Austin News

In an opening statement at a Senate Commerce Committee hearing titled “The Need to Protect Americans’ Privacy and the AI Accelerant,” Ranking Member Ted Cruz (R-Texas) emphasized the potential negative impact of regulatory actions on artificial intelligence (AI) proposed by the Biden administration and various congressional members. Cruz argued that these measures could stifle American innovation and burden entrepreneurs with excessive regulations.

Sen. Cruz highlighted the necessity of addressing AI-related issues with targeted solutions, such as his bipartisan TAKE IT DOWN Act, which aims to combat revenge and AI-generated deepfake pornography. He also advocated for a uniform data privacy standard that balances privacy and innovation, rather than favoring large businesses and trial lawyers at the expense of entrepreneurs.

Cruz stated, "American prosperity depends on entrepreneurs. These are ambitious—and optimistic—men and women who are willing to take risks, pursue their dreams, and try and change the world."

He continued by contrasting historical approaches to regulation in the United States with those in other regions: "The United States has mostly chosen a different path — one where a free enterprise system, governed by the rule of law, allows Americans to freely pursue their ideas, grow their own businesses, and compete without having to obtain permission from all-knowing bureaucrats."

Cruz expressed concern over adopting regulatory models similar to those in Europe: "Do we embrace our proven history —one with entrepreneurial freedom and technological innovation? Or will we adopt the European model — where government technocrats get to second-guess and manage perceived risks with economic activity?"

Referencing historical economic data, he noted that in 1993, at the dawn of the tech age, the economies of the United States and European Union were roughly equal in size. Today, he pointed out that America's economy is nearly 50 percent larger than that of the EU.

"The tech boom happened in America in part because Congress and the Clinton administration deliberately took a hands-off approach to the nascent internet," Cruz said.

Criticizing current proposals from his colleagues and the Biden administration for regulating AI based on "hysterical doomsday prophecies," Cruz warned that such actions would lead to a loss of technological edge over China.

Cruz underscored specific concerns regarding federal regulators' discussions about addressing 'bias,' 'misinformation,' or 'discrimination' in AI systems: "That’s code for ‘speech police.’"

While acknowledging potential nefarious uses of AI technology, he called for appropriate responses: "For example, Senator Klobuchar and I have introduced the bipartisan Take It Down Act... Our bill... would also require Big Tech to follow a notice-and-takedown process so ordinary Americans who are victimized by these disturbing images can get them offline immediately."

Regarding broader data privacy legislation like APRA (American Privacy Rights Act), Cruz stated his preference for Congressional action over federal agency mandates: "I support Congress – not the FTC or any federal agency – setting a nationwide data privacy standard."

However, he criticized APRA's current form for delegating too much power to unelected commissioners at FTC: "Its focus on algorithmic regulations under the guise of civil rights would directly empower DEI ‘speech police’ efforts underway at the Biden White House."

Concluding his remarks, Cruz called for considering state-level models like Texas' approach: “Texas succeeded because it focused on Texans’ privacy — not regulating the entirety of internet.”

“I look forward to today’s discussion,” he concluded.

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