The great AI regulation debate: state or federal?

Last week, President Trump signed an executive order seeking to solve the main question on lawmakers’ minds when it comes to AI: should it be regulated by states, or at the federal level?

Trump’s executive order calls for “a minimally burdensome national standard — not 50 discordant State ones” when it comes to regulating AI, though it doesn’t specify what that national standard should be.

• It authorizes the AG to sue states over any AI restrictions deemed too burdensome, and also instructs federal regulators to withhold broadband project funding from any states with such laws.
• White House AI czar David Sacks said the Trump admin will target the “most onerous examples of state regulation,” and won’t push back on efforts like child safety.

However…The order has drawn backlash from Democrats and a handful of Republicans who say states should be able to enact their own AI regulations. Congress already voted down two previous attempts to pass a similar moratorium on state AI laws in the past six months.

The arguments

Many experts and policymakers from both sides of the political aisle have come out in favor of a single national standard for AI regulation.

• They argue that making companies follow a patchwork of laws from 50 different states would create an impossible compliance environment, and force national AI firms to follow the strictest state regulator to avoid being sued.
• In their view, this would harm America’s ability to compete against China on AI development, and also make it harder for startups to take on established companies.

On the flip side…The idea of preventing states from enacting AI regulations has drawn opposition from many Democrats, as well as prominent Republicans like Florida Gov. Ron DeSantis and former White House chief strategist Steve Bannon.

Critics of the move stress the need for common-sense AI guardrails like data privacy, parental controls, and consumer protections—and argue that in the absence of any such federal laws or regulations related to AI, states should have the ability to protect their own citizens from the technology’s potential dangers.

Looking ahead…Trump’s executive order is likely to be challenged in court by states on the grounds that only Congress has the authority to override state laws, legal experts say.

📊 Flash poll: In your opinion, should AI regulation be handled at a federal level, or be left up to the states?

• Federal level
• State level
• Unsure/other