States Proceed with AI Regulations Despite Trump’s Opposition

Despite a warning from President Donald Trump earlier this year urging states to avoid regulating AI, state lawmakers across the country are continuing to pursue their own rules governing the rapidly expanding technology. 

With Congress still unable to agree on a comprehensive federal framework, state governments have moved forward on a range of AI-related measures. These efforts focus on issues such as chatbot interactions with children, the use of automated systems in hiring decisions, and safeguards intended to prevent serious harms linked to advanced AI models. 

Many legislatures have shifted away from broader proposals that previously failed or were blocked by governors concerned about slowing innovation. Instead, lawmakers are advancing narrower bills aimed at situations where AI increasingly influences everyday life, often without users realizing it. 

Trump’s opposition to state-level oversight sparked objections from both Republicans and Democrats, along with consumer advocates and civil liberties organizations. Critics argued that limiting state action could leave major technology companies operating with little meaningful accountability. 

The administration has emphasized AI as a strategic economic and national security priority, particularly in competition with China. Trump argued that a patchwork of state regulations could hinder an industry attracting massive investment and playing an increasingly important role in economic growth. 

To support that position, the president signed an executive order directing the Department of Justice to review state laws deemed excessively restrictive. The order also instructed the Commerce Department to identify regulations considered problematic and suggested that certain federal funding programs could be affected by state AI policies. 

However, the White House said efforts aimed at preventing fraud and protecting consumers and minors would not be targeted. 

So far, there has been no sign that the administration has challenged any state law in court or withheld funding. Officials have instead said they are interested in working with lawmakers and other stakeholders to advance a national policy approach. 

Meanwhile, states continue to act. Illinois lawmakers approved legislation requiring developers of advanced AI systems to establish safety procedures designed to reduce the risk of catastrophic events, including large cyberattacks or disruptions to critical infrastructure. The proposal would also require independent audits to verify compliance. 

Across the country, states including Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon have adopted new rules governing chatbot behavior. Many of those laws require companies to disclose when consumers are communicating with AI rather than a person. Others strengthen protections for children and place limits on how minors interact with digital companions powered by artificial intelligence. 

Additional measures are under consideration. California lawmakers are debating legislation that would prevent employers from relying exclusively on AI when disciplining or dismissing workers. Other proposals seek tighter controls on chatbot interactions with children. 

While federal policymakers continue debating a nationwide strategy, state governments appear increasingly determined to fill the regulatory gap on their own. 

Major tech companies like D-Wave Quantum Inc. (NYSE: QBTS) are likely to keep a close eye on these regulatory developments at state level since they could reveal how other frontier technologies like quantum computing could be overseen once they become widely available to the public. 

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