Mountain West Leaders to Congress: Stop Handing Big Tech the AI Monopoly

BOISE, Idaho — A coalition of Mountain West business leaders is warning Congress that the emerging patchwork of state artificial intelligence regulations threatens to hand Big Tech companies an unearned competitive advantage—while crushing the small businesses and startups that drive regional innovation.

In a letter to congressional leaders supporting the federal AI regulatory moratorium included in the One Big Beautiful Bill Act, executives from Montana, Washington, and Idaho argue that well-intentioned state-level AI laws are creating exactly the opposite of their intended effect: strengthening the monopolistic power of companies like Facebook, Microsoft, and Apple.

“Companies operating across state lines face the impossible task of complying with conflicting regulations,” the business leaders wrote. “What’s permissible AI use in Montana may violate Washington state law, forcing businesses to choose between limiting their operations or accepting significant legal and financial risks.”

The Compliance Trap

The letter, signed by executives including William Junkermier, Vice President of Cerium Networks—a managed services company providing unified communications and technology solutions with operations across the Mountain West, including locations in Montana’s Billings and Helena—and Idaho business leaders like Simplot board member John Otter, highlights a fundamental problem with state-by-state AI regulation: only the biggest companies can afford to navigate it.

The patchwork is already emerging. Montana recently passed its Right to Compute Act, which protects citizens’ rights to own and use AI tools while limiting government regulation. But if neighboring states adopt more restrictive approaches, businesses operating across the region will face exactly the kind of regulatory maze the coalition warns about—where AI applications legal in Montana could violate Washington or Idaho law.

While Meta and Microsoft maintain armies of compliance lawyers and regulatory affairs specialists, regional startups and small businesses face impossible choices. They can either hire expensive legal teams they can’t afford, abandon AI technologies that could make them more competitive, or risk violating laws they may not even know exist.

“Smaller businesses and startups lack the resources to navigate dozens of different state requirements,” the coalition warns. “These costs ultimately get passed to consumers and reduce our competitiveness against international competitors who benefit from more unified regulatory approaches.”

Innovation Exodus

The business leaders warn that regulatory uncertainty is already driving investment and talent away from the Mountain West. Tech companies evaluating where to locate AI operations increasingly factor regulatory complexity into their decisions—often choosing states or countries with more streamlined approaches.

This trend threatens to undermine the region’s natural advantages for AI development: abundant renewable energy, strong research universities, and growing tech sectors. Instead of capitalizing on these strengths, the Mountain West risks becoming a regulatory backwater while innovation flows to more business-friendly jurisdictions.

“The current trajectory toward state-by-state AI regulation is driving investment and talent away from our region,” the letter states. “This brain drain threatens our states’ long-term economic development and technological leadership.”

Sectors at Risk

The impact extends beyond traditional tech companies. Agriculture and natural resources—backbone industries of the Mountain West—increasingly rely on AI for precision farming, predictive maintenance in energy production, and supply chain optimization.

“Inconsistent state regulations could force these critical industries to abandon beneficial AI applications, reducing productivity and competitiveness,” the business leaders warn.

Meanwhile, their competitors in China and the European Union benefit from unified AI governance frameworks that give their companies clear competitive advantages over American businesses trapped in regulatory chaos.

Critics and Federal Solution

Rather than accept this fragmented future, the Mountain West coalition is pushing for a time-bound federal moratorium on state AI regulation.

Critics argue the proposed 10-year moratorium is too long and represents federal overreach. But the business leaders counter that the current regulatory chaos demands immediate action. They argue existing federal frameworks already provide robust consumer protections through agencies like the FTC, while sector-specific regulations in healthcare and finance address AI use in high-risk contexts.

“National competitiveness requires national standards,” the letter concludes. “The United States cannot afford to handicap its AI sector with a maze of conflicting state requirements while other nations advance with coordinated approaches.”

The coalition’s message to Congress is clear: don’t let good intentions pave the road to Big Tech dominance. Level the playing field, or watch regional innovation get crushed under the weight of regulatory complexity that only the giants can afford to navigate.