Former President Donald Trump is contemplating a more direct approach to regulating artificial intelligence (AI) amid stalled efforts to block state-level regulations. A leaked draft executive order highlights his concern for the risk of states rushing ahead to develop their own AI regulation. This decision casts renewed light on the often contentious battles between federal and state powers in the rapidly evolving technological space.
Those talks about a federal prohibition on state AI preemptions, we hear, are currently on hold for the time being. House Minority Whip Steve Scalise made the case that the annual defense bill was simply not the right vehicle for such controversial provisions. He noted that Trump had previously called for introducing a ban as a standalone bill, indicating that the administration is still exploring various legislative avenues.
Earlier this year, Republican lawmakers in Congress tried to enact a ten-year halt on all new state AI legislation. This step was included in Trump’s overall tax and spending package. This dangerous proposal was appropriately booed off stage soon after it was introduced. Just months later, the administration tried to stop states from setting their own rules.
Silicon Valley’s support for this legislation has been fierce, primarily as a means of stopping states from enacting their own AI regulations. Industry leaders argue that a patchwork of state rules could hinder innovation and complicate compliance for tech companies operating across multiple jurisdictions. The argument is that, if there’s no unifying federal structure, it would be an incredible burden for companies to deal with the patchwork of state laws.
Efforts to insert a nationwide ban on state AI regulations into the annual defense appropriations bill have faced strong, bipartisan backlash. Lawmakers on both sides of the aisle raised concerns over passing such far-reaching measures in the national defense bill. The push to include this ban has been rejected, throwing the future of AI regulation into confusion.
Even the Trump administration seems to be taking a second look. Perhaps not surprisingly, it appears they would not actively oppose regulations on AI at the state level. This dramatic pivot comes at a time when the race to regulate AI is heating up. It showcases the federal-state tug-of-war that has defined this important national technology sector.
