Virginia is home to the highest concentration of tech talent and the third-largest tech workforce in the country. 330,000 Virginians depend on the Commonwealth’s dynamic tech sector — valued at $21 billion — for their livelihood. Many families in Virginia were just hit hard by federal layoffs, so it’s more important than ever that state lawmakers protect the high-quality jobs that the tech industry provides.
The health of Virginia’s tech economy depends on the growth of emerging technologies like artificial intelligence. Virginia’s AI sector is already worth an estimated $1.71 billion, and that number is growing every day thanks to the commonwealth’s leading data centers, fintech innovators and research institutions.
If Virginia doesn’t strike the right balance on regulating AI, we could risk turning the commonwealth from an AI hub into a ghost town. Right now, a bill on Gov. Glenn Youngkin’s desk threatens to make that ghost town a reality.
HB 2094, introduced by Del. Michelle Lopes Maldonado, D-Manassas, seeks to regulate so-called “high-risk” AI systems to prevent algorithmic discrimination. The legislation outlines responsibilities for AI developers and deployers, including conducting impact assessments and implementing risk management policies. The bill is undoubtedly well-intentioned, but its broad scope and burdensome requirements could backfire on lawmakers by driving AI development out of Virginia — all without meaningfully advancing civil rights.
HB 2094 aims to prevent discrimination through AI-specific regulations, but bias exists both online and offline. Instead of singling out AI with a specific regulatory structure, Virginia should strengthen existing civil rights laws to ensure broad protections in different settings. Holding AI to the same fairness standards as other systems is essential, but overregulation will only drive innovation out of state. In other words, just enforce the laws already on the books.
A recent analysis from my organization, Chamber of Progress, finds that complying with HB 2094 could cost Virginia’s AI stakeholders a staggering $290 million, with each model update triggering additional costs. AI giants like Nvidia or Google might not bat an eye at the added expense, but resource-strapped startups and competitors could be devastated. If Virginia wants to give incumbent players an ever greater lead in the AI race, HB 2094 is the perfect way to trip up the competition.
Virginia can’t afford to waste legislative resources on a bill that’s likely to be dismantled in the courts. Defending HB 2094 would divert taxpayer dollars to unnecessary regulatory overhead and ill-fated legal battles. Instead of doubling down on flawed regulation, lawmakers should prioritize policies that balance innovation with consumer protection.
Virginia should take a lesson from Colorado, the only state to have enacted broad AI regulations similar to HB 2094. In his signing statement, Gov. Jared Polis expressed concerns that Colorado’s AI law could harm the state’s tech sector. Now, as the implementation phase unfolds, Colorado lawmakers are already considering rolling back some of the law’s more onerous provisions.
To avoid Colorado’s missteps, Gov. Youngkin should veto HB 2094. Virginia should take the time to debug this legislation before it crashes the system.
Adam Kovacevich is the founder and CEO of the center-left tech industry coalition Chamber of Progress. Kovacevich has worked at the intersection of tech and politics for 20 years, leading public policy at Google and Lime and serving as a Democratic Hill aide.