President Donald Trump issued an executive order Thursday aimed at pressuring states to hold back on regulating artificial intelligence.
Trump and several Republicans warn that the handful of state regulations already in place—and those that could come next—threaten to stifle innovation and slow the growth of the tech industry.
Critics across the political spectrum—including civil liberties and consumer rights groups—warn that blocking state regulations would hand a major advantage to big AI companies, which operate with minimal oversight, and argue that Trump’s move may overstep the bounds of presidential authority.
Here’s what you need to know about state AI regulations—and the executive order Trump just signed.
Which AI rules states have in place—and why they matter
So far, four states—Colorado, California, Utah, and Texas—have jumped ahead with laws that start to lay down the rules for AI in the private sector, according to the International Association of Privacy Professionals.
These laws aim to curb how much personal information companies can gather and force them to be more transparent about what they do with it.
These laws are a direct response to AI that’s already woven into our daily lives. The technology shapes major decisions—who gets a job interview, a home loan, or even certain medical treatments. But studies show it’s far from perfect, often making mistakes that favor one gender or race over another.
“With a human, I can say, ‘Hey, explain, how did you come to that conclusion, what factors did you consider?'” said Calli Schroeder, director of the AI & Human Rights Program at the public interest group EPIC. “With an AI, I can’t ask any of that, and I can’t find that out. And frankly, half the time the programmers of the AI couldn’t answer that question.”
Some states are pushing even further, proposing AI rules that would force companies to be transparent and actively check whether their programs could discriminate.
Beyond these broader rules, many states are tackling specific AI issues: banning deepfakes in elections or nonconsensual porn, and setting limits on how the government can use the technology.
What the Executive Order Aims to Achieve—and Why It Matters
The executive order tells federal agencies to pinpoint state AI regulations that could get in the way—and push back by threatening to withhold federal funds, like for broadband, or by taking the states to court.
It would also kick off a nationwide effort to create a lighter, more flexible AI regulatory framework—one that could trump state-level laws.
It doesn’t aim to override certain state laws, like AI rules protecting children or guidelines on how state governments can adopt and use AI—but it could reshape the bigger picture.
Trump claims that a patchwork of regulations across all 50 states is stifling AI companies’ growth—and giving China a chance to close the gap in the AI race. He’s also warned that state rules are creating what he calls "Woke AI."
What’s fueling the controversy around this order?
Consumer rights and tech watchdogs are raising the alarm on Trump’s executive order, warning it gives Big Tech "to operate in a vacuum of accountability," as the nonprofit Issue One put it.
"After spending millions of dollars on lobbying — including massive donations for the new White House ballroom — Big Tech has successfully leveraged those around the president to pass a federal moratorium that aims to wipe out bipartisan AI safeguards passed in both blue and red states," said Liana Keesing, Issue One’s policy lead for technology reform. She added that AI-driven scams and discriminatory price-fixing are just a few of the harms these state laws aim to prevent.
Children’s advocacy groups are raising alarms about the generations growing up in a world dominated by AI.
“A generation of parents watched their kids become the collateral damage of our failure to regulate social media, and now this moratorium threatens to repeat that tragedy with AI,” said Shelby Knox, director of online safety campaigns at ParentsTogether Action.
Where does the executive order go from here?
Don’t be surprised if this lands in a courtroom showdown.
Last month, while the order was still in draft, Colorado Attorney General Phil Weiser warned congressional leaders in a letter that the state would take legal action if it were signed.
On Thursday, California state Sen. Scott Wiener—the author of this year’s AI safety bill in the state—said in a statement: “If the Trump Administration tries to enforce this ridiculous order, we will see them in court.”
In Connecticut, Democratic Senate President Pro Tempore Martin Looney said Friday that the state plans to move forward with sweeping AI regulations, regardless of the executive order.
In May, attorneys general from 40 states and territories—both Republicans and Democrats—sent a letter to congressional leaders urging them not to approve a provision that would block state AI regulation for the next 10 years.
Shatorah Roberson, senior policy counsel at the Lawyers’ Committee for Civil Rights Under Law, says it’s clear the president doesn’t have the authority to override state laws in this case.
“This is an issue of our democracy and the president through executive order can’t just preempt state laws without going through the democratic process,” she said.
