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<v Speaker 1>Let's say good morning now to ABC's Mike Debusky.

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<v Speaker 2>Morning, Mike, good morning. How are you? And I will

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<v Speaker 2>say I'm with you on the bear. Actually I'm a

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<v Speaker 2>little out on the bear.

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<v Speaker 1>I know, I'm really I'm not happy with it.

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<v Speaker 2>Lost me after three after season three.

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<v Speaker 3>Yeah, season three was I didn't like it at all.

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<v Speaker 3>I loved season one, I loved season two. Season three

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<v Speaker 3>I was like what And then season four there were

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<v Speaker 3>moments of greatness, I think, but then it slid back

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<v Speaker 3>into the we'll talk about them more.

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<v Speaker 2>Yeah, yeah, yeah, all right, Let's.

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<v Speaker 3>Talk about the issue at hand, and that is technology

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<v Speaker 3>that's wrapped into the big beautiful bill. So what are

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<v Speaker 3>some things that are in the bill that could affect us.

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<v Speaker 2>So one of the big tech provisions that was going

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<v Speaker 2>to be in the bill was actually stripped out of

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<v Speaker 2>the Senate Republican spending Bill at the last minute. And

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<v Speaker 2>this was one that got a lot of attention, and

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<v Speaker 2>it's still worth talking about just because it could crop

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<v Speaker 2>up in another form, either as a standalone piece of

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<v Speaker 2>legislation or bundled into a future bill. It was known

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<v Speaker 2>as the AI Moratorium, and this was a provision that

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<v Speaker 2>was written by Marsha Blackburn of Tennessee and Ted Cruz

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<v Speaker 2>of Texas, and it essentially instituted a temporary pause on

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<v Speaker 2>state level AI regulation, meaning if you're a state government,

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<v Speaker 2>you for a set period of time would not have

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<v Speaker 2>been able to pass any legislation with certain carve outs

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<v Speaker 2>related to artificial intelligence. And originally that was going to

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<v Speaker 2>be a ten year pause, then it was a five

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<v Speaker 2>year pause. And the idea here that lawmakers and many

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<v Speaker 2>in the AI industry had was that they wanted to

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<v Speaker 2>prevent this patchwork from emerging across the country that these

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<v Speaker 2>AI companies were going to have to navigate either you know,

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<v Speaker 2>having Google sort of figure out conflicting laws in different

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<v Speaker 2>you know, parts of the country. And more importantly, these

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<v Speaker 2>smaller AI companies that make sort of more tailored services

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<v Speaker 2>to certain industries, whether it be you know, manufacturing or

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<v Speaker 2>medicine or what have you. You know, they don't necessarily

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<v Speaker 2>have the lawyers that Google or Open Ai has to

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<v Speaker 2>sort of figure out all of that sort of thing.

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<v Speaker 2>So the concern there was that this was going to

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<v Speaker 2>disadvantage smaller companies. It was going to hinder the larger

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<v Speaker 2>company's ability to focus on developing super advanced intelligence at

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<v Speaker 2>a moment when we're in an AI race with China

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<v Speaker 2>and we don't want to take our foot off the gas.

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<v Speaker 2>That was the argument in favor of this piece of legislation. However,

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<v Speaker 2>there was a lot of opposition to it. There's a

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<v Speaker 2>lot of pushback both from Democrats and from Republicans. Seventeen

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<v Speaker 2>Republican governors wrote to Majority Leader John Thune House Speaker

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<v Speaker 2>Mike Johnson calling for this AI moratorium to be stripped

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<v Speaker 2>out of the bill. And even in the AI space,

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<v Speaker 2>there was a little bit of pushback, with Dario Amidae,

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<v Speaker 2>who is the CEO of Anthropic, writing that this is

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<v Speaker 2>a blunt instrument that gives us the worst of both

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<v Speaker 2>possible worlds. It stops states from being able to legislate

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<v Speaker 2>quickly on a quickly developing technology, and it does not

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<v Speaker 2>allow for a federal backstop. Right there's no federal AI

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<v Speaker 2>legislation that these states could fall back on.

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<v Speaker 3>Okay, wait, so then my question, Mike, is as it

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<v Speaker 3>stands now since I was stripped out. Yeah, the takeaway

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<v Speaker 3>is that right now AI's on a free for all.

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<v Speaker 2>The takeaway right now actually is that states still have

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<v Speaker 2>the ability to legislate on this and many do.

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<v Speaker 1>You have that patchwork that you were talking.

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<v Speaker 2>About, You still have that patchwork. And interestingly enough, there's

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<v Speaker 2>been some analysis of the more than one thousand state

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<v Speaker 2>level laws governing artificial intelligence in some capacity or another

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<v Speaker 2>that suggests that this idea that it's going to be

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<v Speaker 2>really hard for Google to figure out like all these

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<v Speaker 2>varying sort of state level laws, is maybe a little overblown.

