President Donald Trump has signed an executive order directing the attorney general to establish an artificial intelligence litigation task force to challenge state AI laws deemed “unconstitutional, preempted, or otherwise unlawful,” which could potentially hinder innovation.
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What Are the Key Provisions of Trump’s New Executive Order on AI?
Under the new EO, the secretary of commerce will evaluate state AI laws for conflicts with national policy priorities and withhold broadband equity access and deployment, or BEAD, funds from any state with conflicting regulations, according to a White House fact sheet published Thursday.
The new directive requires the Federal Trade Commission and the Federal Communications Commission to initiate steps to prevent states from forcing AI companies to mislead consumers. They will assess whether state laws requiring AI models to embed diversity, equity and inclusion cause those companies to breach the Federal Trade Commission Act, and consider creating a federal reporting and disclosure standard for AI systems.
The order also directs the development of a national AI legislative framework to preempt state laws that could stifle innovation.
The EO delivers on the AI Action Plan released by the White House in July. The plan outlines over 90 federal policy actions across three pillars: accelerating AI innovation; building American AI infrastructure; and leading in international AI diplomacy and security. One of the key policies cited in the document is to cut red tape and eliminate regulations that hinder America’s leadership in this critical technology.
What Recommendations Did ITI Offer in Response to OSTP’s AI Reform RFI?
In October, the Information Technology Industry Council submitted detailed recommendations to the White House Office of Science and Technology Policy calling for a coordinated federal framework to strengthen U.S. leadership in AI.
In its response to OSTP’s request for information on AI regulatory reform, ITI highlighted conflicting federal rules, outdated privacy and copyright frameworks, and fragmented state-level AI laws as major obstacles. The group noted that over 1,000 state bills introduced in 2025 have created “regulatory fragmentation” and driven up compliance costs.
ITI urged the administration to work with Congress to establish a unified, risk-based federal AI standard that preempts state regulations and provides clarity for industry.
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