Thomas Unise
President Trump has signed an executive order aimed at establishing a national regulatory framework for artificial intelligence while potentially limiting states’ abilities to create their own AI regulations.
Key Components of the Executive Order
The order, titled “Ensuring a National Policy Framework for Artificial Intelligence,” creates an AI litigation task force within the Justice Department specifically designed to challenge state AI laws that the administration considers in conflict with federal policy. Additionally, it directs the Department of Commerce to develop guidelines that could make states ineligible for future broadband funding if they pass what the administration deems as “onerous” AI laws.
During Thursday’s signing ceremony, Trump emphasized the need for centralization, stating, “We want one central source of approval… Every time you make a change, and it could be a very reasonable change, you still won’t get it approved if you have to go to 50 states. This centralizes it.”
Industry Support and Exceptions
The push for federal preemption of state laws has been largely supported by AI investors, conservative policy organizations, and tech industry groups who argue that a patchwork approach to regulation could hinder America’s global competitiveness in AI development. White House AI and crypto adviser David Sacks has been particularly vocal about favoring a light-touch regulatory approach.
Notably, the order includes carve-outs that would preserve state laws focused on protecting children, promoting data center infrastructure, and encouraging state governments to procure AI tools.
State-Level Opposition
Several state officials have expressed concerns about the executive order’s attempt to curb state regulatory power. New York Attorney General Letitia James defended states’ roles, saying, “AI development and deployment are happening quickly, and state attorneys general are the most agile regulators we have historically.”
In the absence of comprehensive federal regulations, many states have already moved forward with their own AI governance frameworks. California recently required large tech companies to publish safety frameworks for their AI models, while New York’s legislature passed a bill enabling civil penalties of up to $30 million against AI developers failing to meet safety standards.
Legal Challenges Ahead
Civil rights groups, including the American Civil Liberties Union, have already called the order “unconstitutional,” suggesting it will face legal challenges. Constitutional limitations mean the president cannot unilaterally prevent states from passing their own laws, setting the stage for potential court battles over federal versus state authority in AI regulation.
The order specifically criticizes certain state laws, such as Colorado’s SB24-205 aimed at limiting “algorithmic discrimination,” characterizing such legislation as attempts to “embed ideological bias.”
Looking Forward
The executive order instructs advisers to prepare legislative recommendations for Congress to establish a federal policy framework for AI, signaling that this is just the beginning of what could be a lengthy process to determine how AI will be regulated in the United States and which level of government will have the final say.
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