For most of this century, US tech companies operated with minimal regulatory oversight, building massive, profitable enterprises that reshaped society. However, public sentiment is shifting dramatically. A Pew Research Center poll reveals 40% of US adults believe AI will negatively impact society over the next two decades, compared to just 16% who expect positive outcomes. This growing anxiety reflects industry leaders' own warnings about job displacement and existential risks.

The backlash is manifesting in concrete ways. Texas has paused data center approvals pending audits, while 146 AI-related bills were enacted across all 50 states in 2025, covering child safety, privacy, and algorithmic bias. Congress recently rejected the Trump administration's proposed 10-year moratorium on state AI legislation, instead advancing federal measures like surveillance pricing rules.

Courts are also adopting a tougher stance. In New Mexico, a court fined Meta $942 million and mandated improved child safety practices. A California ruling determined engagement-based algorithms lack First Amendment protection, potentially enabling state social media addiction laws. With 29 states suing Meta over alleged harms to children's mental health, the legal landscape is rapidly evolving. Tech companies must adapt to this new reality by prioritizing safety and public interest over unchecked growth.