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Exploring the critical role of technology in advancing Harvard’s mission and the potential of generative AI to reshape the academic and operational landscape were the key topics discussed during University’s 12th annual IT Summit. Hosted by the CIO Council, the June 11 event attracted more than 1,000 Harvard IT professionals.

“Technology underpins every aspect of Harvard,” said Klara Jelinkova, vice president and University chief information officer, who opened the event by praising IT staff for their impact across the University.

That sentiment was echoed by keynote speaker Michael D. Smith, the John H. Finley Jr. Professor of Engineering and Applied Sciences and Harvard University Distinguished Service Professor, who described “people, physical spaces, and digital technologies” as three of the core pillars supporting Harvard’s programs. 

In his address, “You, Me, and ChatGPT: Lessons and Predictions,” Smith explored the balance between the challenges and the opportunities of using generative AI tools. He pointed to an “explainability problem” in generative AI tools and how they can produce responses that sound convincing but lack transparent reasoning: “Is this answer correct, or does it just look good?” Smith also highlighted the challenges of user frustration due to bad prompts, “hallucinations,” and the risk of overreliance on AI for critical thinking, given its “eagerness” to answer questions. 

In showcasing innovative coursework from students, Smith highlighted the transformative potential of “tutorbots,” or AI tools trained on course content that can offer students instant, around-the-clock assistance. AI is here to stay, Smith noted, so educators must prepare students for this future by ensuring they become sophisticated, effective users of the technology. 

Asked by Jelinkova how IT staff can help students and faculty, Smith urged the audience to identify early adopters of new technologies to “understand better what it is they are trying to do” and support them through the “pain” of learning a new tool. Understanding these uses and fostering collaboration can accelerate adoption and “eventually propagate to the rest of the institution.” 

The spirit of innovation and IT’s central role at Harvard continued throughout the day’s programming, which was organized into four pillars:  

  • Teaching, Learning, and Research Technology included sessions where instructors shared how they are currently experimenting with generative AI, from the Division of Continuing Education’s “Bot Club,” where instructors collaborate on AI-enhanced pedagogy, to the deployment of custom GPTs and chatbots at Harvard Business School.
  • Innovation and the Future of Services included sessions onAI video experimentation, robotic process automation, ethical implementation of AI, and a showcase of the University’s latest AI Sandbox features. 
  • Infrastructure, Applications, and Operations featured a deep dive on the extraordinary effort to bring the new David Rubenstein Treehouse conference center to life, including testing new systems in a physical “sandbox” environment and deploying thousands of feet of network cabling. 
  • And the Skills, Competencies, and Strategies breakout sessions reflected on the evolving skillsets required by modern IT — from automation design to vendor management — and explored strategies for sustaining high-functioning, collaborative teams, including workforce agility and continuous learning. 

Amid the excitement around innovation, the summit also explored the environmental impact of emerging technologies. In a session focused on Harvard’s leadership in IT sustainability — as part of its broader Sustainability Action Plan — presenters explored how even small individual actions, like crafting more effective prompts, can meaningfully reduce the processing demands of AI systems. As one panelist noted, “Harvard has embraced AI, and with that comes the responsibility to understand and thoughtfully assess its impact.” 



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Tennis players criticize AI technology used by Wimbledon

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Some tennis players are not happy with Wimbledon’s new AI line judges, as reported by The Telegraph. 

This is the first year the prestigious tennis tournament, which is still ongoing, replaced human line judges, who determine if a ball is in or out, with an electronic line calling system (ELC).

Numerous players criticized the AI technology, mostly for making incorrect calls, leading to them losing points. Notably, British tennis star Emma Raducanu called out the technology for missing a ball that her opponent hit out, but instead had to be played as if it were in. On a television replay, the ball indeed looked out, the Telegraph reported. 

Jack Draper, the British No. 1, also said he felt some line calls were wrong, saying he did not think the AI technology was “100 percent accurate.”

Player Ben Shelton had to speed up his match after being told that the new AI line system was about to stop working because of the dimming sunlight. Elsewhere, players said they couldn’t hear the new automated speaker system, with one deaf player saying that without the human hand signals from the line judges, she was unable to tell when she won a point or not. 

The technology also met a blip at a key point during a match this weekend between British player Sonay Kartal and the Russian Anastasia Pavlyuchenkova, where a ball went out, but the technology failed to make the call. The umpire had to step in to stop the rally and told the players to replay the point because the ELC failed to track the point. Wimbledon later apologized, saying it was a “human error,” and that the technology was accidentally shut off during the match. It also adjusted the technology so that, ideally, the mistake could not be repeated.

Debbie Jevans, chair of the All England Club, the organization that hosts Wimbledon, hit back at Raducanu and Draper, saying, “When we did have linesmen, we were constantly asked why we didn’t have electronic line calling because it’s more accurate than the rest of the tour.” 

We’ve reached out to Wimbledon for comment.

This is not the first time the AI technology has come under fire as tennis tournaments continue to either partially or fully adopt automated systems. Alexander Zverev, a German player, called out the same automated line judging technology back in April, posting a picture to Instagram showing where a ball called in was very much out. 

The critiques reveal the friction in completely replacing humans with AI, making the case for why a human-AI balance is perhaps necessary as more organizations adopt such technology. Just recently, the company Klarna said it was looking to hire human workers after previously making a push for automated jobs. 



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