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<v Speaker 2>A lot of these state laws sort of overlap with

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<v Speaker 2>one another. For example, about a dozen states across the

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<v Speaker 2>country have laws that have to do with protecting against

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<v Speaker 2>like political deep fakes and whatnot, so it's actually kind

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<v Speaker 2>of similar in that regard. So it's not, you know,

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<v Speaker 2>necessarily that these guys are going to be thrown to

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<v Speaker 2>the wind, though, you know, I was talking to some

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<v Speaker 2>experts yesterday who also say that this concern that the

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<v Speaker 2>smaller guys in the AI space could be left out

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<v Speaker 2>in the cold here just because they don't have, you know,

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<v Speaker 2>the backing or the money to pay for lawyers to

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<v Speaker 2>figure all of this out. You know, it is a

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<v Speaker 2>real one. So it's going to be interesting to see

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<v Speaker 2>if this crops up in any future legislation Marsha Blackburn,

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<v Speaker 2>as we said, co authored this bill, but she was

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<v Speaker 2>actually the one who reversed her position on it and

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<v Speaker 2>was kind of, you know, in favor of stripping it

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<v Speaker 2>out of the deal. So, you know, she teamed up

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<v Speaker 2>with Ted Cruz. Maybe those two get back together and

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<v Speaker 2>figure something else out. But you know, as of this point,

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<v Speaker 2>it is now up to the states to figure out

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<v Speaker 2>kind of how to regulate AI. We're still waiting on

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<v Speaker 2>the federal government for sort of more broad reaching governance

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<v Speaker 2>of artificial intelligence.

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<v Speaker 3>Okay, and then here's my thought before we move on

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<v Speaker 3>to the Trump's self. One thing is why do they

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<v Speaker 3>need lawyers? Just ask their own AI. Hey, did these

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<v Speaker 3>bills overlap? Do they with each other?

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<v Speaker 1>Just ask your AI buddy.

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<v Speaker 2>Well, that gets at the crucial problem with AI, and

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<v Speaker 2>in fact, why many say that it needs regulation is

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<v Speaker 2>that this hallucinates and it makes mistakes. In fact, in

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<v Speaker 2>the law section of the in the law sector, some

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<v Speaker 2>lawyers have used artificial intelligence to summarize briefs to you know,

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<v Speaker 2>get more information on a case, and they've hallucinated. They've

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<v Speaker 2>made up crimes that didn't happen, accused people of all

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<v Speaker 2>sorts of things, This technology, for as advanced as it

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<v Speaker 2>is and for as much hype as it gets, is

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<v Speaker 2>still fundamentally flawed. Right, It is still imperfect, and it

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<v Speaker 2>still you know, you know, makes mistakes. It always needs

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<v Speaker 2>to be double checked, and that's why there is some

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<v Speaker 2>degree of need for governance. Here.

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<v Speaker 3>Here's my latest example. I just fact checked it because

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<v Speaker 3>I asked about the Dodgers' score this morning, and it's

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<v Speaker 3>said that the Dodgers in the White Sox played on

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<v Speaker 3>Monday night, July first, and I went, you know what,

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<v Speaker 3>there was no Monday night, July first, Tuesday night. Okay,

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<v Speaker 3>we don't really have time to talk about the big

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<v Speaker 3>beautiful mobile service.

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<v Speaker 1>But is it moving along or is it stalled?

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<v Speaker 2>Well, it is changing, I think is maybe the takeaway here.

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<v Speaker 2>Two weeks ago, the Trump Organization announced that they are

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<v Speaker 2>going to be making a smartphone. They called it the

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<v Speaker 2>T one eight thousand and two Goals version, and they

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<v Speaker 2>said it was going to be a six point eight

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<v Speaker 2>in screen, it was going to cost five hundred dollars,

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<v Speaker 2>is going to be an Android device, and it was

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<v Speaker 2>going to be built in the USA. Well, now, the

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<v Speaker 2>website for this phone, no one has touched this phone

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<v Speaker 2>or played around with it at all. The website for

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<v Speaker 2>this phone has changed some of those you know, specific specs.

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<v Speaker 2>They've changed the size of the screen, and they now

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<v Speaker 2>say that it is proudly American, not built in America.

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<v Speaker 2>So it seems to imply that it's not going to

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<v Speaker 2>be built in America. No surprise there. No major smartphones

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<v Speaker 2>are built in America. We don't really have the infrastructure

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<v Speaker 2>to do that at this point without great cost and

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<v Speaker 2>great expenditure, which made many people skeptical of the Trump

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<v Speaker 2>organization being able to do that for a five hundred

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<v Speaker 2>dollars price tag. It seems a lot of that skepticism

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<v Speaker 2>was warranted.

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<v Speaker 3>Wasn't the T one.

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<v Speaker 1>To eight thousand, like the name of the terminators?

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<v Speaker 2>It was the T one thousand if I'm were calling

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<v Speaker 2>from two.

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<v Speaker 1>Okay, Mike Debuski, ABC, thank you so much. Appreciated.

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<v Speaker 2>As always, of course, guys, take care.