AI industry Launches Aggressive Campaign to Block Regulation, Targeting 2026 Elections
The artificial intelligence industry has initiated a high-stakes battle over regulation, a conflict poised to significantly influence the 2026 midterm elections. Early indicators suggest a strong position for the industry as it flexes its considerable political and financial muscle.
On Thursday, New York Governor Kathy Hochul moved to significantly weaken a bill designed to establish modest AI safety protocols, just hours before President Donald Trump issued an executive order aimed at preempting state-level AI laws.
This apparent concession by Governor Hochul followed the release of the first advertisement of the 2026 cycle by Leading the Future, an AI industry political action committee (PAC) funded by prominent figures like OpenAI President greg Brockman and the venture-capital firm Andreessen Horowitz. The ad, boasting a $100 million war chest, directly attacks New York Assemblyman Alex Bores, a key sponsor of the proposed legislation and a candidate for Congress.
The ad’s targeting of Bores, according to the assemblyman, was not simply about defeating him, but rather a broader message directed at Governor Hochul.”My reaction was, ‘Oh, this is a message to the governor’-this is not just about defeating me,” he said. Hochul is up for reelection in 2026, making her a prime target for industry pressure.
The AI industry PAC is reportedly employing a strategy similar to that used by cryptocurrency lobbyists in 2024: aggressively targeting a select group of candidates wiht substantial spending while concurrently supporting friendly candidates with less visible advertising. Chris Lehane, who spearheaded the crypto industry’s strategy while at Coinbase in 2024, now serves as chief global affairs officer at OpenAI.
Bores is competing for a seat representing New York’s 12th District, currently held by retiring Representative Jerry nadler. The crowded primary field includes Jack Schlossberg, Cameron Kasky, Erik bottcher, and Jami Floyd, among others. The PAC’s financial resources could prove decisive in such a competitive race. However, Bores remains optimistic, arguing that the spending will ultimately highlight his efforts to regulate AI-an issue he believes resonates with voters. “Eighty-four percent of New Yorkers support the RAISE Act and 80 percent of Americans want reasonable regulations on AI,” he noted.
Bores emphasizes the growing public concern surrounding AI’s impact on daily life, citing concerns about job displacement, rising utility costs due to data center expansion, and the effects on children. “This probably wasn’t a topic people were asking a lot about a few years ago, it has certainly become much more of a topic now,” he said.
The assemblyman, who holds a master’s degree in computer science with a specialization in machine learning, previously worked in the industry, including a period at Palantir, whose co-founder, Joe Lonsdale, is a contributor to the PAC funding the campaign against him.
On Thursday, Transformer first reported that Hochul’s proposal would replace the RAISE Act entirely with the language of California’s recently enacted SB 53, a bill that was significantly softened following industry lobbying.If adopted by state legislators-an outcome considered unlikely-the move would establish a low regulatory ceiling for two of the nation’s largest states.
A spokesperson for Governor Hochul stated that New York is “leading with common-sense laws to protect children, families, and consumers” and that the state’s approach should serve as a national model.
Following Trump’s executive order, which seeks to prioritize federal standards over state regulations, Bores released a statement condemning the move. “Let’s be clear about what just happened: a handful of AI oligarchs bribed Donald Trump into selling out America’s future and intimidating states who want to put even basic guardrails on the most powerful technology ever created,” he wrote. “Trump isn’t just ignoring potential dangers from out-of-control AI development; he’s throwing the door wide open for them. that’s why we need more members of Congress who will install necessary guardrails before it’s too late.”
