Amazon Security Chief Warns AI Regulation May Hinder US Innovation

Amazon.com Inc.’s Chief Security Officer, Steve Schmidt, has expressed concerns over government regulation of artificial intelligence, joining a growing number of tech executives who share similar apprehensions. Schmidt warns that increased oversight could hinder innovation and weaken the US’s competitive edge against China.

In an interview, Schmidt cautioned against government overreach in the rapidly evolving AI sector, stating that regulation tends to retard progress. He advocated for an industry-led approach to defining appropriate standards, primarily guided by customer needs and demands. This perspective aligns with the views of other tech leaders who have recently voiced their concerns about government intervention in AI development.

Schmidt’s remarks resonate with those made by executives from Microsoft, OpenAI, AMD, and CoreWeave during a congressional hearing last month. These tech leaders argued that government regulation could impede their ability to compete globally, particularly with China, which has prioritized AI development as a national strategy. Sam Altman, CEO of OpenAI, emphasized the need for “sensible regulation that doesn’t slow us down,” highlighting the growing tension between innovation and governance within the tech industry.

The debate over AI regulation has intensified on Capitol Hill, with a recent controversy arising from a provision in President Donald Trump’s tax package. This provision aims to prevent states from enforcing their own AI rules, sparking bipartisan opposition and focusing attention on the lack of controls over AI development. Trump, a vocal advocate for unfettered AI growth, has taken steps to dismantle constraints, including repealing the Biden administration’s executive order on AI and promoting AI-related investments.

House Speaker Mike Johnson defended the move, asserting that “regulatory restraint” is essential for ensuring America’s dominance in AI. However, Attorney General Rob Bonta strongly opposes any effort to block states from developing and enforcing common-sense regulations, noting that states must be able to protect their residents from emerging AI technologies. California, for instance, has implemented several bills this year limiting specific uses of AI, including criminalizing the use of AI to generate sexually explicit images without consent and prohibiting unauthorized deepfakes in political advertising.

The House provision may face challenges in the Senate, where budget reconciliation rules require measures to be directly related to federal spending or revenue to bypass the filibuster. The Senate proposed alternative language denying federal broadband funding to states that impose their own AI regulations, but the provision’s fate depends on the ruling of the Senate parliamentarian. Senate Commerce Chairman Ted Cruz described the Senate’s approach as “very sound policy,” although the parliamentarian’s decision is still pending.

As the regulatory debate continues, Amazon is ramping up its investment in AI infrastructure. The company recently announced plans to spend up to $20 billion on server farms in Pennsylvania, further evidence of its high-stakes bet on artificial intelligence as a core driver of future growth. Like its peers, Amazon views AI not just as a technological leap but also as a geopolitical one, with industry leaders betting that fewer rules will accelerate their progress.