Key Points:

• Democrats won majorities in several state legislatures and governorships, creating new tech regulation opportunities

• New democratic trifectas in Wisconsin and Michigan will likely advance aggressive tech accountability agendas

• Legislators will push for AI transparency, third-party audits, and enhanced data privacy protections across various states

Advocates for tech accountability see opportunities for significant gains in 2027 after Democrats wrested back the majority of governorships and statehouse chambers for the first time since 2010. 

They expect the dramatic power shift in states to inject fresh energy into regulating data privacy, social media, artificial intelligence and other aspects of the tech industry.

“We’re ready to build on this momentum and pass state laws that hold Big Tech accountable, from banning surveillance pricing to investing in entry-level career pathways to limiting human-like AI chatbots,” said Mick Tobin, co-founder and advocacy director of Young People’s Alliance, a bipartisan, youth-led advocacy group.

Matt Schwartz, a privacy policy analyst at Consumer Reports, said he was eyeing Arizona, Michigan, Nevada, Pennsylvania and Wisconsin — new Democratic-trifecta states that lack comprehensive data privacy laws. 

“My mind immediately jumps to: Will there be some new opportunities to push for comprehensive bills, to push for other tech policy proposals that were difficult in those states given divided control?” Schwartz said.

The Tech Oversight Project plans to prioritize issues like the Age-Appropriate Design Code, chatbot protections, restrictions on AI in classrooms and social media warning labels in 2027. With no comprehensive regulations coming out of Washington, D.C., it’s go-time for states, said Marjorie Connolly, the group’s vice president of communications.

“We’re in the middle of a watershed moment, and it’s only going to continue to ramp up,” Connolly said.

Both parties have pushed regulations on tech, but many Democrats ran this year on platforms that included tech accountability and will want to deliver on those campaign trail pledges in the new year — especially in states where they will soon be in power.

Read more: Candidates backing AI regulations notch election wins

Additionally, polls show voters are hostile to AI data centers, anxious about AI’s implications for society, and support stricter laws to keep kids safe online. Concerns heard on the campaign trail often show up as legislation once candidates are sworn into office.

“Candidates in both parties who campaigned on AI, data centers and privacy will now be taking office with promises to keep,” said Tatiana Rice, senior director of U.S. legislation at the Future of Privacy Forum, which provides analysis but does not endorse legislation.  

Wisconsin Gov.-elect David Crowley, a Democrat, unveiled a tech safety agenda in October that included calls for AI chatbot regulations, a prohibition on surveillance pricing, a ban on addictive design features, and higher privacy settings by default for kids.

“I’m not going to wait around for D.C. to act, I’ve got a plan to protect Wisconsin’s kids and families, and as governor, I’m going to get it done,” Crowley said in a statement announcing his tech agenda. 

Crowley is likely to get some help enacting his agenda after Wisconsin Democrats flipped both legislative chambers, establishing a Democratic trifecta for the first time since 2010.  

Similarly, a new Democratic trifecta in Michigan could breathe fresh life into the Senate Democrats’ Kids Over Clicks legislative package, which stalled in the Republican-led House this year. The package includes a ban on addictive feeds, an Age-Appropriate Design Code and chatbot protections.

“That presents a huge opportunity now that the Michigan House has flipped,” said Zamaan Qureshi, co-founder and director of campaign and policy at Design It For Us, a youth-led coalition.

The coalition’s legislative priorities for next year include chatbot developer liability, frontier model safety and transparency.

The Seattle-based Transparency Coalition anticipates third-party audit requirements for frontier AI models will be a “hot topic” in 2027 after high-profile incidents such as the Hugging Face hack by OpenAI agents. California, Illinois and Virginia lawmakers took steps this year to establish third-party auditing regimes. 

“Third-party auditing happens every day in business,” Transparency Coalition editorial lead Bruce Barcott wrote recently. “The big accounting firms … regularly audit and verify the financial records of Fortune 500 companies. … In the world of tech and AI, it’s become clear that a similar kind of auditing is needed. It’s not financial. It’s technical and legal.”

Democratic legislators long active in tech policy are also feeling bullish. Minnesota Rep. Kristin Bahner, who is part of a new Democratic majority in the House, said she and others are pushing for a dedicated technology committee, which she is positioned to chair.

Bahner’s focus for the upcoming session includes AI transparency, governance and accountability; social media and chatbot safety; and the establishment of a state-endorsed digital identity, modeled on Utah’s, to protect Minnesotans from online scams and fraud. 

“This is where Minnesotans and the nation have a clear concern, and it is the focus of my vision to meet them where they are and focus on critical issues around cybersecurity, national security on a digital level, and technology modernization,” Bahner said.