Executive order 14365, signed by President Donald J. Trump on December 11, 2025, sets out a national policy framework intended to cement United States leadership in artificial intelligence and reduce what the administration views as burdensome regulation. The order states that “United States AI companies must be free to innovate without cumbersome regulation” and that “excessive State regulation thwarts this imperative,” framing a federal objective to “sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI.” A central concern identified in the text is a “patchwork of 50 different regulatory regimes” created by state-by-state rules, which the administration argues makes compliance more difficult, particularly for start-ups.
To address this, the order directs the creation of an artificial intelligence Litigation Task Force under the attorney general whose sole responsibility is to challenge state artificial intelligence laws that are inconsistent with the policy of executive order 14365, with a deadline of January 10, 2026 for its formation. By no later than March 11, 2026, the secretary of commerce must publish an evaluation of existing state artificial intelligence laws that “identifies onerous laws that conflict” with the order, including laws that require artificial intelligence models to alter “truthful outputs” or that may compel developers or deployers to disclose information in ways that could violate constitutional protections. The order cites a “new Colorado law banning ‘algorithmic discrimination’” as a potential example, although it notes there is no current pending action against this regulation and that compliance with existing state laws is still required.
Executive order 14365 also uses federal funding and legislative proposals as levers to shape artificial intelligence governance. By no later than March 11, 2026, the secretary of commerce must send a policy notice informing certain states that they are ineligible for funds under the Broadband Equity Access and Deployment (BEAD) Program if they have been identified as having onerous artificial intelligence laws, and within the same period the Federal Communications Commission is required to consider a federal reporting and disclosure standard for artificial intelligence models that could preempt state rules and to issue a policy statement on how 15 U.S.C. 45 applies to artificial intelligence models. Additionally, the special advisor for artificial intelligence and crypto and the assistant to the president for science and technology are tasked with preparing legislative recommendations for a uniform federal policy framework that would preempt conflicting state artificial intelligence laws, while preserving otherwise lawful state rules in areas such as child safety protections, certain infrastructure issues, procurement and use of artificial intelligence by state governments, and other topics to be determined. The article notes that, like former President Joe Biden’s 2023 executive order 14110, this order aims to establish a federal scheme for the development and use of artificial intelligence, but it emphasizes that executive order 14365 does not immediately change any current state law or regulatory requirement and that businesses must continue to comply with existing rules.
For companies deploying artificial intelligence tools in hiring, content creation, and other functions, the article highlights that the emerging federal framework introduces new uncertainty around the interaction between national and state regimes. The authors underscore that the actual impact of executive order 14365 “is yet to be seen,” since many of its provisions depend on future actions by federal agencies and potential legislation. In the interim, businesses are urged to seek competent legal advice to navigate state and federal obligations and to align their artificial intelligence strategies with best practices in a fast-evolving legal environment, with the firm positioning its artificial intelligence attorneys as resources for guidance and compliance planning.
