Experts at Senate hearing urge worker protections, oversight of data-center incentives and stronger anti-fraud measures for AI

Senators questioned witnesses about the domestic impacts of AI beyond national-security export controls: workforce displacement, data-center incentives and consumer fraud.

Dr. Sarah Myers West told the committee that workers are already feeling displacement and that the social safety net is ill-prepared to catch those affected. She urged policies that prioritize workers’ needs and oversight to ensure accountable deployment. "Workers who are on the front lines of experiencing the impact of AI ... be positioned to have a crucial say in the terms on which AI is deployed in their workplaces," Dr. West said.

On community impacts from data centers, witnesses told senators incentives should be responsive to local needs. Mike Flynn noted data centers support jobs but said companies must do a better job educating local communities. Senators pressed whether municipal and state tax incentives remain appropriate; witnesses recommended community-driven conditions tied to local benefits and safeguards on power and water impacts.

Several senators focused on fraud and consumer protection. Dr. West said generative AI lowers the cost of creating sophisticated scams and called for financial institutions and platforms to play a greater role in identifying and preventing fraud before it reaches consumers.

The hearing included discussion of housing discrimination risks where AI systems can amplify existing inequalities; Dr. West urged enforcement of anti-discrimination laws and better accountability for automated decision tools. The committee closed with calls to improve workforce data collection to monitor dislocation and to explore targeted retraining and incentives.