State lawmakers introduced over 160 AI-related bills in 2023, though most failed to advance past committee stage. Legislation focused on six key areas: facial recognition technology, bias protections, deepfakes, social media regulation, government AI use, and study groups. Montana prohibited continuous facial surveillance by law enforcement, while Minnesota and Illinois passed laws addressing nonconsensual deepfake sexual content. Connecticut and Texas established AI inventories for state agencies.

State lawmakers are grappling with how to define artificial intelligence for regulatory purposes, with no universal definition yet established. Rhode Island's HB 6285 defines AI as technology simulating human intelligence, while Michigan's HB 5143 describes it as machine-based prediction systems. New York's AB 8129 avoids the term entirely, instead defining "automated systems." Governor Hochul recently signed legislation addressing deepfakes without defining AI directly.

State policymakers are in the education phase of AI regulation, with eight states creating dedicated study groups and 11 states assigning standing committees or agencies to examine the technology ahead of 2024 legislative sessions. New Mexico lawmakers heard testimony emphasizing transparency and disclosure requirements, while California AB 331 exemplifies early legislation mandating impact assessments and allowing private lawsuits for algorithmic discrimination.