United States of America: Aligning Incentives for Leadership, Excellence, and Advancement in Development Act (AI LEAD Act/S.2937) including content moderation regulation was introduced in Senate

On 29 September 2025, the Aligning Incentives for Leadership, Excellence, and Advancement in Development Act (AI LEAD Act/S.2937) was introduced in the Senate, defining harm to include reputational injury, financial injury, and psychological harm reasonably expected to result in substantial impairment of mental health, alongside property and physical injury. The definition encompasses derivative harms affecting entities or dependents. The expansive definition ensures that liability may extend to harms resulting from speech-related impacts, such as reputational damage caused by outputs of artificial intelligence systems.