Virginia “High-Risk” AI Law Vetoed by Governor

Last month I wrote about Virginia HB 2094. A bill that sought to limit algorithmic discrimination and impose new obligations on AI developers and deployers operating in Virginia. Despite clearing the legislature, the Governor of Virginia recently vetoed the law. A Davis Polk memo describes the governor’s reasoning:

“In his veto message, Governor Youngkin noted his commitment to responsible AI governance and his view that the bill ‘risks turning back the clock on Virginia’s economic growth, stifling the AI industry as it is taking off.’ In particular, he stated that the bill’s ‘rigid framework’ did not account for rapid evolution in the AI space and imposed ‘an especially onerous burden on smaller firms and startups that lack large legal compliance departments.’  Moreover, as Governor Youngkin noted, existing laws relating to discriminatory practices, privacy, data use and libel are already in place to protect consumers.”

This veto is unsurprising given Virginia’s divided government, and the memo points out that the Governor’s reasoning mirrors that of a recent federal executive order on AI. Amid the federal deregulatory environment, some state lawmakers may feel it appropriate to keep state approaches in lockstep with federal policy. Potentially turning AI regulation into a partisan issue. However, AI is developing at a rapid pace, and new possibilities for AI implementation are constantly arising. With that comes the need to mitigate potential harms through legislation. While the Virginia bill has been vetoed, it shows some political willingness to regulate AI and gives an idea of how other states may choose to do so moving forward.