Generative AI Faces Rising State Penalties and Federal Preemption Debate
Regulatory Landscape and Liability Exposure
California’s SB‑53 imposes $1 M penalties for each “catastrophic risk” omission, while Texas TRAIGA levies $200 k per breach and $40 k daily for continued violations. Illinois introduces strict product‑liability standards that treat algorithmic bias and disinformation as “harm.” Collectively, these measures