tech
December 12, 2025
Trump’s AI executive order promises 'one rulebook' — startups may get legal limbo instead
Trump signed an AI executive order targeting state laws and promising one national rulebook. Critics warn it could trigger court battles and prolong uncertainty for startups while Congress debates federal rules.
TL;DR
- President Trump signed an executive order challenging state AI laws, aiming for a unified national framework.
- The order directs task forces to identify and challenge state regulations deemed 'onerous' on the grounds of interstate commerce.
- Critics argue the order could prolong uncertainty and lead to prolonged legal battles for startups.
- Supporters believe centralizing regulatory fights in Washington could reduce uncertainty.
- Concerns are raised that the order could disproportionately harm smaller startups lacking resources to navigate complex regulations.
- Legal ambiguity may increase sales cycles, system work, and insurance costs for AI companies.
- Calls are made for Congress to quickly enact a comprehensive national AI framework.
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