The rapid advancement of artificial intelligence (AI) is set to drive the next major technological revolution, according to remarks delivered before the Congressional Institute on August 5, 2025. The discussion highlighted how AI, powered by new computational and data science capabilities, is expected to impact all sectors of the economy.
Reflecting on the history of technology policy, it was noted that three decades ago, both the United States and Europe were contenders in digital innovation. Today, American companies dominate: eighteen of the world’s 25 largest digital firms are based in the U.S., which also accounts for 75 percent of global unicorns by value. In contrast, Europe holds just three percent. Seven out of eight trillion-dollar companies globally are American and most operate in digital technology; none are European. In 2022 alone, America’s digital economy generated over $4 trillion—10 percent of GDP—and supported nearly nine million jobs.
These outcomes were attributed to policy decisions made in the 1990s that prioritized “permissionless innovation” over preemptive regulation. “America embraced a pro-innovation, pro-investment vision for digital technology. Freedom to innovate or ‘permissionless innovation’ was our policy lodestar, and we rejected Europe’s technocratic, top-down regulatory approach,” stated the speaker.
Concerns were raised about current legislative trends regarding AI regulation. Over a thousand AI-related bills have been introduced across various jurisdictions in early 2025 alone. This growing body of proposed laws covers topics from model-level rules to sector-specific regulations for industries like healthcare and finance. The proliferation of overlapping requirements could increase compliance burdens for innovators and particularly affect start-ups and open source platforms.
At the federal level, recent changes include an “AI Action Plan” from the Trump administration that emphasizes growth and experimentation over precautionary restrictions. However, successful implementation will require congressional backing to prevent restrictive state laws from dominating national policy. “Without a national framework, a handful of states will effectively set AI policy for the entire country,” warned the speaker.
It was emphasized that existing federal agencies already regulate many aspects of AI within their domains through consumer protection and sector-specific rules; further regulation could risk stifling progress rather than managing risk efficiently.
The remarks concluded with recommendations for policymakers: support open source AI development globally; maintain competitive energy markets; attract international talent; ensure balanced copyright and privacy standards; and protect freedom of speech in an algorithm-driven society.
“This is a technology race we cannot afford to lose. America’s great advantage has always been its innovation culture—our willingness to let entrepreneurs try, fail, and try again without first asking permission from a regulator,” said the speaker.
“The AI policy path forward for America is clear: double down on the freedom to innovate. The alternative is to let others—perhaps authoritarian rivals—write the script for the future.”
Images courtesy of Congressional Institute
