Consistent with their broader policy differences, the Trump and Biden administrations can be characterized by their notably divergent approaches to regulating artificial intelligence (AI). Indeed, a recent White House publication underscores how the Trump administration has reoriented AI policy, highlighting a significant shift in priorities and deregulation compared to the Biden era. On July 23, 2025, the White House published “Winning the Race: America’s AI Action Plan” (the AI Action Plan), which centers on three key pillars: innovation, infrastructure and international diplomacy and security.

Federal AI Policy Continues to Develop

The AI Action Plan was published exactly six months after the issuance of Executive Order No. 14179, “Removing Barriers to American Leadership in Artificial Intelligence,” an initiative to maintain global leadership in AI. The release of the AI Action Plan comes on the heels of the recent passage of the One Big Beautiful Bill Act (OBBBA), a sweeping legislative package addressing a wide range of policy areas. Signed into law on July 4, 2025, the OBBBA notably excluded a heavily debated provision that would have imposed a 10-year federal moratorium on state-level AI regulation.

Though the AI Action Plan makes no specific mention of this moratorium, it implicitly revives the concept in spirit, noting that “AI-related Federal funding” should not be directed toward “states with burdensome AI regulations that waste these funds.”[1] Though the AI Action Plan further caveats that the federal government should not “interfere with states’ rights to pass prudent laws that are not unduly restrictive to innovation[,]” its emphasis on deregulation echoes throughout the 28-page document.[2] Its message is clear: “[t]o maintain global leadership in AI, America’s private sector must be unencumbered by bureaucratic red tape.”[3]

The Trump administration has taken a significantly different approach to AI governance compared to the Biden administration. Whereas the current administration emphasizes a pro-industry, deregulatory framework, the Biden administration pursued a robust regulatory strategy to govern AI. With Executive Order No. 14110, “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” the prior administration sought to meet its goal of making AI “safe and secure” by implementing “policies, institutions, and, as appropriate, other mechanisms to test, understand, and mitigate risks from [AI] systems before they are put to use.”[4] The current administration’s aforementioned Executive Order No. 14179 signaled a marked shift in policy, “revok[ing] certain existing AI policies and directives that act as barriers to American AI innovation, clearing a path for the United States to act decisively to retain global leadership in artificial intelligence.”[5] Stating that the prior Executive Order No. 14110 “foreshadowed an onerous regulatory regime,” the AI Action Plan recommends a number of policy actions, one of which requires the Federal Communications Commission (FCC) to “evaluate whether state AI regulations interfere with the agency’s ability to carry out its obligations and authorities under the Communications Act of 1934.”[6]

State-Level AI Regulatory Trends

The AI Action Plan may signal that states need to reevaluate their regulatory regimes; however, despite the recent shift toward deregulation of AI at the federal level, state governments have maintained and intensified their regulatory activities around AI, continuing trends established under the Biden administration. So far in the 2025 legislative session, all 50 states, Puerto Rico and Washington, DC, have introduced legislation related to AI; while at least 38 states have adopted or enacted AI measures.[7] In 2024, state legislatures introduced nearly 700 AI-related bills, with 31 states successfully enacting laws or formal resolutions concerning AI regulation.[8]

These state-level initiatives cover a wide range of issues and industries, which reflect substantial and diverse approaches to AI governance. For example, Colorado’s enactment of a comprehensive AI law mandated that developers of “high-risk” AI systems exercise reasonable care to prevent algorithmic bias and disclose the use of AI technologies to consumers.[9] Similarly, California, a state that has been aggressive in its AI regulation, approved a package of bills addressing transparency in generative AI services and deepfake technologies, though some of those bills were vetoed by Governor Newsom.[10] And just a few weeks ago, Texas Governor Greg Abbott signed into law the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which will take effect on January 1, 2026.[11] Other states, including New York, Illinois, Maryland, Tennessee and New Hampshire, have also implemented varied regulations aimed at addressing transparency, privacy, fairness and accountability in AI applications.[12] Currently, approximately 1,000 AI-related bills are pending across the country, spanning numerous sectors and regulatory approaches.[13]

Looking Ahead: Balancing Innovation and Oversight

The AI Action Plan reflects a decisive federal preference for deregulation, encouraging private sector leadership and discouraging restrictive state policies through indirect means, such as funding disincentives. However, the ongoing surge of state legislative activity at the state level highlights a growing divergence in regulatory philosophy. Whether this divide results in a patchwork of inconsistent AI standards, increased federal preemption efforts, or a new cooperative governance model will be a defining issue for policymakers and stakeholders in the coming year. Questions of jurisdiction, and the broader challenge of balancing innovation with oversight, are becoming increasingly urgent.

Notable Dates

• October 30, 2023: Executive Order No. 14110 issued (“Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”)
• January 23, 2025: Executive Order No. 14179 issued (“Removing Barriers to American Leadership in Artificial Intelligence”)
• July 4, 2025: OBBBA signed (without moratorium on state AI regulation)
• July 23, 2025: The AI Action Plan published

[1] AI Action Plan at p. 3.

[2] Id.

[3] Id.

[4] 88 Fed. Reg. 75191 (Nov. 1, 2023).

[5] 90 Fed. Reg. 8741 (Jan. 31, 2025).

[6] AI Action Plan at p. 3.

[7] “Artificial Intelligence 2025 Legislation,” National Conference of State Legislatures (NCSL) (updated July 10, 2025).

[8] Josh Hansen and Camila Tobon, “Year in Review: Privacy Compliance and Artificial Intelligence Developments,” JD Supra (Dec. 18, 2024).

[9] Id.

[10] Id.

[11] Tex. H.B. 149 (NS) (June 22, 2025).

[12] Josh Hansen and Camila Tobon, “Year in Review: Privacy Compliance and Artificial Intelligence Developments,” JD Supra (Dec. 18, 2024).

[13]“Artificial Intelligence 2025 Legislation,” National Conference of State Legislatures (NCSL) (updated July 10, 2025).