Federal Digital Commission would have pre-clearance review of frontier AI models, ability to pause release without necessary safeguards, and assess civil penalties of up to 15% of a firm’s prior-year global revenue

WASHINGTON, D.C. — U.S. Senator Peter Welch (D-Vt.), Member of the Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights, joined U.S. Senator Michael Bennet (D-Colo.) today in announcing a new proposal that would build off of their landmark legislation to create a new independent federal agency to regulate frontier artificial intelligence (AI) models and social media.  

The AI Regulator Act would require pre-certification for frontier AI models, delay the public release of any AI model that could pose catastrophic risks without necessary safeguards, and issue formal rulemakings to set guardrails that keep pace with the speed of innovation. It could also conduct investigations, engage in research, and impose penalties of up to 15% of a firm’s prior-year global revenue for violations. These new authorities add to the proposed Federal Digital Commission’s mission to regulate the largest digital platforms and ensure that a dedicated agency is empowered to protect Americans from catastrophic AI risk, safeguard our kids online, reduce harmful market concentration, and prevent national and economic security risks. 

“Americans in Vermont and across the country are freaked out by the warnings of AI researchers, and I’m right there with them. It’s clear we can’t leave it to AI companies to self-regulate—just like we don’t let drug companies, or Wall Street, or Big Oil self-regulate. Americans need reassurance that an independent expert agency will advocate on behalf of the public good and public safety,” said Senator Welch. “Our commonsense bill would provide the comprehensive oversight of Big Tech and AI that is sorely needed.”  

“The challenge posed by a new technology and a new industry able to profoundly transform our economy and society is one we have faced before,” said Senator Bennet. “In the past, we created new expert agencies to regulate aviation, pharmaceuticals, and telecommunications. But today, no such agency exists for AI or social media platforms. Oversight is fragmented between states and federal agencies, while Congress tries to address each new problem one bill at a time. The Federal Digital Commission would keep pace with innovation, act before serious harm occurs, and have the authority to hold companies accountable when they break the rules.”  

The proposed AI Regulator Act would: 

1. Give regulators the power to pause certain AI releases by allowing a pause of up to six months on the public distribution of AI models with the potential for catastrophic risk, or until reasonable safeguards are in place. 
2. Put major tech companies under closer oversight by allowing the Commission to designate systemically important digital platforms or developers for additional reporting and regulation. 
3. Back its rules with substantial penalties by establishing a five-member commission that could hold hearings, investigate, conduct research, issue rules, and impose civil penalties of up to 15 percent of a firm’s prior-year global revenue in a year for violations.
4. Set safeguards for frontier AI by requiring developers to meet risk-mitigation, catastrophic risk incident-reporting, and transparency requirements. 
5. Protect kids and consumers online by establishingage-verification and age-appropriate design standards, consumer protections, and transparency requirements for platforms’ terms of service and content-moderation policies. 
6. Address national and economic security risks by including provisions concerning Americans’ data held by foreign AI companies, U.S. subsidiaries for certain foreign firms, and transparency about where online content originates. 

The Senators first introduced the Digital Platform Commission Act in the Senate and House in 2022 and reintroduced the bill in the Senate in 2023. The proposal seeks to bring oversight of digital platforms into a dedicated agency. Today, responsibility for competition, consumer protection, privacy, online safety, and national security remains spread across the federal government. 

Learn more about the proposed AI Regulator Act and read a Section-by-Section summary of the legislation.  

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