Far from creating chaos, recent AI laws in states like California and New York are functioning as intended policy laboratories. By experimenting with concepts like independent testing and risk-based scoping, they are reducing uncertainty and creating a foundation for a more informed and effective federal AI framework.

The absence of a comprehensive federal AI law has spurred states like California and Colorado to experiment with unique regulatory approaches. This state-level action, while creating a "patchwork," allows for testing different governance models to see what works best before potential federal adoption.

Top-down mandates from authorities have a history of being flawed, from the food pyramid to the FDA's stance on opioids. True progress emerges not from command-and-control edicts but from a decentralized system that allows for thousands of experiments. Protecting the freedom for most to fail is what allows a few breakthrough ideas to succeed and benefit everyone.

Despite the risk of a fragmented legal landscape, the slow pace of federal AI legislation makes state-level action essential. States are acting as "laboratories of democracy," pioneering regulatory approaches that can later inform a much-needed national framework.

Bradley Tusk, known for his work with Uber, advises startups to focus their regulatory efforts on state and local governments. He argues that achieving federal-level change is akin to a miracle. In contrast, states offer 50 different opportunities to pass favorable legislation, establish precedent, and build momentum for broader change.

Visible problems like homelessness and crime in California are used by figures like Donald Trump to discredit progressive values nationwide. To defend democracy, California must demonstrate that its values can produce a functioning society, otherwise it is actively aiding the authoritarian cause.

Bill Gurley suggests America's federalist system should be leveraged as a policy laboratory. When states like Texas find effective solutions for housing affordability, shining a bright light on that success creates competitive pressure for other states to adopt similar proven strategies, rather than continuing with failed approaches.

Because federal reform is so difficult, states provide crucial testing grounds for new ideas like civil service reform. Successful state-level experiments create proven models and competitive pressure, demonstrating what's possible and encouraging adoption by other states and the federal government.

Rather than setting a low standard, passing AI safety laws in states like California creates a strong baseline. This gives advocates leverage to demand an even stronger federal framework, as anything weaker would be a non-starter for stakeholders who oppose federal preemption.