Ted Cruz Wants to Help AI Companies Duck Regulations

Most tech firms like to operate under the adage of “ask forgiveness, not permission,” but they don’t even have to do that when they have lenient overseers like Ted Cruz trying to preemptively tell them to go ahead and get reckless. According to a report from Bloomberg, the Texas Senator plans to introduce legislation that will waive federal regulations for artificial intelligence companies and allow them to test new products without the standard scrutiny or oversight.

The proposed bill, which is still being drafted and has not yet been introduced, would reportedly allow AI firms to apply for a two-year waiver that would protect them from having to comply with any “enforcement, licensing, or authorization” requirements from the federal government. Instead, they’d operate in what Bloomberg calls a “regulatory sandbox” that would be operated by the White House’s science and technology office, which is currently headed by Michael Kratsios, the former managing director and head of strategy for Scale AI. So, you know, don’t expect much in terms of crackdowns.

In addition to the two-year hall pass, companies would reportedly be able to apply for eight more years of freedom. That would be a total of 10 years of unregulated development, which is in line with the previously proposed 10-year ban on state-level regulations that would govern how companies can operate. That proposal, which was initially part of the One Big, Beautiful Bill but eventually got voted down by a 99-1 count, was also brought by Cruz. It’s enough to give you the sense that maybe the Senator really wants to axe those guardrails.

While it’s not clear yet what provisions will make it to the final copy of the bill, Bloomberg reported the expectation is that Cruz will introduce the proposal on Wednesday while Kratsios is testifying before the Senate. If he does, it’ll make good on something he’s been promising AI firms for months. He first floated the idea of a “light touch” approach to AI regulations back in May, and Politico first reported on this expected piece of legislation last month. Whether it passes will likely depend on whether Republicans have remained skeptical enough of the technology to not fully strip away the ability to regulate it, though the fact that they let states retain their rights to pass AI-related laws might make it more likely that they sign on to letting the federal rules get lax.