This was a whole thing last year in the Task Force and the argument stems from the Supremacy Clause. Both sides agree that the states are going to botch this and create a patchwork of laws that won’t work together and the only way to address that is for Congress to do something.

Not that I support this law, but I have a hard time seeing how individual states could effectively regulate AI anyway

I suppose it could give state residents the right to sue an AI company doing business in their state.