Trump's New AI Order Sparks Federal-State Regulatory Battle
The Department of Justice has established an AI Litigation Task Force under the Attorney General to challenge state artificial intelligence laws on the grounds of federal preemption and interstate commerce. Colorado's 'algorithmic discrimination' statute has been identified as an early target of this initiative.
The executive order directs federal agencies to review state AI regulations and consider linking federal funding to compliance with a national AI standard. This approach aims to address the fragmented regulatory landscape created by state-by-state rules, which currently amount to about 100 AI measures enacted across 38 states in 2025, according to the National Conference of State Legislatures. The goal is to create a minimally burdensome national standard to foster innovation and avoid a patchwork of 50 different regimes that can hinder startups.
Reactions to the order have been mixed. Supporters, such as Jessica Melugin, argue that federal preemption is necessary to ensure the United States can effectively compete with China in AI development. On the other hand, critics express concerns about the execution of the order and its potential impact. Ryan Hauser acknowledges the need for federal preemption but cautions that the implementation could undermine progress. The AFL-CIO condemns the executive order as unlawful and chilling to state protections, asserting that it threatens both funding and workers' rights protections. The Center for Democracy and Technology notes that the order may chill state-level oversight and reduce accountability for AI developers.
Experts also warn about potential harms and accountability issues associated with the executive order. Gary Marcus highlights concerns over ties to Silicon Valley and the implications for regulating AI effectively. Overall, the debate centers on balancing the need for a unified regulatory framework with preserving state-level protections and innovation incentives.
