Will he, won’t he? That has been the question ever since US President Donald Trump floated the idea of banning states from regulating AI on their own. But now, it looks like that has become reality. Trump has signed an executive order that effectively blocks states from creating its own AI regulations. This means that all and any AI regulations will fall onto the federal government.
Trump executive order bans state-based AI regulation
For those who are pro-state based AI regulation, don’t worry. As it stands, the order cannot unilaterally override state AI laws . However, the Trump executive order directs federal agencies to take steps to reduce or eliminate state AI regulations. It also discourages states from passing laws that the federal government might challenge.
This sounds a lot like a proposed executive order we came across last month . It suggested that the federal government could withhold funding for other programs for states that do not comply. However, back then, the Trump administration decided to back down from the executive order . We’re not sure what changed since then that prompted the federal government to go ahead anyway.
Based on this executive order, Commerce Secretary Howard Lutnick is expected in the next 90 days to issue a report. This report will reveal which state laws might be in conflict with the order. It will also determine which states may become ineligible for rural broadband funding from the Broadband Equity Access and Deployment (BEAD) program.
So, what does all this mean?
Basically, what this executive order means is that states will have to defer to the federal government when it comes to AI regulation. Especially if they want to keep funding for certain programs like the one we mentioned earlier. This could affect several plans that are in motion. Namely, dozens of attorney generals from various US states are warning tech companies about “delusional” outputs from AI .
However, this executive order could prevent these states from doing something about it. That is, unless the federal government is in agreement and wants to pursue that. Of course, there’s nothing wrong with the federal government enacting laws and regulations that would apply to all US states.
But some have argued that states enacting their own regulations are more effective and could be implemented faster. However, others are arguing that over-regulation of AI could allow the US to fall behind its rivals, like China.
