As AI Tools Become Commonplace, so Do Concerns

As AI Tools Become Commonplace, so Do Concerns

Forecast '26: Lawmakers will address the challenges of consumer privacy, the impact of social media on children and the need for broadband infrastructure.

In 2025, at least half the states enacted legislation addressing deepfakes, which use generative AI to create seemingly realistic, but fabricated, images and sounds. (Laurence Dutton/Getty Images)

As technology continues to transform society, expect more challenges to arise from the complex intersection of innovation, regulation and the public interest. Legislators will continue to respond to the rapid momentum of artificial intelligence across multiple sectors, the evolving challenges of consumer privacy, the impact of social media on children and the ongoing efforts to expand broadband infrastructure.

Forecast '26 is a special report from State Legislatures News covering the topics NCSL's policy experts anticipate will occupy state lawmakers' time in 2026 legislative sessions. Read the full report.

Hot Topic: AI Momentum

Artificial intelligence is driving innovation across all sectors of the economy, from health care to transportation and even government services. The rapid deployment of AI-powered tools raises concerns about bias, accuracy and privacy, and all states introduced measures on those issues in 2025. Over the past few years, legislators have enacted legislation addressing government AI use, deepfakes and private sector AI use, including measures on transparency, consumer protections and impact assessments.

The government use of AI is drawing significant legislative attention. States will continue to use inventories and assessments, among other tools, to gauge the impact of AI use in government agencies.

In 2025, at least half the states enacted legislation addressing deepfakes, which use generative AI to create seemingly realistic, but fabricated, images and sounds. New laws focus on election campaigning, nonconsensual intimate images, and simulated child sexual abuse material. States will continue to protect against online impersonation, including AI-generated content.

States legislation aimed at the private sector use of AI ranges from a narrow focus on applications such as chatbots to more comprehensive measures. California required greater transparency and risk-mitigation efforts from developers of large AI models. Texas required specific disclosure of AI use and prohibited developers from creating systems designed to make discriminatory decisions. Both new laws focus on AI innovation as well, with new government coordination in California to provide AI infrastructure for startups and researchers and a regulatory "sandbox" to test AI innovations in Texas.

Lawmakers also have their sights on the use of AI in the workplace and strategies to build an AI workforce. For example, states have enacted legislation to address potential biases in AI technologies used for hiring employees, conducting employee evaluations and other employment decisions. States also have focused on the use of technology by law enforcement: Over the last five years, at least 18 states have considered legislation to regulate law enforcement's use of facial recognition technology.

ACTION: In the 2025 legislative session, all 50 states, Puerto Rico, the Virgin Islands and Washington, D.C., considered AI legislation, and 38 states adopted or enacted about 100 measures. Lawmakers efforts to regulate and invest in AI are expected to continue in 2026.

At the federal level, NCSL's advocacy efforts helped defeat an effort in Congress to pass a 10-year moratorium on state and local AI laws and regulations. NCSL and its allies are poised to continue this work in 2026, as some members of Congress have signaled renewed interest in curtailing or preempting state authority in the AI space.

NCSL Resources:

• AI Policy Toolkit
• Artificial Intelligence Legislation Database
• Deepfakes in Elections and Campaigns

Hot Topic: Protecting Consumer Privacy

Comprehensive consumer privacy legislation generally regulates the collection, use and disclosure of personal information by businesses and provides a set of consumer rights, such as the right to access, correct and delete personal information gathered by businesses. The rise of AI, which uses data to train its large language models, and its use in a growing number of everyday technologies underscores questions about protecting data. States are passing new laws to protect different types of consumer data, such as one in Oregon regarding data collected by motor vehicles and the collection of biometric data through neurotechnology. Legislators were also increasingly focused on online child privacy in 2025.

ACTION: Forty-nine states and Washington, D.C., introduced or considered over 800 consumer privacy bills in 2025, and more than 30 states enacted at least 100 new laws. States continue to develop legislation on comprehensive consumer privacy, children's online privacy, genetic information, data broker regulation, and privacy legislation that involves consumer data collected by commercial entities.

