Barnes proposes real rules to prevent artificial intelligence from gouging WI consumers

This story is based on reporting by Pat Kreitlow, Up North News.

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Former Lt. Gov. Mandela Barnes is proposing to make Wisconsin a leader in online consumer protection, targeting the use of artificial intelligence in pricing and insurance decisions if he is elected governor.

Barnes, one of more than a half-dozen Democratic candidates competing in the Aug. 11 primary, has released a plan that would prohibit companies operating in Wisconsin from using AI to charge consumers different prices based on data collected from their online activity — a practice known as surveillance pricing. Such data can include browsing histories and personal financial information.

The plan would also bar health insurers from denying coverage to patients based on AI determinations and would direct the state to pursue social media companies that allow AI-enabled fraud against their users. Additionally, the proposal calls for full upfront pricing disclosure, prohibiting companies from adding hidden fees after an initial price is presented.

Barnes has pointed to the federal policy landscape as a reason for state action. The Biden administration had moved aggressively to curtail hidden fees across industries including airlines, event ticketing and credit cards. The Trump administration has since sought to roll back many of those regulations.

AI a common thread among Democratic candidates

Barnes is not alone among the Democratic field in addressing AI policy. The issue has become a recurring topic, along with the rapid expansion of data centers needed to support AI computing.

State Sen. Kelda Roys has introduced legislation prohibiting health insurers from using AI to deny prior authorization for medical care. Lt. Gov. Sara Rodriguez has called for transparency and accountability in AI use and has advocated for ensuring Wisconsin workers benefit economically from the technology rather than simply bearing its costs.

Joel Brennan, former secretary of administration under Gov. Tony Evers, supports a pause on data center construction. Rep. Francesca Hong has proposed a moratorium on data center construction, a ban on surveillance pricing and a requirement that employers disclose to workers and job applicants when AI, rather than human judgment, is used in hiring, firing or promotion decisions.

Missy Hughes, who led the Wisconsin Economic Development Corporation under Evers and served on the Governor’s Task Force on Workforce and Artificial Intelligence, has emphasized workforce education and training in AI-related fields.

Milwaukee County Executive David Crowley expressed frustration that Republican legislative leaders closed the current session without taking up AI or data center oversight measures.

The November contest

Democratic primary voters will select their nominee on Aug. 11. That candidate will face U.S. Rep. Tom Tiffany, the presumptive Republican nominee, in the November general election.

When asked by TMZ what advice he would offer college graduates concerned about AI’s impact on their career prospects, Tiffany said graduates should pursue jobs that AI cannot replace and encouraged interest in technical education, while acknowledging that some white-collar careers may be displaced by the technology.

Barnes responded to those remarks at the time, saying it was “nothing more out of touch than a DC politician saying it’s on young people to deal with AI replacing their jobs.”