On December 11, 2025, the White House issued an Executive Order
that marked a significant shift in federal artificial intelligence
(AI) policy. The “Ensuring a National Policy
Framework for Artificial Intelligence Order"
(the Order) aims to establish a unified
national approach to AI regulation by limiting the authority of the
states to enact and enforce individual AI laws. The administration
has positioned this move as necessary to maintain U.S.
competitiveness in the global AI race, arguing that the current
patchwork of state regulations creates excessive compliance burdens
that stifle innovation.
The Order directs multiple federal agencies to take aggressive
action within 90 days to identify, challenge, and potentially
preempt state AI laws deemed inconsistent with federal policy
objectives. Companies operating in the AI space should prepare for
a period of regulatory uncertainty as the federal government and
states embark on a federalism conflict.
