States press AI rules despite Trump warning

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2–3 minutes

Summary

States kept advancing AI laws on chatbots, hiring, and safety despite Trump’s warning against state regulation.

Why this matters

With Congress still lacking a national AI law, states are setting rules that could shape how AI affects jobs, children, consumer protections, and digital content. The split also highlights an ongoing federal-state fight over who will govern fast-moving technology.

Six months after President Donald Trump warned states not to regulate artificial intelligence, states continued advancing their own AI laws as Congress remained stalled on federal rules.

Lawmakers have shifted from broader proposals that governors had vetoed or blocked as too burdensome to narrower measures focused on how people encounter AI in daily life. Those efforts included rules for chatbots, hiring tools, and safeguards for advanced AI models.

Trump made AI a national and economic security priority and said a patchwork of state laws could hinder an industry competing with China. His executive order directed the attorney general to form a task force to challenge state laws deemed more than “minimally burdensome,” told the Commerce Department to identify problematic regulations, and threatened limits on some federal funding for states with AI laws.

The White House said it would not target laws aimed at preventing fraud or protecting consumers and children. It later urged Congress to override state AI laws that conflict with its policy approach and to pass protections for children, intellectual property rights, and free speech. A recent bipartisan House draft drew strong criticism from Democrats and Republicans.

The administration has not indicated that it has sued any state over an AI law or withheld funding. In a statement, the White House said it was “eager to work with partners” to enact its framework.

In Illinois, lawmakers sent Democratic Gov. JB Pritzker a bill based partly on laws in California and New York requiring developers of large AI models to adopt protocols against catastrophic harms, such as a biological weapons attack, major power outage, or large-scale hack. Illinois also would require an independent audit of whether companies follow their own policies. State Rep. Nicolle Grasse Edly-Allen said, “I don’t know if you’ve met Illinois, but we’re pretty independent.”

States including Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon passed laws this year restricting how AI chatbots interact with people, especially children. Several states also required users to be told when they are interacting with AI.

Colorado required disclosures when AI is used in decisions involving employment, education, housing, or banking. Connecticut required employers using AI systems in hiring or employment decisions to notify workers or applicants. Connecticut, Washington, and Utah also required AI developers to embed data showing whether digital content was created or altered by AI.

In California, lawmakers were advancing bills to limit employers’ reliance on AI in firing or discipline and to expand chatbot regulation for children. In Utah, a bill modeled on New York and California laws stalled after the White House told lawmakers it was “categorically opposed” to the measure.

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