The Executive Order (EO) on Securing a National Policy Framework for Artificial Intelligence (AI) directs government agencies and working groups to consider obstacles to achieving national AI standards. “U.S. AI companies must be free to innovate without burdensome regulations,” the EO said, noting that “excessive state regulation” is impeding this obligation.
“The resulting framework must prohibit state laws that are inconsistent with the policies established in this order. The framework must also ensure that children are protected, censorship is prevented, copyrights are respected, and communities are protected,” the EO states.
State fair lending laws and algorithmic bias laws that regulate the use of AI are among the types of state laws that America's credit unions highlighted in a September letter to the Department of Justice that impose an undue burden on credit unions.
Specifically, the EO requires:
- Establish an AI Litigation Task Force within 30 days to challenge AI laws that conflict with EO policies.
- The Department of Commerce will issue a report within 90 days identifying state laws that are inconsistent with the policy goals stated in the EO. Within 90 days of report publication:
- The Federal Communications Commission must decide whether to adopt federal reporting and disclosure standards for AI models that preempt conflicting state laws.
- The Federal Trade Commission (FTC) should issue a policy statement clarifying the application of the FTC's prohibition against unfair and deceptive acts and practices against AI models and the extent to which its standards preempt state laws that require “changes in the truthful output of AI models.” and
- The executive branch will determine the extent to which states can reduce discretionary funding if they adopt conflicting AI rules.
State laws exempted from potential preemption include laws related to child safety, AI computing and data center infrastructure, state government procurement of AI, and “other matters to be determined hereafter.”
Read the full executive order
