AI Lobby Readies Major Ad Blitz to Push for Federal Regulation—and Undercut State Efforts

The artificial intelligence industry is gearing up for a political power play. Flush with record funding and influence, AI companies are pooling millions into Build American AI, a new nonprofit advocacy group that will launch an eight-figure advertising campaign to steer public opinion—and lawmakers—toward federal regulation of AI.

The Rise of a Shadow Lobby

Build American AI is an offshoot of Leading the Future, a well-funded pro-AI super PAC that plans to spend tens of millions on the 2026 midterms. But unlike its parent organization, the new group will operate as a dark-money nonprofit, shielding its donors from public view. Its mission is clear: promote AI-friendly legislation in Congress while blunting state-level efforts to craft independent AI rules.

For industry leaders, it’s a fight over who gets to write the playbook. California, Texas, and other states have already drafted their own AI bills, sparking fears of a fragmented regulatory landscape. “We will aggressively highlight the opportunities AI creates for workers and communities, and we will expose and challenge the misinformation being spread by ideological groups trying to undermine the nation's ability to lead,” said Leading the Future co-heads Zac Moffat and Josh Vlasto.

A Regulatory Patchwork Nightmare

Tech executives have long argued that AI is too global, too interconnected, to be governed by 50 different sets of state laws. Kevin Kirkwood, Chief Information Security Officer at Exabeam, said that while good-faith regulation is needed, the state-by-state approach risks sabotaging innovation before it starts.

“When individual states create their own AI regulations, they essentially splinter a technology that is inherently borderless,” Kirkwood said. “AI doesn’t care if it’s in California or Texas, it just runs. But when each state insists on having its own rules, developers are forced to navigate a legal minefield of conflicting compliance checklists. This doesn’t make AI safer; it just makes it harder to build, test, and deploy. Imagine if every state had its own Wi-Fi frequency or electric plug. That’s not innovation, it’s bureaucratic cosplay.”

The consequences, he warned, go beyond red tape.

“This fragmented approach also punishes smaller companies. Big tech giants have the money and lawyers to comply with 50 flavors of red tape. Startups? Not so much. State-by-state AI regulation turns what should be a public safety and ethical issue into a survival test. The result is that the only people who can afford to follow the rules are the ones rich enough to ignore them.”

Politics Meets Policy

The campaign’s emergence signals that AI companies are taking a page from Big Tech’s political playbook—deploying well-funded messaging operations to shape how the public and policymakers perceive AI oversight. While the group hasn’t revealed which states it will target, insiders expect California to be high on the list, given its recent wave of AI bills focused on transparency, safety testing, and content labeling.

Critics warn that such campaigns could frame legitimate safety concerns as anti-innovation fearmongering. Supporters, however, argue that without federal leadership, the U.S. risks regulatory chaos that could stall AI’s economic promise and drive development overseas.

Kirkwood summed up the industry’s unease bluntly:

“Let’s not pretend state legislatures are bastions of AI expertise. You’ve got lawmakers who still say ‘the Facebook’ writing rules for neural networks. AI regulation requires deep technical understanding and international coordination, not performative policy stunts designed to pad someone’s re-election campaign. If we want AI that’s ethical, safe, and actually useful, we need a unified, federal approach, not a patchwork of digital fiefdoms.”

As Build American AI ramps up its media push, the next battle in the nation’s AI future won’t be fought in code—but in Congress, and on the airwaves.