AI lobbying at the federal level in the U.S. is escalating amid a burgeoning generative AI landscape and an impactful election year that could shape future AI regulations. Recent data from OpenSecrets, a nonprofit organization that monitors campaign financing and lobbying activities, reveals a rise in the number of groups lobbying the federal government on AI-related issues—from 459 in 2023 to 556 in the first half of 2024 (January to July). In tandem, leading AI startups have significantly increased their own lobbying efforts.
OpenAI, the creator of ChatGPT, has markedly boosted its lobbying budget, spending $800,000 in the first six months of 2024 compared to $260,000 for the entire year of 2023. The company's team of external lobbyists has expanded from three consultants last year to approximately 15 in the first half of this year. Notably, in March, shortly before appointing former NSA director Paul Nakasone to its board, OpenAI enlisted former Republican Senator Norm Coleman to promote its research and development interests. Additionally, recognized law firms like Akin Gump Strauss Hauer & Feld and DLA Piper are now representing OpenAI's lobbying efforts, as indicated by OpenSecrets data.
OpenAI is also strengthening its internal policy capabilities, having hired Chan Park, the former senior director of congressional affairs at Microsoft, to lead U.S. and Canada partnerships last November. According to the Financial Times, OpenAI's global affairs team has grown more than fourfold over the past year, expanding to 35 employees across eight countries, with plans to increase to 50 by year-end.
In a similar vein, OpenAI's competitor Anthropic is projected to allocate $500,000 to lobbying in the upcoming months. In 2024 alone, Anthropic has already invested $250,000 in its team of five lobbyists, almost matching its total expenditure for three lobbyists in 2023, which was $280,000. The company has engaged two external lobbying firms since January, hiring former AWS lobbyist Stoney Burke of Aquia Group and Jed Bhuta of Tower 19, while also bringing an in-house lobbyist on board in early March.
Even smaller AI firms are dedicating substantial resources to lobbying efforts. In the first half of this year, Cohere, which spent $70,000 on lobbying last year, raised its expenditure to $120,000, according to OpenSecrets data. Cohere focuses primarily on developing custom generative AI models for enterprise clients, a more specialized niche compared to OpenAI or Anthropic.
The surge in lobbying investment is no coincidence. With the 2024 elections approaching, key presidential candidates have articulated sharply contrasting views on AI regulation. Democratic frontrunner Vice President Kamala Harris aligns with President Joe Biden in supporting some level of federal oversight for AI, while former President Donald Trump has proposed dismantling current White House AI policies and promoting deregulation.
This week, the U.S. Commerce Department released a report signaling a potential direction of a Harris Administration. The report from the National Telecommunications and Information Administration advocates for the rollout of new generative AI models, particularly “open-weight” models like Meta’s Llama 3.1, while calling for the establishment of “new capabilities” to monitor associated risks.
Congress has yet to pass comprehensive AI legislation, falling short even of an EU-equivalent AI Act. This legislative gap has prompted a surge in state and local governments working to establish their own AI regulations, with nearly 400 state-level AI laws proposed this year, as reported by the lobbying group TechNet.
OpenAI has increasingly voiced its preferences regarding AI regulations, recently backing Senate bills aimed at creating a federal AI regulatory body, providing scholarships for AI research and development, and introducing AI educational resources in colleges and K-12 schools.
As the nation gears up for the upcoming November election, OpenAI and other AI firms find themselves facing the prospect of antitrust scrutiny from U.S. regulators, including the Department of Justice and the Federal Trade Commission (FTC). CNBC has reported that the FTC is seeking more information about Amazon’s recent collaboration with AI startup Adept, while both the Justice Department and FTC are investigating Microsoft's recent hire of Inflection staff. Notably, Microsoft relinquished its observer seat on OpenAI's board in July, likely a strategic decision aimed at appeasing U.S. antitrust regulators, given its significant investment in the company.
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