California Faces Outsized Impact as Trump Issues New Order Rolling Back AI Regulation

President Trump enacted an executive order today aimed at deterring state governments from implementing regulations on artificial intelligence while urging Congress to pass a law that would supersede such regulations. This initiative is expected to particularly impact California, a state that has enacted more AI regulations than any other since 2016, according to a recent Stanford report. The state is also home to renowned AI companies like Anthropic, Google, Nvidia, and OpenAI. The order mandates heads of federal agencies, including the FCC and FTC, to contest state AI regulations. It also proposes the creation of model AI legislation to override state laws unless they specifically address children's safety or other critical areas. Federal agencies are instructed to investigate funding restrictions for states that persist in regulating AI, challenging California’s potential $1.8 billion broadband funding. While Trump argues that the order旨在 safeguard America’s competitive edge, critics assert it jeopardizes vital protections against AI's inherent risks.