As generative AI continues to flourish, AI startups are ramping up their lobbying activities at the U.S. federal level. The surge in lobbying efforts comes in the midst of an election year that could significantly influence the future of AI regulation. According to OpenSecrets, a nonprofit organization that tracks lobbying and campaign finance, the number of groups lobbying the federal government on AI-related issues increased from 459 in 2023 to 556 in the first half of 2024.
OpenAI, the company behind ChatGPT, has notably increased its lobbying expenditures, spending $800,000 in the first six months of 2024 compared to $260,000 in all of 2023. The startup has expanded its team of external lobbyists from three consultants to approximately 15 within the same timeframe.
In March, OpenAI brought former NSA director Paul Nakasone onto its board and hired former Republican Sen. Norm Coleman to advocate for research and development issues. Prominent law firms like Akin Gump Strauss Hauer & Feld and DLA Piper have registered lobbyists for OpenAI, highlighting the company’s intensified efforts.
OpenAI has also strengthened its internal policy team, appointing Chan Park, a former senior director of congressional affairs at Microsoft, to lead its U.S. and Canada partnerships. The global affairs division has grown to 35 employees across eight countries, with plans to expand to 50 by the end of the year.
Anthropic’s Strategic Lobbying Investments
OpenAI’s rival Anthropic is on track to spend half a billion dollars on lobbying in the coming months. In 2024, Anthropic has already invested $250,000 in its lobbying team, almost matching its total spending of $280,000 for three lobbyists in 2023.
Anthropic hired former AWS lobbyist Stoney Burke from Aquia Group and Jed Bhuta from Tower 19 in January, adding to its team of external lobbyists. The company also recruited an in-house lobbyist in early March, further expanding its influence in the policy-making arena.
Even smaller AI startups are increasing their lobbying expenditures. Cohere, which specializes in custom generative AI models for enterprise customers, has doubled its lobbying spend from $70,000 last year to $120,000 in the first half of 2024, according to OpenSecrets data.
The heightened lobbying activity coincides with a crucial election year, where presidential nominees have starkly different views on AI regulation. Democratic frontrunner Vice President Kamala Harris aligns with President Joe Biden’s stance that AI should be federally regulated. In contrast, former President and Republican candidate Donald Trump advocates for dismantling existing AI policies and reducing regulation.
A recent report from the U.S. Commerce Department’s National Telecommunications and Information Administration suggests that a potential Harris administration might favor the release of new generative AI models while developing capabilities to monitor associated risks.
Federal and State-Level AI Legislation
Despite the growing need, Congress has yet to pass comprehensive AI legislation. This legislative gap has led state and local governments to propose nearly 400 AI-related laws this year, as reported by the lobbying group TechNet.
OpenAI has actively supported several Senate bills aimed at establishing a federal AI rulemaking body, providing federal scholarships for AI research and development, and creating AI educational resources in colleges and K-12 settings. These initiatives reflect OpenAI’s increasing involvement in shaping AI policies and regulations.
As the November election approaches, AI startups, including OpenAI, face potential antitrust investigations by U.S. regulators. The Federal Trade Commission (FTC) and the Department of Justice are scrutinizing various partnerships and acquisitions within the AI industry. For instance, the FTC is investigating Amazon’s partnership with AI startup Adept, and both the FTC and the Justice Department are examining Microsoft’s acquisition of Inflection staffers. Microsoft’s decision to relinquish its observer seat on OpenAI’s board in July is likely a strategic move to mitigate antitrust concerns, given its significant investment in OpenAI.
AI startups are significantly increasing their lobbying efforts to navigate the evolving regulatory landscape and influence future AI policies. With substantial investments in lobbying, partnerships with prominent law firms, and strategic hires, these companies are positioning themselves to shape the future of AI regulation in the U.S. as the nation heads toward a pivotal election year.
