• Atlanta
• Boston
• Dallas
• Ft. Lauderdale
• London
• Minneapolis
• New York
• Oakland
• Philadelphia
• Washington, DC

by Jennifer Gibbs

In a bold shift toward centralized oversight of artificial intelligence (AI), the White House is reportedly preparing an executive order dramatically reducing the regulatory power of individual states and consolidating AI policy at the federal level.

According to a draft executive order titled “Eliminating State Law Obstruction of National AI Policy,” the Department of Justice would establish an AI Litigation Task Force assigned to challenge state AI laws deemed “burdensome, unconstitutional, or interfering with interstate commerce.”

Additionally, federal funding could be withheld from states whose AI regulations conflict with the White House’s goal of establishing a “light-touch” national framework.

Why this matters:

• For businesses and tech innovators, this move promises fewer state laws to navigate and potentially easing the compliance burden and supporting a more unified operating environment.
• For citizens and state advocates, however, it raises red flags about the loss of local safeguards around algorithmic bias, transparency, and consumer protections.

What to watch:

1.  Whether the executive order is signed, and when.
2. How states respond, such as California and Colorado whose AI transparency laws are specifically cited in the draft of the proposed executive order.
3. How advocacy groups and civil-rights organizations react and address constitutional concerns such as free speech, state’s rights, and privacy.

Take-away message:

Whether you support the proposed order or have concerns it could weaken consumer protections, what appears to be unanimous is that this move from the White House could become the most important shift in AI policy to date, and could significantly reshape how businesses, creators, and everyday citizens engage with one the most rapidly-evolving technologies of our time.

_________________________________

The opinions expressed are those of the authors and do not necessarily reflect the views of the firm or its clients. This article is for general information purposes and is not intended to be and should not be taken as legal advice.