US States Advance AI Regulation Despite Federal Warnings

Republican and Democratic lawmakers in several U.S. states are proceeding with artificial intelligence (AI) regulation, despite President Donald Trump's warning six months prior against such actions.

States including Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon have passed AI-related legislation this year. This state-level movement comes as federal efforts to regulate AI in Congress have stalled.

State lawmakers have shifted from earlier, broader regulatory attempts that were often vetoed or derailed due to concerns about being too onerous on industry development. Their current focus is on more targeted legislation, addressing areas where Americans interact with AI, such as how chatbots engage with children, AI systems' use in employment, and developer responsibilities in preventing AI-caused incidents.

President Trump had previously stated that allowing states to create a fragmented regulatory landscape for the AI industry posed a risk to the U.S. in its competition with China for AI supremacy. He designated AI a top national and economic security priority and issued an executive order directing the attorney general to form a task force to challenge state laws deemed "minimally burdensome." The order also instructed the Commerce Department to list problematic regulations and threatened to restrict funding from broadband deployment and other grant programs to states with AI laws. The White House indicated it would not target state laws focused on preventing fraud and protecting consumers and children.

Trump's administration also released a "national policy framework," urging Congress to preempt state AI laws that diverge from its regulatory perspective and to legislate protections for children, intellectual property, and free speech. His move to restrict state actions drew criticism from members of both political parties, as well as civil liberties and consumer rights groups, who worried it would benefit AI giants by limiting oversight. To date, the White House has not acted on its threat to enforce the executive order through court challenges or funding withholdings, stating it is "eager to work with partners" on its policy framework.

Justine Gluck, policy director of the Future of Privacy Forum, a nonprofit advocating for data privacy in technology, noted that more AI bills have been introduced this year than last, including by Republican legislators. In Illinois, a bill awaiting Democratic Governor JB Pritzker's signature builds on elements of laws enacted last year in California and New York. This legislation requires developers of large advanced AI models to establish protocols to prevent catastrophic events, such as biological weapon attacks, power outages, or large-scale hacks. The Illinois bill adds a requirement for AI developers to engage an independent auditor to review their compliance with these policies, a step analysts view as moving toward greater accountability for AI products. Democratic state Senator Mary Edly-Allen, the bill's sponsor, dismissed Trump's warning, stating, "I don’t know if you’ve met Illinois, but we’re pretty independent." The bill garnered nearly unanimous support, indicating bipartisan willingness to address AI regulation.

According to Fortune, the increasing state-level AI regulation highlights a growing trend of legislative action in the absence of comprehensive federal policy.