With states introducing more than 1,000 AI-related bills this year alone, a fundamental question has taken center stage: what are the roles of the federal government and states in regulating AI?

In this episode of the a16z AI Policy Brief, Kevin Frazier, AI Innovation and Law Fellow at the University of Texas School of Law joins Jai Ramaswamy, chief legal and policy officer and Matt Perault, head of AI policy at a16z. Together, they unpack how the Constitution divides power between the federal and state governments, what doctrines like the Commerce Clause mean for modern AI governance, and why this balance of power could shape America’s competitiveness in AI for decades to come.

The conversation spans the founding era to the AI frontier–covering constitutional history, current state AI bills, impacts on Little Tech and entrepreneurs, and geopolitical stakes.

If you’ve ever found yourself in an animated dinner-party debate about the Articles of Confederation, this one’s for you.

Topics Covered:

00:00: Why the question of who regulates AI matters as much as how we regulate it

01:10: 1,100+ state AI bills and why lawmakers are rushing to act

04:05: State and federal authority in governing AI

06:35: The limits of state authority

09:27: The historical roots of federal power and the Commerce Clause

18:10: Preemption, the dormant Commerce Clause, and the implications of a patchwork of state AI laws

25:20: Extraterritoriality and how one state’s rules can affect the entire country

33:07: Where the founders got it right

37:12: How thoughtful AI policy can lower costs and improve everyday life

47:42: The global stakes: what fragmentation at home means for US competitiveness

Resources:

Follow Kevin Frazier: https://x.com/KevinTFrazier

Follow Matt Perault: https://x.com/MattPerault

Follow Jai Ramaswamy: https://www.linkedin.com/in/jai-ramaswamy-85a77675

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