
Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comClient Alert
Author: Dan Brecher
Date: January 8, 2026

Counsel
212-286-0747 dbrecher@sh-law.com
On December 11, 2025, President Donald J. Trump signed an executive order titled Ensuring a National Policy Framework for Artificial Intelligence (Executive Order). According to the Trump Administration, the goal is to create a uniform federal approach to AI policy and reduce conflicting rules across different states. For businesses operating in the AI industry, the Executive Order likely means more legal uncertainty, at least in the short term.
As with other rapidly evolving technologies, federal and state regulations have failed to keep up with the development and adoption of artificial intelligence. Congress has considered numerous bills addressing AI, but has yet to enact any comprehensive regulatory framework. Instead, federal laws addressing AI have largely focused on the federal government’s research, development, and implementation of AI.
In the absence of comprehensive federal legislation, several states have adopted their own AI laws. According to the National Conference of State Legislatures, as of late April 2025, at least 48 states and Puerto Rico had introduced more than 1,000 bills that include the term AI in the 2025 legislative season. The bills vary in scope, including mentions of AI in broader legislation, the establishment of task forces to study aspects of AI, and requirements for disclosures regarding AI-generated content. California leads the nation in AI regulation, with several key AI laws enacted in late 2024/2025. They include the
Transparency in Frontier AI Act (SB 53), requiring risk reporting; the California AI Transparency Act (AB 316/AB 853), mandating AI detection/watermarking; and the Companion Chatbot Law (SB 243), protecting minors with disclaimers and safety.
President Trump’s Executive Order declares that the United States should sustain and enhance its global AI leadership through a “minimally burdensome national policy framework.” It further aims to limit state-level regulation and consolidate authority at the federal level. Below is a brief summary of several key provisions:
While it doesn’t create any new law, the Trump Administration’s Executive Order on AI lays out where the executive branch believes AI policy should go, and gives federal agencies tools to start shaping regulation accordingly. However, it does not mean an end to the legal uncertainty facing the AI industry.
Instead, the Executive Order will likely be a flashpoint in ongoing AI policy discussions in the months ahead. Given the legal and political debates over state vs. federal authority, it may also be subject to legal challenges, particularly regarding preemption.
Accordingly, AI businesses may proceed for now as if existing state AI laws will not be immediately impacted by the Order and continue their existing compliance plans. At the same time, businesses in the AI industry should continue to closely monitor how states and courts react to the Executive Order’s initiatives in the coming months. Scarinci Hollenbeck attorneys are available to assist with regulatory strategy and compliance planning.
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