From Fragmented to Framework: Executive Order Advances National AI Consistency
President Trump's recent executive order ("EO") on AI targets "patchwork" of state AI laws and prioritizes national AI framework.
On December 11, President Trump signed a new EO called "Ensuring a National Policy Framework for Artificial Intelligence," touting a "national [AI] policy" free of "cumbersome" state AI regulation. The EO notes that a "patchwork" of state AI laws makes compliance difficult, and it takes aim at those that embed "ideological bias" or regulate beyond state borders (potentially implicating Colorado, California, etc.). While a national AI policy is the priority, it will require Congressional action.
The EO specifies a number of tasks on a more immediate timeline, including:
- Creation of an AI Litigation Task Force. Within 30 days of the EO, a task force will be created to challenge state AI laws inconsistent with the policy of "global AI dominance through a minimally burdensome national policy framework for AI."
- Evaluation of State AI Laws. Within 90 days of the EO, the Secretary of Commerce will publish an evaluation identifying "onerous" state AI laws.
- Federal Funding. Within 90 days of the EO, the administration will seek to restrict funding under the Broadband Equity, Access, and Deployment Program, as well as discretionary grants, to target states with burdensome AI laws.
- Standards for AI Development and Use. Within 90 days of the EO, the Federal Trade Commission will issue a policy statement applying the ban on unfair and deceptive acts to AI models. Within 90 days of the published evaluation of state AI laws, the Federal Communications Commission will initiate a proceeding to determine whether to adopt a federal reporting and disclosure standard for AI models that preempts state laws.
- Legislative Recommendations. The EO directs key advisors to recommend legislation for a uniform federal AI framework preempting state AI laws.
Significant activity is expected over the next 30 to 180 days. Stakeholders should stay attuned to opportunities to potentially shape federal law by submitting comments in any rulemaking process or partnering with the government in preemption litigation. Importantly, developers and deployers of AI are still currently subject to applicable state and local AI laws, although they should monitor developments that may relieve them of certain obligations as a result of the EO.