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ARTICLE · 21 JANUARY 2026

What To Expect In AI Regulation In 2026

Ballard Spahr LLP
Ballard Spahr LLP
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Ballard Spahr LLP

Ballard Spahr LLP

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The past year set up a clear clash between federal deregulatory efforts and state-level AI rulemaking, and 2026 is poised to be the year that conflict materializes...

United StatesTechnology
Mudasar Khan
Mudasar Khan
Gregory Szewczyk
Gregory Szewczyk
Parisa Zarelli
Parisa Zarelli
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The past year set up a clear clash between federal deregulatory efforts and state-level AI rulemaking, and 2026 is poised to be the year that conflict materializes in earnest. The Trump Administration signaled a strong preference for scaling back AI-specific rules while exploring avenues to preempt state and local measures, even as a growing number of states moved forward with their own frameworks. In short, 2025 laid the groundwork, and 2026 is likely to deliver the confrontation.

On the federal side, the Administration's posture included both legislative and policy initiatives aimed at limiting state restrictions on AI. Although a proposed 10-year moratorium on enforcing state AI laws was removed during negotiations over the One Big Beautiful Bill Act, the America's AI Action Plan soon followed, instructing agencies to consider using preemption to curb “burdensome” state AI regulations. In the final weeks of 2025, the White House issued an executive order, Ensuring

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