Trump Shakes the Artificial Intelligence Market With a Single Signature

According to Rokna, citing The Verge, U.S. President Donald Trump has signed a new executive order aimed at challenging state-level artificial intelligence regulations. Many legal experts and technology advocates warn that the order not only fails to resolve existing problems, but could also usher in a prolonged period of legal uncertainty for startups and emerging companies.

The new directive, titled “Ensuring a National Policy Framework for Artificial Intelligence,” instructs the Department of Justice to establish a task force within 30 days to challenge state AI laws, arguing that artificial intelligence falls under the category of “interstate commerce” and therefore should be regulated at the federal level. In addition, the Department of Commerce has been given 90 days to compile a list of state laws deemed “burdensome and restrictive,” a list that could ultimately affect the allocation of federal funding to certain states.

The executive order also calls on the Federal Trade Commission and the Federal Communications Commission to examine the possibility of creating nationwide standards. If adopted, such standards could replace existing state regulations. The administration has also urged Congress to take action to draft a single, comprehensive national law.

This executive order comes at a time when congressional efforts to block state-level AI regulations have reached a stalemate. Lawmakers from both parties have stated that without a nationwide law, preventing states from acting could leave consumers vulnerable to the risks posed by artificial intelligence.

Supporters of a unified federal policy acknowledge that the executive order itself does not establish a national framework. Until courts rule on the validity of state laws, startups will still be required to comply with a patchwork of state regulations while awaiting a potential agreement in Congress.

In the absence of federal legislation, individual states have enacted their own rules: California has focused on privacy, Colorado on algorithmic transparency, and Utah and Texas on responsible innovation frameworks. These regulatory differences have caused confusion for companies, while pressure from major technology firms has intensified calls for legal uniformity.

Since 2023, several AI-related bills have been introduced in Congress, but partisan disagreements have prevented any from becoming law. As a result, the federal government has turned to executive orders—an instrument with limited power and one that remains vulnerable to legal challenges.