AI Regulation: Federal vs. State

AI Regulation: Federal vs. State

28 November 2025

A battle is brewing over who gets to regulate AI in the US: the federal government or individual states. With over a thousand AI-related legislative proposals floated this year, state activity has outpaced federal efforts, leading to a patchwork of differing regulations. This has sparked concerns among federal lawmakers and the tech industry, who argue that a lack of uniform standards could hinder innovation and create compliance nightmares.

The White House is considering an executive order to preempt state AI laws, aiming for a national policy framework. This would involve establishing an AI Litigation Task Force to challenge state laws deemed unconstitutional or conflicting with federal regulations. The Commerce Secretary would also evaluate state AI laws, potentially restricting funding for states with AI laws considered inconsistent.

While some argue that federal preemption is necessary to maintain US leadership in AI, others worry about undermining state regulatory authority and public safeguards. Concerns exist regarding specific harms like fraud and discrimination if state laws are overridden. Finding a balance between federal oversight and state-level innovation remains a key challenge in the evolving AI regulatory landscape.

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Published on 28 November 2025
airegulationfederalismpolicytechnology
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AI Regulation: Federal vs. State