AI Law - International Review of Artificial Intelligence Law
G. Giappichelli Editore

01/08/2024 - AI Governance Faces Uncertainty After Landmark Supreme Court Rulings (USA)

argument: Decisioni/Decisions - Constitutional Law

According to an article by Technical.ly, recent Supreme Court decisions could significantly disrupt the regulatory landscape for artificial intelligence (AI). One of the most impactful rulings is Loper Bright Enterprises v. Raimondo, which overturned the 1984 Chevron deference doctrine. This doctrine allowed courts to defer to the expertise of government agencies when interpreting ambiguous statutes related to their work. With its overturn, judges will now exercise their own independent judgment in such cases. David Vladeck, a Georgetown University Law Center professor, emphasized that the absence of Chevron deference makes little sense due to the complexity of issues that federal agencies handle.

John Heflin, the director of policy at AI governance software company Trustible, noted that this term's cases, including Loper, SEC v. Jarkesy, and Corner Post, Inc. v. Board of Governors of the Federal Reserve System, will make agency rulemaking far more difficult. Legislators often draft laws without detailed guidance, leaving agencies to interpret and implement these laws. The Supreme Court's stance that agency expertise is not a given complicates this process.

Justice Elena Kagan, in her dissenting opinion on the Loper case, warned that ambiguity in AI-related regulations might lead to more judicial intervention. Georgetown law professor Vladeck also expressed concern about the lack of federal rules to address harmful AI applications, such as creating deepfakes.

The ruling in SEC v. Jarkesy, which grants defendants the right to a jury trial in SEC fraud cases, could extend to other agencies like the FTC. Additionally, the court's decision in Corner Post allows challenges to any rule within six years of alleged injury, unsettling the finalization of rulemaking.

Heflin pointed out that these rulings collectively undermine the agency rulemaking process, limit enforcement to agencies, and open the door for prolonged litigation. Vladeck believes it will take years for Congress to restore agencies' authority to combat deceptive practices effectively.

There is some hope, however. The Biden administration's executive order on AI regulation and ongoing discussions between the executive branch and legislators indicate potential future actions. The pace of these developments may depend on the outcome of the upcoming presidential election. If former President Donald Trump returns to office, Vladeck is not optimistic about prioritizing AI regulation.

Despite the uncertainty, both Vladeck and Heflin agree that the complexity and high-risk nature of AI applications necessitate robust regulatory frameworks, though achieving this will be challenging given the current legal landscape.