state laws AI News & Updates

Trump Administration Executive Order Seeks Federal Preemption of State AI Laws, Creating Legal Uncertainty for Startups

President Trump signed an executive order directing federal agencies to challenge state AI laws and establish a national framework, arguing that the current state-by-state patchwork creates burdens for startups. The order directs the DOJ to create a task force to challenge state laws, instructs the Commerce Department to compile a list of "onerous" state regulations, and asks federal agencies to explore preemptive standards. Legal experts warn the order will create prolonged legal battles and uncertainty rather than immediate clarity, potentially harming startups more than the current patchwork while favoring large tech companies that can absorb legal risks.