Trump weighs AI order targeting state laws with lawsuits and broadband funding threats

U.S. President Donald Trump is weighing an executive order that would put Washington on a collision course with states over how artificial intelligence is regulated, according to a draft seen by Reuters.

We had the heads up to this yesterday:

• Trump pumps AI investment, making US economy hottest in world. Regulation tho, hot or not?

Under the proposal, Trump would direct Attorney General Pam Bondi to set up an “AI Litigation Task Force” dedicated to challenging state-level AI rules in court:

• The task force would argue that certain state laws improperly regulate interstate commerce, are preempted by existing federal rules, or are otherwise unconstitutional.
• It would instruct the Commerce Department to review state AI-related laws and issue guidance that could withhold some federal broadband funding from states whose regulations are deemed to conflict with federal priorities.

If implemented, the order would mark one of the most aggressive federal pushes yet to assert Washington’s primacy over AI policy, signalling that the White House wants tighter central control over how new rules governing AI are written and enforced.

—

While details are still in draft, a federal push to override state AI rules could eventually create a more uniform regulatory environment for tech and AI firms, but may also trigger legal uncertainty and prolonged litigation in the near term.

This article was written by Eamonn Sheridan at investinglive.com.