Trump's AI executive order could leave start-ups in legal limbo
What's the story
President Donald Trump has signed an executive order directing federal agencies to challenge state laws on artificial intelligence (AI). The move is aimed at providing relief to start-ups from a "patchwork" of regulations. However, legal experts and industry insiders warn that the order may instead create more uncertainty, leading to court battles and leaving young companies grappling with changing state requirements.
Legal challenge
Executive order establishes task force to challenge state laws
The executive order, titled "Ensuring a National Policy Framework for Artificial Intelligence," directs the Department of Justice (DOJ) to form a task force within 30 days. This team will challenge certain state laws on the grounds that AI is interstate commerce and should be federally regulated. The Commerce Department has also been given 90 days to identify "onerous" state AI laws, which could impact states' eligibility for federal funding.
Regulatory exploration
Federal agencies to explore preemptive standards
The executive order also directs the Federal Trade Commission and Federal Communications Commission to explore federal standards that could override state rules. It further instructs the administration to collaborate with Congress on a uniform AI law. This comes as part of a wider effort to curb state-by-state AI regulations after congressional attempts to pause such actions have failed.
Accountability concerns
Critics argue order shields Big Tech from accountability
Critics of the executive order, including Michael Kleinman from the Future of Life Institute, have argued that it protects Silicon Valley giants. They accuse these companies of using their influence in Washington to avoid accountability. Even supporters of a national framework admit that this order doesn't create one. With state laws still enforceable unless courts block them or states pause enforcement, start-ups could face an extended transition period.
Regulatory challenges
Legal battles could complicate AI regulation for start-ups
While some believe the order could reduce uncertainty by centralizing the fight over AI regulation in Washington, others fear that legal battles will create immediate hurdles for start-ups. These companies are already struggling with conflicting state and federal demands. Hart Brown, principal author of Oklahoma governor Kevin Stitt's Task Force on AI and Emerging Technology recommendations, said these programs can be "expensive and time-consuming to meet a very dynamic regulatory environment."
Industry concerns
Uncertainty over self-regulation and open-source standards
Arul Nigam, co-founder at Circuit Breaker Labs, a start-up that performs red-teaming for conversational and mental health AI chatbots, echoed these concerns. He questioned whether AI companion and chatbot companies have to self-regulate or adhere to open-source standards. "There's uncertainty in terms of do [AI companion and chatbot companies] have to self-regulate?" Nigam told TechCrunch.