What happened
Rep. Jodey Arrington, R‑Lubbock, told a panel at the Texas Tribune Festival on Sept. 26, 2026 that the United States should err on the side of innovation when shaping AI policy. He warned that excessive regulation could undermine U.S. competitiveness against China and jeopardize health‑ and safety‑related AI advances. Panelists Chris Hyams, former Indeed CEO, and Sherri Greenberg, assistant dean at the LBJ School of Public Affairs, pushed back, emphasizing the need for clear, risk‑based regulation and global cooperation.
During a panel titled “States take the lead on regulating AI as federal action lags,” Rep. Jodey Arrington argued that the United States should adopt an "innovation‑first" posture in AI regulation. He said, "Erring on the side of innovation and winning the race is the right initial posture," and warned that a "zero risk" approach would cause the U.S. to lose the global competition.
Chris Hyams countered that the real question is not whether to regulate AI, but how. He described Arrington’s China‑beating narrative as a false premise, noting that China’s AI advances often rely on U.S. models and that the U.S. retains a advantage. Hyams warned that a lack of clear regulation stifles companies and that voters increasingly favor stronger protections.
Sherri Greenberg added that the United States must protect its residents while working globally, calling for coordinated international governance rather than unilateral action. She emphasized the need for a balanced approach that safeguards public safety without hampering innovation.
The panel also featured remarks from Jason Tyszko of the U.S. Chamber of Commerce Foundation, who highlighted a disconnect between employer expectations for AI competence and academic treatment of AI as a "boogeyman". He urged colleges to demystify AI and integrate practical training.
Source details: newsfromthestates.com ↗
Why it matters
The remarks highlight a growing partisan divide in Washington over how to balance AI innovation with safety safeguards. Arrington’s stance reflects a broader push by some lawmakers to avoid regulations that could slow U.S. AI development, especially as China tightens its own AI rules while still relying on U.S. models. The debate influences upcoming federal AI legislation, shapes industry expectations, and affects how states may craft their own AI rules. Voter sentiment for stronger consumer protections adds pressure for a nuanced approach that protects residents without stifling research and commercial deployment.
Arrington’s comments illustrate a faction in Congress that prioritizes maintaining U.S. leadership in AI over immediate regulatory safeguards. This perspective could shape the language of forthcoming AI bills, potentially limiting the scope of consumer‑protection provisions.
The debate occurs amid heightened geopolitical tension with China, where both nations are racing to dominate AI capabilities. Policy decisions made now will affect the U.S. ability to attract talent, secure investment, and set global standards for AI ethics and safety.
Public opinion data cited by panelists suggests growing voter demand for stronger AI protections, creating a political balancing act for lawmakers. How Congress reconciles these competing pressures will influence the regulatory environment for AI startups, large tech firms, and downstream industries such as healthcare and finance.
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What to watch next
Watch for any legislative proposals introduced in the 118th Congress that echo Arrington’s innovation‑first language, as well as responses from consumer‑advocacy groups and tech firms. Monitor the Senate’s AI oversight hearings for bipartisan compromise and the administration’s AI executive order updates. State‑level AI bills, especially in Texas, may also reflect the festival’s discussion points.
Legislative activity: Introduction of bills that echo an "innovation‑first" stance, possibly limiting the authority of the Federal Trade Commission or the National Institute of Standards and Technology to impose pre‑emptive AI rules.
Executive actions: Updates to the White House’s AI executive order, especially any revisions that address the balance between innovation and risk management.
State initiatives: Texas may propose its own AI regulatory framework, serving as a model for other states and testing the feasibility of a more permissive approach.
Industry response: Tech companies may lobby for or against stricter regulations, and their public statements could signal how the market anticipates policy shifts.