Congress continues to explore the possibility of enacting a bipartisan, comprehensive framework for consumer data privacy, with discussions expected to continue into 2026. A bipartisan group of legislators representing NCSL met with congressional staff to share insights from their state privacy laws, highlighting commonalities across states and emphasizing the importance of preserving state flexibility in any federal approach.

Related: Consumer Data Privacy 2025 Legislation

Hot Topic: Social Media and Children

Research on social media's effect on the well-being of children and youth is mixed. Some studies show that social media use is linked to worsening mental health, while other studies suggest some positive influences. Over the last few years, at least 30 states and Puerto Rico passed over 50 new laws focused on children's online safety. State laws have addressed age verification for social media accounts and the ability to access harmful materials online; parental consent to open new social media accounts; children's privacy; and specific requirements for content moderation and the settings of accounts used by minors. Other strategies include limiting social media and cellphone use in schools.

Action: Over 45 states and Puerto Rico have at least 300 pieces of legislation pending, and at least 20 states passed new laws in 2025. This year, Louisiana, Texas and Utah enacted laws that took a new approach to online age verification by requiring age verification by the application store instead of on the social media platform. In recent years, laws in this area have been challenged in court; states are waiting to determine their constitutionality, potentially spurring new strategies.

In Congress, a bipartisan effort led to the introduction or reintroduction in 2025 of several bills addressing the impact of social media on children's mental health, safety and privacy; none have been enacted. Momentum to enact legislation aimed at better protecting children from potential social media-related harms is expected to continue into 2026.

Related: Social Media and Children 2025 Legislation

Hot Topic: Broadband Deployment

Historic investments at both the state and federal levels have significantly expanded broadband infrastructure in recent years. A key driver of this progress is the Broadband Equity, Access and Deployment Program, also known as BEAD, a $42.45 billion initiative created under the 2021 Infrastructure Investment and Jobs Act to fund high-speed internet deployment in unserved and underserved areas. Administered by the National Telecommunications and Information Administration, BEAD represents the largest federal investment in broadband in U.S. history.

However, recent changes to BEAD, including the cancellation of funding via the Digital Equity Act, have caused uncertainty for states and industry stakeholders. Chief among their concerns are potential disagreements between the NTIA and states over which technologies states can use to deploy broadband services, as different technologies vary in cost, speed and long-term scalability. In addition, it remains unclear whether states will retain access to their nondeployment BEAD funds-the money remaining after states have paid for their broadband infrastructure goals. States have proposed using the money for workforce development, mapping and other broadband-related activities, but it's possible the Treasury Department will attempt to reclaim the funds.

As of late September, 41 states and territories had submitted their final BEAD proposals to NTIA for approval; another 15 had been granted an extension.

States also continue to monitor ever-present broadband topics such as pole attachments, which involve gaining access to utility poles for broadband equipment; network maintenance; and training people with the digital skills necessary to succeed in today's technology-driven economy. Legislation addressing these issues is likely to continue into 2026.

ACTION: In the 2025 legislative session, at least 51 states and territories considered or enacted legislation addressing broadband funding, governance authorities such as state broadband offices and commissions, educational institutions, infrastructure, municipal broadband networks, digital equity, rural and underserved communities, and taxes. For example, Indiana required pole owners and broadband providers to coordinate and streamline the process for attaching broadband equipment to electric distribution poles. Hawaii transferred the state's broadband office to another department and established a revolving fund to support deployment and affordability. Montana will issue bonds to provide broadband service exclusively to unserved and underserved areas or to locations where broadband is available only by satellite technologies. Expect these efforts to continue into 2026.

At the federal level, work will continue on BEAD implementation, and a bipartisan congressional working will discuss modernizing the Universal Service Fund.

NCSL Resources:

• Broadband Legislation Database
• Broadband Policy Toolkit
• BEAD Rewired: What the Changes to the Broadband Program Mean for States
• Wired, Wireless or in Orbit: Broadband Technology Modes Explained