Political fixer: AI faces tougher regulation than any industry

Key takeaway

• Bradley Tusk, a political strategist known for helping startups navigate regulation, told Compound Interest that AI companies face an unusually difficult regulatory environment compared to other industries he has worked in.

• Unlike Uber or FanDuel, AI lacks the consumer-demand lever Tusk traditionally uses to fight regulation, and public fears about AI risks make his playbook less effective.

• The real regulatory fights will happen at the state and local level, particularly in Texas, Tennessee, Minnesota, and Indiana, rather than in Washington.

3 Key Points

FAQ

Why can't Tusk use his usual strategy with AI companies?

Tusk says it is not inspiring to tell people they must fight for access to Claude, ChatGPT, or Grok. He argues that AI lacks the kind of consumer demand that made his strategy work for Uber and FanDuel.

What is the difference between how Anthropic and OpenAI are positioning themselves?

Anthropic has positioned itself as the 'Luke Skywalker to OpenAI's Darth Vader,' repeatedly warning the public about AI risks. OpenAI has been more sanguine and has positioned itself close to the Trump administration.

Where will the biggest regulatory fights over AI happen?

Tusk says most fights for LLMs, data-center operators, application makers, and power providers will come at the state and local level, particularly in Texas, Tennessee, Minnesota, and Indiana.