South Carolina Business Coalition Seeks AI Regulation Ahead of Legislative Session
Published January 2, 2026
The South Carolina Small Business Chamber of Commerce is advocating for state-level artificial intelligence regulation as the legislative session nears, a move that could conflict with an executive order from President Donald Trump that blocks state AI oversight, according to WCSC-TV.
Frank Knapp, the chamber’s president and CEO, stated that AI presents serious risks requiring immediate action. “What we don’t want is artificial intelligence grooming our children for sexual exploitation and for them to commit harm to themselves even suicide,” Knapp said. “The same happens with adults that look for emotional counseling with these AI chat boxes. That is a serious problem.”
Healthcare a Key Concern
Knapp noted that 47 states currently have bills aimed at managing AI use in healthcare. The push coincides with growing concerns about AI’s role in mental health services.
Charleston resident Will Vandergrift said he supports regulation, especially for mental health applications. “AI should be used as a mental health provider at all. I don’t think that is, I don’t think you can replace a human’s expertise with something as nuanced as the human psyche,” Vandergrift said.
Potential Federal-State Conflict
President Trump’s executive order seeks to prevent state AI regulation to maintain U.S. leadership in the technology. Knapp argued that states cannot wait for federal action.
“We just can’t wait for down the road. It’s all happening now and it’s up to the states,” Knapp said. “Congress is not going to do anything to regulate the negatives out of AI.”
A legal battle is expected between states that enact AI regulations and the president, testing the power of the executive order.
