Showdown: New Executive Order Puts Federal Government and States on a Collision Course Over AI Regulation

Last week, the White House issued a new executive order (EO) seeking to limit states’ regulation of artificial intelligence (AI) and instead create a uniform national AI policy. The EO does not preempt state AI laws, but it mobilizes federal agencies to take actions that may curtail state efforts to enforce their laws and regulate AI.

The EO directs the Justice Department to create a task force to challenge state AI laws it deems unconstitutional or preempted by federal authority; the Commerce Department must identify “onerous” state AI laws and may recommend withholding broadband and infrastructure funds from such states; the Federal Trade Commission and Federal Communications Commission will clarify how their authorities preempt state AI laws; and the White House will draft legislation proposing a uniform federal AI framework, while preserving state authority in areas like child safety, data centers and AI procurement. The EO creates uncertainty for states that have enacted comprehensive AI laws and even less certainty with respect to the enforcement of preexisting legal regimes.

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