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

Listen: Elon Musk, the world’s richest man, made his fortune-breaking industries—space, cars, social media—and is now trying to break the government… in the name of fixing it. But what happens when Silicon Valley’s ‘move fast and break things’ ethos collides with the machinery of federal bureaucracy? On the GZERO World Podcast, Ian Bremmer sits down with WIRED Global Editorial Director Katie Drummond to unpack the implications of Musk’s deepening role in the Trump administration and what’s really behind his push into politics.

France's President Emmanuel Macron speaks during a press conference following a summit for the "coalition of the willing" at the Elysee Palace in Paris on March 27, 2025.

LUDOVIC MARIN/Pool via REUTERS

At the third summit of the so-called “coalition of the willing” for Ukraine on Thursday, French President Emmanuel Macron proposed a multinational “reassurance force” to deter Russian aggression once a ceasefire is in place – and to engage if attacked.

A group demonstrators chant slogans together as they hold posters during the protest. The ongoing protests were sparked by the arrest of Istanbul Metropolitan Mayor Ekrem Imamoglu.
Sopa Images via Reuters

Last week’s arrest of Istanbul Mayor Ekrem Imamoglu sparked the largest anti-government rallies in a decade and resulted in widespread arrests throughout Turkey. Nearly 1,900 people have been detained since the protests erupted eight days ago.

National Security Advisor Mike Waltz and Rep. Elise Stefanik (R-NY), the then-nominee for US ambassador to the UN, during a Cabinet meeting at the White House in Washington, DC, on Wednesday, Feb. 26, 2025.
Al Drago/Pool/Sipa USA

An internal GOP poll found a Republican candidate trailing in a special election for a conservative-leaning district in Florida, forcing US President Donald Trump to make a decision aimed at maintaining the Republican Party’s majority in the House.

South Sudan's Vice President Riek Machar, pictured here addressing the press in 2020.

REUTERS/Samir Bol

Alarm bells are ringing ever more loudly in South Sudan, as Vice President Riek Machar — chief rival to Prime Minister Salva Kiir — was arrested late Wednesday in an operation involving 20 armored vehicles at his compound in Juba. He was placed under house arrest, a move that is fueling fears that the country will soon descend into civil war.

Afghan Interior Minister Sirajuddin Haqqani, pictured here at the anniversary event of the departure of the Soviet Union from Afghanistan, in Kabul, Afghanistan, on April 28, 2022.

REUTERS/Ali Khara

The Trump administration has dropped multimillion-dollar bounties on senior Afghan officials from the Haqqani network, a militant faction that carried out some of the deadliest attacks on American troops but has now positioned itself as a moderate wing within the Taliban government. But why?

The Canadian flag flies on Parliament Hill in Ottawa.

REUTERS/Blair Gable

Canada’s foreign interference watchdog is warning that China, India, and Russia plan on meddling in the country’s federal election. The contest, which launched last weekend, has already been marked by a handful of stories about past covert foreign interventions and threats of new ones.