Policy & Regulation

Microsoft’s Brad Smith: the US is regulating AI with rules nobody can read

· July 9, 2026
Microsoft’s Brad Smith: the US is regulating AI with rules nobody can read

What happened

Microsoft president Brad Smith criticized the current US approach to regulating artificial intelligence. Speaking at the AI for Good Global Summit, Smith said the US is effectively imposing AI regulation without clear, readable rules. He described the situation as “regulation without transparent or accessible guidelines,” making it difficult for companies and innovators to understand what compliance requires.

Why it matters

Unclear AI regulations create uncertainty that slows down innovation and raises costs for businesses working with AI. When rules are opaque, companies must spend more on legal advice and compliance checks without knowing if they are fully aligned with government expectations. This dynamic weakens trust between regulators and the industry, increasing the risk of costly missteps or excessive enforcement. For operators and founders, the lack of clear rules complicates product planning and investment decisions, as unclear policy environments raise the risk profile of AI projects.

What to watch next

Monitoring how US regulators respond to calls for clearer AI governance will be critical. The government can either clarify its regulatory framework by publishing accessible guidelines or risk stifling AI development amid growing global competition. Builders and investors should watch how enforcement actions evolve in the meantime, as early precedents may signal the direction and firmness of US AI oversight. The industry will also keep an eye on international moves, since divergence in regulatory clarity could shift innovation hubs or investment flows.

AI Quick Briefs Editorial Desk

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