In a move that’s sure to shape the future of AI regulation in Virginia, Governor Glenn Youngkin has decided to veto the High-Risk Artificial Intelligence Developer and Deployer Act, also known as HB 2094. This bill was designed to create a detailed framework for managing ‘high-risk’ AI systems in the state. If it had passed, Virginia would’ve been right up there with Colorado in leading the charge on AI governance.
The veto came just before the bill’s approval deadline on March 24, 2025. Governor Youngkin expressed worries about the economic impact the bill might have. He believes that the proposed regulations could hinder innovation and scare off business investments, especially affecting startups and small businesses. He pointed out, “HB 2094’s rigid framework fails to account for the rapidly evolving and fast-moving nature of the AI industry and puts an especially onerous burden on smaller firms and startups that lack large legal compliance departments.”
The bill was expected to bring nearly $30 million in compliance costs for AI developers, a hefty price tag that many businesses might struggle to afford. This concern echoes what industry insiders have been saying about how such regulations could dampen innovation and investment in Virginia.
But don’t think Virginia is completely without AI regulations. Governor Youngkin’s Executive Order No. 30, signed in 2024, already sets some baseline standards for using AI in state government. It covers transparency, risk mitigation, and data protection, with the Virginia Information Technologies Agency (VITA) tasked with setting these standards. Plus, there’s an Artificial Intelligence Task Force that’s still hard at work offering recommendations on responsible AI use.
So, while HB 2094 didn’t make it through, businesses still need to play by the existing rules. This includes following antidiscrimination and consumer protection laws that apply to AI-driven activities. And if you’re operating across state lines, keep an eye on Colorado’s AI law and similar efforts elsewhere.
The federal scene is shifting too, with ongoing talks about accountability and standards led by groups like the National Institute of Standards and Technology. As the regulatory landscape keeps changing, businesses need to stay sharp and adaptable to navigate the complexities of AI governance.
