Trump Administration Issues Executive Order to Unify AI Regulation Across States
In an effort to streamline the chaotic landscape of AI regulation, the Trump administration has issued a sweeping executive order. Over the past year, state-level regulations have proliferated, leading to confusion among employers regarding compliance and operational standards. This new directive aims to establish a national framework for AI governance, replacing the current patchwork of 50 differing state laws.
Goals of the Executive Order
- Direct the Commerce Department to identify “onerous” state AI laws and refer select statutes to the Department of Justice for potential challenges.
- Create a DOJ AI Litigation Task Force to contest certain state AI laws deemed unconstitutional or unlawful.
- Utilize federal leverage—particularly through funding mechanisms—to discourage states from enacting unfavorable AI laws.
- Set the stage for actions by the Federal Communications Commission and Federal Trade Commission that could override state-level AI requirements.
- Encourage Congress to enact a federal framework that explicitly preempts state AI regulations.
Employers’ Action Items
- Stay Compliant: Ensure adherence to all current state and local AI laws.
- Inventory AI Tools: Build or update an internal inventory of AI tools used in high-stakes employment decisions such as hiring, promotion, and safety prediction.
- Strengthen AI Governance: Establish data-retention plans, bias testing protocols, and clear vendor documentation.
- Review Vendor Contracts: Ensure that contracts allow for flexibility in the face of changing regulations.
- Monitor Federal Developments: Keep an eye on upcoming milestones, including the DOJ AI Task Force and the Commerce Department’s initiatives.
While the federal government aims to take control of AI regulation, state laws remain in effect until challenged or overridden. Employers must remain vigilant, continuing to comply with existing regulations while preparing for potential changes in the regulatory landscape.
As the discussion around AI governance evolves, the coming months are likely to bring further clarity from the federal government. However, the debate surrounding AI regulation is far from over, and employers will need to stay engaged with the ongoing dialogue.
