Trump Signs Vague AI Executive Order Blocking State Regulations

President Donald Trump signed an executive order on Thursday that aims to block state AI regulations with the goal of creating a national framework for the tech industry to follow. 

The Ensuring a National Policy Framework for Artificial Intelligence executive order states the tech industry must be "free to innovate without cumbersome regulation" as state regulations are creating a patchwork of laws. The order calls out states like Colorado for demanding AI models account for "ideological bias," which the administration says can lead to "false results" that impact protected groups. The order also says that some state laws regulate beyond state borders, infringing on interstate commerce, which is the domain of the federal government.

The order notes it shall ensure that "children are protected, censorship is prevented, copyrights are respected, and communities are safeguarded." It also states it won't target "lawful state AI laws," which include child safety protections, data center permitting reforms, government procurement, and use of AI, with "other topics as shall be determined." Beyond that, the order is slim on exact details of what the administration would ultimately try to enforce regarding AI. 

The administration will set up an AI litigation task force within the next 30 days with the goal of challenging state laws. Within the next 90 days, Secretary of Commerce Howard Lutnick must publish a report on existing state laws that go against the executive order or violate the First Amendment, as well as any other parts of the Constitution. The order may also withhold broadband development funding from states.

The executive order is a follow-up to the AI Action Plan the president signed over the summer, which slashed regulations and gave the AI industry a longer leash to continue expanding and developing, despite concerns. A Monday Truth Social post by Trump details his thinking regarding AI regulation and global competition.

The White House did not respond to a request for comment.

Don't miss any of our unbiased tech content and lab-based reviews. Add CNET as a preferred Google source.

"On the heels of Congress correctly deciding for the second time not to pass legislation that would ban states from regulating artificial intelligence, the president should recognize that this is a misguided, unpopular, and dangerous policy choice," Travis Hall, director for state engagement at the Center for Democracy & Technology, told CNET in a statement. 

Hall said the states need to be allowed to safeguard their citizens.

"The power to preempt rests firmly with Congress, and no executive order can change that," Hall said. "State lawmakers have an important role to play in protecting their constituents from AI systems that are untrustworthy or unaccountable. They should remain steadfast in responding to the real and documented harms of these systems."

Some advocates, however, feel that clear national regulations are best for the industry.

"China is moving full speed ahead in efforts to replace the US as the home of the next big AI breakthroughs," said Gary Shapiro, CEO and vice chair of the consumer technology association, an industry trade group which also organizes the annual CES conference in Las Vegas. 

"This EO ensures the US can compete, elevating the federal government as the only body equipped to set nationwide guardrails for AI," Shapiro said.

Without evidence, that this order gives the American AI industry the "breathing room to build boldly and responsibly," he said. And that a nationalized framework makes it easier for small businesses and startups.

Congressman Ted Lieu of California posted on X, the social media platform formerly known as Twitter, saying the order is unconstitutional and will be challenged in court. Ultimately, he said he believes executive orders are ineffective and standards must be passed through Congress. 

The report of the new executive order comes as states have been attempting to regulate AI, particularly as the technology infiltrates all aspects of technology and society, with Congress and the Executive Branch seeking to push back. 

Some states have passed laws making it a crime to create sexual images of people without their consent. Others have placed restrictions on insurance companies using AI to approve or deny health care claims. Currently, Congress hasn't passed any legislation regulating AI on a national scale. 

Last month, 35 states and the District of Columbia urged Congress not to block state laws regarding AI regulation, warning of "disastrous consequences." Congress ultimately chose not to interfere earlier this month. Companies, including Google, Meta, OpenAI and Andreessen Horowitz, have been calling for national AI standards rather than litigating across all 50 states.

"This David Sacks-led executive order is a gift for Silicon Valley oligarchs who are using their influence in Washington to shield themselves and their companies from accountability," said Michael Kleinman, head of US policy at the Future of Life Institute, a non-profit that focuses on the risks of AI to humanity. 

"No other industry operates without regulation and oversight, be it drug manufacturers or hair salons; basic safety measures are not just expected, but legally required," Kleinman said. "AI companies, in contrast, operate with impunity. Unregulated AI threatens our children, our communities, our jobs and our future."

Kleinman went on to say, given that the Senate voted against blocking state regulations, with even conservative lawmakers being vocal in their support for local policymakers, there's no democratic mandate for Trump's executive order.

(Disclosure: Ziff Davis, CNET's parent company, in April filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)