AI’s Rapid Rise Brings Opportunity—and Uncertainty
As artificial intelligence continues to advance at a rapid pace, questions about its long-term impact on jobs, energy, and public policy are taking center stage.
That was the focus of a recent Voices of Montana conversation, where host Tom Schultz spoke with Kevin Frazier, director of the AI Innovation and Law Program at the University of Texas School of Law. Frazier emphasized that while AI is expected to disrupt industries—including law—it also presents opportunities if approached thoughtfully.
“The legal profession is among those most exposed to AI,” Frazier said. “Rather than resisting it, we’re asking how to use it responsibly and prepare students to lead in that environment.”
Energy Demands Spark Local Concern
The conversation turned to concerns about AI’s growing energy demands when Montana Public Service Commissioner Brad Molnar joined the discussion.
Molnar warned that large-scale data centers—critical to AI development—could strain power grids and shift costs onto consumers.
“My concern is what’s actually happening on the ground,” Molnar said, pointing to regional mandates requiring utilities to supply energy to AI operations. “We’re talking about potential blackouts and long-term costs for ratepayers.”
Molnar also referenced ongoing discussions in Montana surrounding large-load tariffs tied to data centers, suggesting residents could bear the financial burden if policies are not carefully structured.
Balancing State Authority and National Strategy
Frazier acknowledged those concerns, emphasizing the need for a balanced approach that respects state authority while addressing national priorities.
“We need to make sure states have the ability to protect their residents,” he said. “At the same time, this is a national issue tied to economic growth and national security.”
He pointed to emerging policy ideas, including requiring data centers to generate their own power and improving coordination between regulators and private companies to reduce strain on energy infrastructure.
The Push for Smarter AI Regulation
Beyond infrastructure, the discussion highlighted the need for more rigorous policy making. Frazier pointed to Montana’s concept known as the “right to compute,” which would require governments to meet higher standards when regulating AI and related technologies.
“It’s about making sure laws are evidence-based and carefully tailored,” he said. “Montana has been a leader in thinking about this.”
Looking Ahead
While a national AI framework has begun to take shape, both Frazier and Schultz noted that clear, comprehensive federal policy is still evolving.
“There’s a growing expectation that Congress will act,” Frazier said. “People recognize this is a transformational technology, and they want clarity.”
For now, the conversation around AI remains a balancing act—between innovation and oversight, opportunity and risk—as states like Montana navigate their role in a rapidly changing technological landscape.
