Florida Governor Ron DeSantis has built a reputation for freeing markets and trusting Floridians. During COVID-19, he reopened the state early, betting that people could manage their own affairs. He has cut red tape, lowered business taxes, and defended the rights of employers and employees to negotiate work arrangements. The results speak for themselves: People are flocking to Florida and the state leads the nation in economic growth and business formation. CNBC ranked Florida’s economy as tops for business in 2025, and WalletHub calls it the best state for startups.
So why is Florida drifting toward the regulatory reflexes of California, New York, Illinois, and Colorado—blue states racing to tighten control over artificial intelligence? DeSantis recently warned on X that failing to regulate AI is “a subsidy to Big Tech” and that state action is needed to protect political speech, children, intellectual property, and electricity and water services.
He is right to be concerned. But regulating AI isn’t the solution—because AI is not the problem. Misusing AI is. And Florida has more to gain by leading in AI innovation than by copying the regulatory instincts of blue states.
At its core, AI is little more than complex math for predicting outcomes. It is the engine behind an Arizona water utility forecasting pipe failure and Amazon’s robots routing packages to your doorstep. AI’s recent leap forward traces to two forces: dramatically cheaper computing and the invention of transformer models, the architecture that powers systems like ChatGPT and Gemini. These advances slashed the cost of producing high-quality content—whether helpful or malicious.
And that is the source of today’s fears. When the cost of producing text, sounds, and images falls close to zero, so does the cost of producing deepfakes and fraud. A century ago, the FBI noted that cheaper cars enabled more bank robberies. But the answer was not to regulate the automobile—it was to modernize law enforcement. The same logic applies here. Regulating algorithms won’t stop bad actors, building better tools will.
Start with concerns over major platforms disadvantaging conservative views. AI is enabling the rise of more advanced platforms, like Bluesky and Mastodon, which give users more control. Innovation—not regulation—is already biting into legacy social media’s markets.
Protecting children is another area where AI is part of the solution. The Department of Homeland Security uses AI to help investigators locate predators and identify victims. Companies like GameSafe offer AI-powered apps that alert parents to suspicious activity. Predators exploit digital tools, but they also create digital footprints. Florida can promote entrepreneurs building next-generation virtual safehouses for families and allow markets to work.
The same is true for intellectual property. As courts and companies adapt to IP challenges—exactly the forums where such questions belong—AI tools are helping creators identify infringements more quickly. And some AI firms are helping by embedding subtle watermark-style signals that allow users to trace where content was produced. This is innovation providing solutions, which adapts far faster than statutes ever could.
DeSantis is right that data centers should pay for the electricity and water they consume. Florida’s Public Service Commission is already examining prices for power, and water utilities and cities are collaborating with data-center operators on water solutions. Around the country, companies like Meta are designing water-positive facilities that recycle water and boost local water systems.
Florida has been here before. In the late 1990s, when the internet was reshaping commerce and communication, the state responded not with sweeping regulations but with technological adoption, public-private cooperation, and programs that helped university students and startups create new products. That approach positioned Florida as a business leader.
Today’s AI revolution demands the same mindset. Florida should be the state that deploys AI to support parents, modernize policing, and improve utility systems—not the state that tries to control a mathematical discipline evolving too rapidly for any statute to keep pace. If DeSantis wants to continue to grow the Free State of Florida, the path is AI leadership, not AI regulation.
The post Governor DeSantis Should Champion AI Innovation—Not Regulate It appeared first on American Enterprise Institute – AEI.
