The wireless industry has long complained that high regulatory fees, strict regulations on tower placement and aesthetics, and other rules imposed by state and local governments are needlessly delaying the spread of modern infrastructure, especially in rural areas. Now, the wireless industry claims, local regulations on artificial intelligence (AI) systems could be contributing to the problem.
In recent comments to the Federal Communications Commission (FCC), wireless companies and associations supported Commission proposals to speed up state and local approvals of wireless infrastructure construction. When adopting a Notice of Proposed Rulemaking (NPRM) in the fall, the FCC claimed that delays in approval create “an effective prohibition of 5G wireless service” in some areas.
“AI is integral to wireless providers’ efforts to deliver high-quality wireless service to people across the country, and leading in AI increasingly requires the capabilities and infrastructure provided by next-generation wireless technologies,” said CTIA–The Wireless Association, in its NPRM comments.
Expansion of generative AI is causing a huge surge in data transmission across all platforms, wireless and wireline. CTIA warns that without timely expansion of 5G networks, wireless could become a major AI bottleneck. Also, it claims that the wireless industry is counting on AI advancements to improve security and network design.
CTIA points to proposed laws now before state legislatures that could complicate both AI and broadband deployment. Passage of those bills could “create a patchwork of unnecessary and potentially conflicting state requirements governing both AI and the broadband infrastructure,” it said.
INCOMPAS, which represents wireless, wireline, and AI infrastructure companies, said that state lawmakers introduced 1,025 bills in 2025 to regulate some form of AI development.
“The Commission should clarify that such measures fall within the scope of Section 253(a) [limiting state and local authority over communications] and, where necessary and appropriate, exercise its preemptive authority under Section 253(d),” it said.
In response, associations representing regulators say that the Communications Act does not apply to AI and that states have authority to regulate “general technology,” even if it affects telecommunications.
“State AI regulations that apply broadly across industries — including to banks, healthcare providers, employers, and retailers — are not ‘telecommunications regulations’ subject to preemption merely because telecommunications providers also use AI,” according to a coalition of associations representing regulators, including the United States Conference of Mayors, the National League of Cities, the National Association of Counties, and the National Association of Telecommunications Officers and Advisors.
