October 28, 2025 6 min read

AI policies and approaches across the states

AI has existed for decades, but the rise of Generative AI tools like ChatGPT in late 2022 made its opportunities and challenges far more tangible for Missouri’s businesses and workers.

Use of GenAI tools and software is growing faster than any new technology ever introduced. ChatGPT alone reports 500 million users each week and over 2.5 billion queries per day. In Missouri, companies’ AI use has more than tripled since the U.S. Census Bureau began surveying businesses in September 2023. In mid-July, 10.5% of Missouri businesses reported using AI, exceeding the 9.3% rate nationwide.

Today, almost every news publication and business blog has a “hot take” on what AI means for the future of jobs. While we’ve yet to see major changes in hiring or industry disruptions in Missouri, the general consensus is that AI tools have begun to change hiring practices and job requirements for certain occupations, and AI will significantly impact certain industries within the next three to five years.

As the rate of AI use increases exponentially, it is important to understand the Federal

policy landscape and consider how various states are approaching the AI-related

opportunities and potential impacts of this game-changing technology.

Federal Perspective: Support Innovation and Discourage Burdensome Regulation

Today, the U.S. is leading the global race to develop AI tools and software. AI advocates argue that to maintain this position, the U.S. must avoid a patchwork of state-by-state regulations that could hinder the pace of AI development. 

On July 23, 2025, the White House released a report entitled “America’s AI Action Plan” and called it a “national security imperative” for the U.S. to achieve and maintain AI

technological dominance. The report makes recommendations organized around three pillars:

1. Accelerate AI Innovation. This pillar includes 15 recommendations, including

discouraging states from implementing “burdensome AI regulations”, preparing

American workers to utilize AI tools and accelerating the adoption of AI by the Federal government.

2. Build American AI Infrastructure. This pillar calls for increasing the pace of

development of data centers, semiconductor manufacturing and new energy

projects.

3. Lead in International AI Diplomacy and Security. The final pillar includes

recommendations focused on deploying U.S. AI technology to allies around the world and mitigating the impact of bad actors.

Several recommendations in “America’s AI Action Plan” should lead to opportunities for

Missouri. Specifically, a recommendation to fund AI workforce training for incumbent and displaced workers, as well as the focus on growing next-generation manufacturing, align with the work done over the past decade to strengthen Missouri’s technology sector.

Perspective from the States: Lots of Activity, but No Clear Consensus

Because AI tools are being deployed so rapidly, it’s not surprising that states are all over the map in how they’re approaching AI. Some have approached it primarily as a tool for helping state government operate more efficiently, while others have focused on limiting the risks that could result from unauthorized or inappropriate use of data and machine-based decision-making.

Some combination of these approaches can help mitigate risks and disruptions while also capitalizing on AI’s opportunities.

• Using AI to Provide State Government Services

Some states have focused their efforts on ways to implement AI tools across state

government to create efficiencies and savings. Governors are establishing AI task

forces and state legislatures are passing bills to establish an AI governing body. Their focus is usually on defining policies for appropriate use of AI as it’s deployed at the state level.

During COVID-19, many states introduced automated services that relied on AI technology to help citizens access pandemic-related resources and information. More recently, use of automated chatbots is expanding to help citizens to apply for state services and programs. States are also beginning to use AI tools to identify trends and forecast looming issues, such as highway and bridge deterioration. 

• State Efforts to Regulate AI

Over 1,000 AI-related bills were introduced across all 50 states during the past year, but

only a limited number have been enacted into law.

Several state legislatures have considered comprehensive, multi-sector AI bills that would regulate the use of AI by businesses. These bills sometimes include requirements that mandate the developer or deployer disclose when AI tools are in use. Others require humans to review an AI-generated recommendation before certain types of “consequential decisions” can be finalized. To date, only Colorado has passed a comprehensive AI law. 

Because these comprehensive bills have proven difficult to pass and implement, several states have passed much more targeted legislation focused on specific issues. For example, many states are passing legislation protecting the digital use of an individual’s image or likeness. Other targeted bills focus on clarifying ownership of content created by generative AI tools. In 2025, New York enacted a law that requires AI companion software providers to monitor user statements for suicidal tendencies and to remind users that they are interacting with AI technology and not a human.

• AI-related Workforce Training

AI tools will impact specific categories of jobs differently. Some jobs may be eliminated, while other jobs may change considerably if AI tools can augment the productivity of an employee. Other jobs won’t be impacted much by AI.

From a workforce perspective, states are beginning to deploy workforce training resources, but for the most part, the availability of AI training resources is very uneven.

Because training needs vary by job and industry, many states are mapping regional demand and available resources to better plan for workforce success. The Virginia Chamber Foundation recently commissioned an AI Landscape Assessment to help quantify the training demand across the state based on the occupation and industry mix in each region.

The need for AI-related workforce training extends far beyond training for job seekers or displaced workers. Incumbent workers need to be AI literate to remain competitive and maximize productivity. Michigan’s “AI and the Workforce Plan” calls for a focus on upskilling workers to help them succeed in their current role or to give them the knowledge and skills to find a better next job.

The pace of AI deployment is driving the need to identify new training resources and for existing training organizations to be more responsive. Many of the emerging AI-related skills needs won’t be met by traditional 4-year and 2-year degree programs. Industry trade associations in fields such as tax, accounting and law have begun offering AI literacy and AI ethics training as part of their continuing education resources for members.

• Efforts to Grow and Attract AI-related Businesses

States with a strong foundation of tech firms and skills have the opportunity to grow AI-related businesses. To be successful, available and affordable power, data transmission lines and tech workforce training programs are essential.

Additionally, some states have begun to help existing businesses utilize and deploy AI tools more effectively. Research indicates that businesses thoughtfully investing in AI and redesigning business processes are seeing a greater return on those investments than firms not deploying AI or doing so in a decentralized manner. West Virginia recently passed legislation establishing a statewide AI task force and charged it with “identify[ing] economic opportunities related to AI that the state may support or promote.”

Conclusion

The idea that states are laboratories is proving to be true as the pace of AI deployment continues to accelerate. There is currently no established roadmap among the states for how best to build on its opportunities and mitigate its impacts.

Missouri’s focused efforts over the past decade to grow the technology sector and technology jobs positions the state well to take a proactive approach to AI. Through training and technical assistance for workers, a measured and targeted approach to any legislation, and further development of technology-related infrastructure, Missouri’s industries should significantly benefit from the deployment of AI tools during the next decade and beyond.


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