Hi, I’m Katie Malone, and this is Innovation Wire by Technical.ly.
On Jan. 1, new laws in states like California, Illinois and Texas went into effect, governing everything from transparency around the data used to train generative AI models to prohibiting employers from using discriminatory AI in hiring.
And now, Trump’s halting them. Or at least trying to.
A December executive order from the president threatened to strip states of key broadband funding if they pursued their own AI regulations.
Some AI boosters say having a patchwork of inconsistent rules could slow innovation and burden US businesses. But in the absence of a federal regulatory framework, states continue to pass laws — especially since it’s unclear whether the executive branch can actually stop them.
In 2025, the number of state AI bill proposals was double that of 2024, with over 1,000 bills introduced across all 50 states, according to Chelsea Canada, a researcher at the National Conference of State Legislatures. More than half of states have already adopted AI-related acts or laws.
Many of those measures would likely remain untouched even if the executive order survives legal challenges. Laws such as Pennsylvania’s ban on AI-generated child sexual abuse material and New York’s requirement that state agencies disclose how they use automated decision-making tools are expected to remain enforceable.
The newer laws in California, Illinois and Texas mentioned above, however, could face closer scrutiny.
Elsewhere, the pressure appears to be having an effect — or at least draining momentum. Colorado’s 2024 Artificial Intelligence Act, which set the bar for governing “high-risk” AI, is now slowing down. The governor has signaled support for a federal pause, and lawmakers have delayed implementation until June 2026.
Maryland’s efforts have also stalled. The state’s AI work group, tasked with shaping future regulation, has yet to fill key seats needed to get started heading into the next legislative session.
Public opinion, meanwhile, is not on the side of delay. Nearly all Americans believe AI should be subject to rules and regulations, according to a Gallup poll conducted in September. A separate Echelon Insights poll of 1,022 registered voters found that nearly three in five oppose a moratorium on state-level AI regulation.
Public support for AI regulation is clear. What’s less certain is whether federal hesitation will curb state action — or simply invite more of it.
Another angle:
“The Trump administration is not removing government from AI regulation; it is concentrating governmental power at the federal level while deploying it through mechanisms — investment, ownership, research funding, immigration controls, and preemption — not typically classified as ‘regulation.’”
Has AI regulation changed how you work or live? Reply and let me know.
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