Industry experts urge Iowa lawmakers to balance innovation, guardrails in AI legislation

Artificial intelligence is emerging as one of the most complex policy issues facing Iowa lawmakers this session, as multiple bills aimed at regulating the technology advance through the Iowa legislature.Industry leaders addressed lawmakers at a forum on Wednesday at the downtown Hilton. They told those in attendance that Iowa has positioned itself as a national leader in artificial intelligence development — but cautioned that future growth will depend on measured, informed policymaking. The technology behind ChatGPT, one of the world’s most widely used AI tools, was developed in Iowa. According to a report from the American Edge Project, the state ranks 11th nationally in AI growth and has attracted more than $500 million in revenue tied to artificial intelligence and data center projects.Those investments, experts said during a Statehouse policy forum Wednesday, rely heavily on predictability in state law.“You have a lot of policymakers that don’t know anything about AI or what the demands are going to be, what kind of guardrails need to be on it,” said Jennifer Young, CEO of the Technology Councils of North America, during the event. “You have a lot of state governments and the federal government looking at what kind of guardrails do we need to be putting on this.”Young, who tracks AI policy across the country, said the pace of legislation has outstripped understanding. More than 1,200 AI-related bills were introduced nationwide in 2025, with more than 1,100 already filed this year. “The lack of knowledge … in many cases is driving some policy that doesn’t necessarily make sense in a lot of states,” Young said in an interview following the forum. Several AI-related bills are moving through the Iowa Legislature, including proposals regulating artificial intelligence in elections, campaign materials and state agencies. One bill restricting the use of AI-generated content in political campaigns advanced out of a House subcommittee this week. Lawmakers are also considering regulations on AI chatbots and automated decision-making systems. Lt. Gov. Chris Cournoyer told attendees that Iowa’s approach must protect residents without undermining economic growth.“Good policy should encourage innovation, not slow it down, and protect our people without limiting our progress,” Cournoyer said.During the session, lawmakers raised concerns they said they are hearing from constituents, including fears about deepfakes, child safety and the broader societal risks of artificial intelligence. Young said those concerns are legitimate but stressed the importance of grounding policy decisions in accurate information.She also pointed to Iowa’s existing data privacy law — enacted years before many other states adopted similar protections — as evidence that lawmakers already have tools that apply to AI.“You don’t need to overregulate,” Young said. “You also need to pay attention to what rules and laws you already have on the books, because many of them are applicable to AI.”Industry leaders repeatedly encouraged lawmakers to engage with local technology companies as legislation is drafted, noting that smaller, Iowa-based firms are often most affected by unintended consequences of regulation.As artificial intelligence continues to evolve rapidly, speakers at the forum said Iowa’s challenge will be maintaining the steady policy environment that has helped attract investment — while addressing public concerns and keeping the state competitive in a national race for AI development.