AI Lobbying Spend Surges in 2024 | Regulatory Uncertainty

Increased Lobbying Efforts Surrounding AI Regulation

Last year witnessed a substantial surge in corporate lobbying concerning artificial intelligence issues at the U.S. federal level, particularly as regulatory ambiguities persisted.

Lobbying Expenditure Growth

Data gathered by OpenSecrets reveals that 648 companies engaged in AI lobbying during 2024, a significant increase from the 458 companies that did so in 2023. This represents a year-over-year growth of 141%.

Support for Key Legislation

Several prominent companies, including Microsoft, actively supported legislative proposals like the CREATE AI Act. This act aims to facilitate the benchmarking of AI systems originating from the United States.

OpenAI, meanwhile, focused its efforts on the Advancement and Reliability Act, advocating for the establishment of a dedicated governmental center specifically for AI research.

Increased Investment by AI Labs

The data indicates that the majority of AI-focused companies – those primarily dedicated to the commercialization of AI technologies – increased their financial support for legislative initiatives in 2024 compared to the previous year.

Significant Spending Increases

OpenAI notably increased its lobbying expenditures to $1.76 million in 2024, a considerable jump from the $260,000 spent in 2023.

Anthropic, a close competitor to OpenAI, more than doubled its lobbying investment, rising from $280,000 in 2023 to $720,000 last year.

Cohere, an enterprise-focused startup, also boosted its spending, reaching $230,000 in 2024, up from $70,000 in 2022.

Strategic Hiring for Policy Outreach

Both OpenAI and Anthropic made strategic hires to enhance their engagement with policymakers. Anthropic appointed Rachel Appleton, a former Department of Justice official, as its first in-house lobbyist.

OpenAI recruited Chris Lehane, a seasoned political strategist, to serve as its new VP of Policy.

Combined Lobbying Costs

Collectively, OpenAI, Anthropic, and Cohere allocated $2.71 million to their federal lobbying efforts in 2024. While this figure is relatively small compared to the $61.5 million spent by the broader tech industry, it is more than four times the $610,000 these three AI labs invested in lobbying during 2023.

Requests for Comment

TechCrunch reached out to OpenAI, Anthropic, and Cohere for statements, but had not received a response at the time of publication.

A Year of Tumultuous Policymaking

Legislative Activity

The past year was marked by significant activity in domestic AI policymaking. During the first six months alone, members of Congress considered over 90 bills related to AI, as reported by the Brennan Center.

Furthermore, more than 700 laws were proposed at the state level.

State-Level Initiatives

Despite limited progress at the federal level, several states took proactive steps. Tennessee became the first state to enact legislation protecting voice actors from unauthorized AI cloning.

Colorado adopted a risk-based framework for AI policy, categorizing regulations based on the potential risks associated with different AI applications.

California Governor Gavin Newsom signed numerous bills focused on AI safety, some of which mandate that AI companies disclose details regarding their training data.

Lack of Comprehensive Regulation

However, no state has yet implemented AI regulations as comprehensive as the EU’s AI Act.

Vetoes and Potential Roadblocks

Governor Newsom vetoed SB 1047, a bill that would have imposed extensive safety and transparency requirements on AI developers, following intense opposition from industry groups.

Similarly, Texas’ TRAIGA bill, which is even more expansive in scope, may face a similar fate as it progresses through the state legislature.

Federal Outlook and Future Regulation

Uncertainty Regarding Federal Progress

It remains unclear whether the federal government will achieve greater progress on AI legislation this year compared to last, or if there is substantial support for formalizing regulations into law.

Trump Administration's Stance

President Donald Trump has indicated his intention to reduce regulations within the industry, aiming to remove perceived obstacles to U.S. leadership in AI.

Reversal of Biden-Era Policies

Upon taking office, Trump revoked an executive order issued by former President Joe Biden that sought to mitigate potential risks posed by AI to consumers, workers, and national security.

He subsequently signed an executive order directing federal agencies to suspend certain Biden-era AI policies and programs, potentially including export controls on AI models.

Calls for Regulation and Support

In November, Anthropic advocated for “targeted” federal AI regulation within the next 18 months, cautioning that the opportunity for “proactive risk prevention is closing rapidly.”

OpenAI, in a recent policy document, urged the U.S. government to take more decisive action on AI and to invest in infrastructure supporting the technology’s development.