The South Carolina Small Business Chamber of Commerce is pushing for artificial intelligence regulation as the state’s legislative session approaches, arguing that unregulated AI poses unique competitive risks to local businesses.

The chamber’s advocacy reflects growing concern among small business owners that large corporations deploying AI tools will gain insurmountable advantages in everything from customer service to pricing to marketing. Without guardrails, the argument goes, Main Street cannot compete against algorithms.

The specific regulations sought remain under development. Options range from disclosure requirements, forcing companies to reveal when AI generates content or makes decisions, to more stringent limits on certain applications. Consumer protection advocates have also weighed in, concerned about AI-enabled fraud and deception.

For South Carolina legislators, AI regulation presents both opportunity and risk. Moving quickly could position the state as a leader in emerging technology governance. But poorly designed rules might discourage innovation or burden businesses with compliance costs.

The chamber represents thousands of small businesses across the state, giving its position political weight. But it will face opposition from technology industry groups that prefer voluntary standards to government mandates.

The debate comes as AI tools proliferate at remarkable speed. Capabilities that seemed futuristic two years ago are now commonplace. Businesses of all sizes are scrambling to understand both opportunities and threats.

Small businesses particularly struggle to assess AI’s implications. Larger companies have dedicated teams evaluating new technologies. A neighborhood retailer or service provider often lacks the expertise to even recognize when a competitor gains AI-enabled advantages.

Whether legislation advances in the upcoming session depends on how effectively advocates translate abstract concerns about AI into concrete policy proposals that legislators can evaluate and voters can understand.