SCOTUS muddies the AI regulation waters with Chevron decision

​A view of the U.S. Supreme Court in Washington, U.S. June 29, 2024.
A view of the U.S. Supreme Court in Washington, U.S. June 29, 2024.
REUTERS/Kevin Mohatt

On Friday, the US Supreme Court struck down a landmark ruling on federal agencies’ power, known as “Chevron deference,” that required courts to defer to the agencies’ “reasonable” interpretations of “ambiguous” federal legislation.

This means federal regulations – from telecom and environmental rules to work safety and AI regulation – could now face increased legal challenges, which is a big win for conservatives looking to rein in the executive.

The case: While it sounds like an obscure chess gambit, “Chevron deference” was a pretty straightforward legal doctrine. It held that federal agencies could make their own rules when Congress left aspects of law ambiguous – which they often do – and that courts should defer to the expertise of each agency. But Friday’s ruling held that the executive branch was essentially carrying out lawmaking responsibilities that should be left to Congress.

The AI upshot? The immediate impacts on AI regulation will be limited because there isn’t much on the books yet. To get future regulations to stick under the new ruling, however, Congress will likely have to lay out regulations in minute detail or write laws specifically empowering agencies to cover certain aspects of regulation. Given how slowly Congress moves, the extra legwork could put regulation perpetually behind the pace of innovation. And Congress isn’t known for its tech expertise. Remember when Mark Zuckerberg had to remind one member how social media companies make money: “Senator, we run ads”? Or when another senator asked if the company would “end finsta”?

The danger here is that, depending on how the ruling is interpreted, Congress may have to be overly prescriptive about AI – “if itcan get a law passed at all,” says Eurasia Group’s Scott Bade. “Given how slowly Congress acts, the question then is whether laws can be written in a way that keeps up with the rapid evolution of AI technology.”

More from GZERO Media

Chicken eggs are showing in an incubator Tuesday, March 18, 2025 at Sunnyside Hatchery in Beaver Dam, Wisconsin. They will be in the incubator for 21 days.

2.3: US inflation fell to 2.3% in April, as prices for airfare, hotels, and eggs — yes eggs! — plunged. Economists warned that inflationary effects of Trump’s tariffs, many of which have been temporarily suspended, could hit later in the year.

Chinese President Xi Jinping shakes hands with Brazil's President Luiz Inacio Lula da Silva after a signing ceremony and a joint press conference, at the Great Hall of the People in Beijing, China, May 13, 2025.
REUTERS/Tingshu Wang

Just one day after the US and China eased their tariff war, President Xi Jinping made a play for greater influence in Washington’s own neighborhood.

A plane docks on the tarmac after an air traffic control outage brings flights to a standstill at Newark Liberty International Airport in Newark, New Jersey, USA, on May 12, 2025.
REUTERS/Eduardo Munoz/File Photo

It’s been three-and-a-half months since a devastating aircraft collision near Washington National Airport killed 67 people in the worst air crash in the United States since 9/11. Yet, there are no signs at all that air traffic control has shored up US airspace. If anything, the situation is worse.

In this new episode of Tools and Weapons, Microsoft Vice Chair and President Brad Smith and former Microsoft CEO Steve Ballmer share insights on the early days of Microsoft and the pitch that convinced Ballmer to join the company. They explore his journey from scaling the company from a small 30-person startup to one of the most valuable companies on the planet. They also discuss how three traits — irrational confidence, realism, and persistence — have helped him succeed at Microsoft and today as the owner of the LA Clippers. Subscribe and find new episodes monthly, wherever you listen to podcasts.

Open Call is the heart of Walmart’s $350 billion commitment to US manufacturing, supporting products made, grown or assembled in America. The pitch event represents a unique opportunity for selected entrepreneurs to meet face-to-face with Walmart merchants and earn a chance to get their products on store shelves nationwide. Last year, finalists from across the country represented 48 states, with entrepreneurs from over half these states receiving deals. It’s all a part of Walmart’s investment in American jobs and communities. Learn more about Walmart’s annual Open Call.

Using AI to diagnose patients with a smartphone but no healthcare access | Global stage

Artificial intelligence is often seen as a futuristic tool—but for some global health challenges, it’s already the only solution. Dr. Juan Lavista Ferres, Microsoft's Chief Data Scientist, Corporate Vice President, and Lab Director for the AI for Good Lab, points to a powerful example: diagnosing a leading cause of childhood blindness in newborns.