President Trump’s Executive Order on Artificial Intelligence

On December 11, 2025, President Trump made headlines by signing an Executive Order titled “Ensuring a National Policy Framework for Artificial Intelligence.” This landmark Order represents the most robust federal initiative aimed at countering state and local regulations surrounding AI. It targets legislation that governs how artificial intelligence is developed, deployed, and utilized within business and employment contexts, ultimately striving for a unified national approach.

Understanding the Order’s Purpose

For employers and business leaders, this Executive Order serves more as a directional signal than a definitive change in the legal landscape. It does not eliminate existing regulatory obligations or lessen compliance risks. Instead, it foreshadows how the federal government aims to shape the future of AI regulation and enforcement. This framework sets the stage for potential legal confrontations, agency actions, and forthcoming federal legislation, reflecting a proactive approach to oversee AI’s rapid evolution.

Key Features of the Executive Order

Actions the Executive Order Takes

The Order initiates a cohesive federal strategy aimed at addressing what the administration perceives as an overly fragmented state-by-state approach to AI regulation. Here are some of the significant directives it includes:

1. Establishment of an AI Litigation Task Force: The Department of Justice will create this Task Force specifically focused on challenging state AI laws perceived as hindrances to innovation or improperly regulating interstate commerce.

2. Identification of “Onerous” State AI Laws: The Department of Commerce is tasked with publicly evaluating state laws that may impose undue burdens, particularly those that alter truthful outputs or impose potentially unconstitutional disclosure obligations.

3. Conditioning Federal Funding: States may see their access to certain federal funding programs subject to their regulatory frameworks on AI, encouraging them to align with federal preferences.

4. Exploration of Federal Consumer Protection Standards: Agencies like the Federal Trade Commission and Federal Communications Commission will dive into establishing federal standards for AI disclosures and consumer protection.

5. Development of a Uniform National AI Framework: The Order calls for federal legislation to establish a standardized approach to AI regulation while allowing states to maintain authority over areas such as child safety and procurement.

These initiatives signal a strong federal inclination for fewer state-specific mandates in favor of enhanced federal enforcement and oversight.

Restrictions of the Executive Order

It’s equally crucial to understand what this Executive Order does not encompass. Specifically:

• The Order does not repeal existing state or local AI regulations.
• It fails to establish a comprehensive federal compliance mechanism for AI.
• It does not automatically negate state regulations; such preemption can only come from congressional action.
• Employers are not shielded from legal actions or litigation related to AI applications.

Current state and local AI laws continue to hold weight and are enforceable.

Anticipated Effects on State AI Regulations

In the short run, the Executive Order is unlikely to yield immediate clarity or uniformity across states. Rather, it could amplify legal uncertainties. States with established AI-specific laws have shown commitment to defending these statutes, and numerous states continue to introduce new legislation. The government’s reliance on agency actions and potential litigation means that any resolution will take time and likely encounter constitutional and federalism challenges.

Even with possible adjustments to some state statues, it is improbable that states will withdraw from AI oversight entirely. Instead, oversight is likely to persist through established legal frameworks such as employment discrimination laws, privacy protections, and consumer safeguards.

For employers, this means that AI-related risks remain prevalent; they are simply transforming rather than disappearing.

The Importance of Best Practices

While comprehensive federal AI legislation is still forthcoming, a clear trajectory is emerging. Regulators, lawmakers, and courts are increasingly concerned with similar core themes, particularly regarding AI’s impact on employment and economic opportunities. Key themes include accountability, transparency, robust documentation, and meaningful human oversight.

Proposed federal initiatives, like the No Robot Bosses Act, reflect these evolving expectations and draw upon principles found in state laws as well as international frameworks like the European Union’s AI Act. In light of global developments, especially in Europe, greater anticipation is placed on employers to understand and navigate the implications of AI in workforce decisions.

Patience for a settled regulatory environment is no longer a feasible strategy. Best practices are taking shape now and are becoming more consistent across various jurisdictions. Employers aligning themselves with these emerging practices will be better equipped to manage the existing regulatory patchwork and adapt as new rules arise.

Practical Steps for Employers

In light of the Executive Order and the broader regulatory context, employers and business leaders should consider taking several actionable steps:

1. Assess AI Usage: Organizations should clarify how AI is being utilized, particularly in hiring, promotions, performance reviews, and other critical employment processes, including third-party tools.

2. Evaluate Governance and Oversight: For AI applications that significantly affect employment outcomes, it’s essential to establish a process for human review, clearly document decision-making, and allow for the capability to challenge or override automated results.

3. Clarify AI Communication: The internal and external description of AI capabilities should be accurate, supportable, and consistent with actual functions, ensuring statements about fairness, accuracy, and bias mitigation reflect reality.

4. Review Vendor Contracts: Organizations should revisit procurement practices to address AI-specific risks. Contracts must include clauses on testing, documentation, audit rights, incident responses, and liability allocations.

5. Ongoing Monitoring of Developments: Business leaders should actively track both federal and state-level regulatory changes without waiting for resolution. By acting promptly, organizations will avoid falling behind in governance efforts and litigation preparedness.

By implementing these steps, employers can position themselves favorably to navigate the evolving landscape where AI governance merges with employment law and enterprise risk management.

Contact Information

For inquiries regarding President Trump’s AI Executive Order or for personalized legal guidance, please reach out to Sam Mitchell or your Husch Blackwell attorney.