A New Chapter in U.S. AI Policy

On December 11, President Trump signed an executive order outlining the governance of artificial intelligence in the United States. The main goal is straightforward: strengthen U.S. leadership in AI by reducing regulatory friction and moving toward a more consistent national approach.

Currently, many AI regulations are being developed at the state level. The administration argues that having different requirements in every state makes it harder for organizations to comply, slows innovation, and creates uncertainty, especially for companies operating across state lines. This order pushes back against that fragmented approach and signals that AI policy should be more coordinated at the federal level.

The order directs federal agencies to review and, when necessary, challenge state AI laws that are seen as overly burdensome or in conflict with federal priorities. It also lays the groundwork for a future national AI framework that would override certain state laws while still allowing states to regulate in areas like child safety, public-sector use of AI, and infrastructure.

What This Means for Organizations

If your organization uses AI (or plans to), this matters.

First, the rules may change. State-level AI laws you’ve been tracking could be challenged or replaced by federal standards over time. That doesn’t mean compliance goes away, but it does mean the landscape is shifting.

Second, transparency and accountability are still expected. The order highlights concerns around truthful outputs, disclosures, and responsible use. Organizations will still need to understand how their AI systems work, who is responsible for them, and how decisions are reviewed.

Finally, this reinforces the value of being prepared. Organizations that know what AI tools they’re using, how they’re being applied, and how oversight is handled will be in a much stronger position as policies continue to evolve.

At The AI Shift, we see this as a reminder that AI readiness isn’t about reacting to new rules; it’s about building clear, practical processes that can adapt as those rules change. If you’re reviewing your current AI use or planning next steps, we’re always happy to be a resource.