AI Executive Order May Not Stop States: Goodwin Lawyers
The White House's executive order barring state regulation of AI (see 2512110068) isn't likely to stop states, Goodwin AI and data lawyers wrote last week. The order directs federal agencies to condition access to discretionary grants on a state's commitment not to enforce "onerous" AI laws, but it gives scant guidance on which state laws are onerous and conflict with the administration's policy principles, the lawyers argued.
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The order is likely to face legal challenges, and businesses should continue to prepare for state AI regulation, they added. Without federal AI legislation, it's also not clear that the U.S. government can preempt state laws, they said. In addition, the order's use of funding mandates, such as the threat to withdraw BEAD broadband funding, could lead to political opposition even from Republicans. "Some of the states at the vanguard of AI regulation are solidly red states, such as Texas, Utah, Montana and others."