Pa. Lawmakers Advance AI Regulations Amidst Congress Moratorium

Artificial intelligence is reshaping everything—from how we work and play to how governments protect us. In Pennsylvania, lawmakers are refusing to wait for Washington to act. Despite a proposed federal moratorium on state AI regulations, Harrisburg is forging ahead with new rules, hearings, and a blueprint for responsible innovation. This is not just a story about technology, but about who gets to decide its future.

Pennsylvania’s Push for AI Regulation: Why Now?

Let’s face it: AI is outpacing the law. Every week, headlines warn of deepfakes, privacy violations, and AI-driven scams. Pennsylvania is no exception. Incidents like the one at Lancaster Country Day School, where students allegedly used AI to generate explicit images of classmates, have put a spotlight on the urgent need for rules[4]. State legislators are under pressure to move quickly—and they are.

In 2023, Pennsylvania passed Act 125, a bipartisan law criminalizing AI-generated child sexual abuse material and intimate deepfakes. That was just the start. Now, lawmakers are expanding their focus to AI-enabled fraud, privacy invasions, and cybersecurity threats, especially for vulnerable groups like seniors[5]. The state’s new Artificial Intelligence Policy, effective March 11, 2025, requires all agencies under the Governor’s jurisdiction to evaluate AI initiatives for risks and unintended consequences before deployment[2].

The Federal Moratorium and State Pushback

Here’s where things get complicated. In May 2025, language added to the federal budget bill—H. Con. Res. 14—sought to bar state governments from regulating AI for a decade[1][5]. Pennsylvania officials, led by Senators Tracy Pennycuick (R-24) and Nick Miller (D-14), immediately pushed back. They sent a letter to the state’s congressional delegation, arguing that states must retain the flexibility to act as new risks and opportunities emerge[5].

“For the United States to remain the global leader in AI, states must retain the flexibility to act swiftly as new opportunities and risks emerge,” the letter reads[5]. The senators warned that a decade-long federal preemption would hobble essential work to protect consumers, safeguard critical infrastructure, and foster innovation. Pennsylvania, they say, is poised to become a national model for responsible AI collaboration and development—especially with its growing “AI ecosystem” centered in Pittsburgh[5].

Inside Pennsylvania’s AI Regulatory Framework

Pennsylvania’s approach is both ambitious and pragmatic. The new Artificial Intelligence Policy lays out clear guidelines for how AI should be used across state agencies[2]. Before launching any AI initiative, agencies must evaluate the level of decision-making authority given to AI solutions. Material decisions—those with programmatic or financial consequences—must be scrutinized to avoid unintended outcomes[2].

Third-party vendors, contractors, and suppliers are also subject to these rules. The policy is scheduled for review in March 2026, ensuring it remains responsive to rapid technological change[2]. This is a living document, not a static set of rules.

Meanwhile, the state House has created a new Communications & Technology Committee, which will review most AI-related proposals[4]. Lawmakers have scheduled a series of policy hearings across Pennsylvania this spring and summer, inviting testimony from AI leaders and experts. In the fall, the General Assembly’s research arm is expected to publish a report with recommendations for future AI policy[4].

Real-World Applications and Challenges

Pennsylvania’s regulatory push is not just theoretical. The state is home to world-class universities, research institutes, and tech companies—especially in Pittsburgh, where Carnegie Mellon University and a vibrant startup scene are driving AI innovation. The goal is to create an “AI ecosystem” that balances growth with responsibility[5].

But challenges remain. AI misuse is not limited to schools or social media. Fraudsters are using AI to impersonate voices, create fake documents, and scam vulnerable populations. Privacy concerns are escalating as AI tools become more sophisticated. And there’s the ever-present risk of cyberattacks enabled by AI.

Lawmakers are keenly aware of these dangers. Senator Pennycuick, who chairs the state Senate’s Communications and Technology Committee, has been a vocal advocate for stricter regulations. She wants the Legislature to classify any deepfake that falsely or deceptively portrays another person as forgery—a move that could set a national precedent[4].

The National Context: How Pennsylvania Compares

Pennsylvania is not alone in grappling with AI regulation. Across the country, state legislatures are introducing bills to address AI issues. According to the National Conference of State Legislatures, dozens of AI-related bills have been introduced in 2025 alone[3]. Topics range from data privacy and deepfake bans to oversight of AI in hiring and healthcare.

Here’s a quick comparison of key approaches:

Pennsylvania stands out for its bipartisan approach and its focus on both innovation and protection. The state is also unique in its commitment to building a collaborative AI ecosystem, rather than relying solely on regulation.

Voices from the Front Lines

Tracy Pennycuick, a Montgomery County Republican, has become a central figure in Pennsylvania’s AI debate. “Everyone wants to protect the consumer from the bad actors, but let industry and government just exploit AI so that we can have the most efficient, cost-effective government and business possible,” she said recently[4]. That’s a tough balancing act, but one that Pennsylvania seems determined to get right.

Experts from academia and industry are also weighing in. At policy hearings, they’ve highlighted the need for clear rules, robust oversight, and ongoing education. “AI is a tool, not a solution,” one expert noted. “We need to use it wisely.”

The Road Ahead: What’s Next for AI Regulation in Pennsylvania?

Looking ahead, Pennsylvania’s AI journey is just beginning. The fall 2025 report from the General Assembly’s research arm will likely shape the next wave of legislation. Lawmakers are also expected to introduce new bills targeting AI-enabled fraud, privacy, and cybersecurity.

The state’s growing AI ecosystem in Pittsburgh is a bright spot. With strong partnerships between universities, research institutes, and tech companies, Pennsylvania is well-positioned to lead the nation in responsible AI development[5]. But the stakes are high. If the federal moratorium on state AI regulation takes effect, it could slow progress and leave consumers vulnerable.

Conclusion

Pennsylvania’s lawmakers are not waiting for Washington to act. They’re moving ahead with new regulations, hearings, and a vision for responsible AI innovation. From banning deepfakes to building a collaborative AI ecosystem, the state is setting a national example. The debate over federal preemption is just one chapter in a much larger story—one about who gets to shape the future of technology.

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