What CX Leaders Need to Consider as the AI Regulatory Landscape Evolves
President Donald Trump’s executive order aimed at limiting the reach of state AI laws may give customer experience (CX) leaders more confidence to scale the technology, but it does not eliminate regulatory risk or governance requirements.
The order, signed in December, directs federal agencies to evaluate and, if necessary, challenge state AI laws that conflict with a national policy framework. While the administration frames the move as a way to reduce regulatory fragmentation, the order reshapes direction rather than replacing existing requirements, according to Shawn Helms, partner at McDermott Will & Schulte and co-head of the firm’s technology transactions and outsourcing practice.
“The EO signals intent, not preemption,” Helms said. “The EO does not preempt state law. And the order does not itself create new AI compliance obligations, but reshapes the regulatory direction and enforcement posture.”
Navigating a Patchwork of State AI Rules
For CX organizations navigating a patchwork of state AI rules, that distinction matters, as the order may encourage broader AI deployment across customer support and marketing, while shifting attention toward future federal standards.
“From an operational standpoint, a robust federal framework could simplify AI compliance for organizations deploying AI across multiple states, reducing the compliance complexity that has challenged CX teams,” said Akanksha Ray, director of global policy at Credo AI.
That consistency may also remove specific guardrails that state regulations had established around automated decision-making, data handling, and bias mitigation.
“This shift means organizations would need to anticipate where voluntary best practices should exceed baseline federal requirements,” Ray said.
Ongoing State Regulations
State AI laws remain fully operative during this transitional period and may be contested in court, selectively enforced, or politically deprioritized, said Peter Stockburger, office managing partner and head of the U.S. AI team at Dentons. So, companies still need to comply carefully with existing regulations, particularly in areas affecting minors, education, and public services.
“CX teams cannot assume immediate relief or blanket preemption,” Stockburger said.
Stronger Internal Governance Frameworks
As a result, CX leaders can no longer rely on regulation to define responsible AI use. “The net effect is that CX leaders need stronger internal governance frameworks rather than relying on a constantly shifting regulatory goalpost,” Ray said.
