Regulatory Landscape
The United States has taken a distinctly decentralized approach to AI regulation, relying on executive action, voluntary industry commitments, and existing regulatory authorities rather than comprehensive federal legislation. This reflects both the political difficulty of passing tech legislation through Congress and a philosophical preference for innovation-friendly governance.
The Biden administration’s Executive Order 14110, issued in October 2023, represented the most significant federal AI action to date, requiring safety testing for powerful models and establishing reporting requirements. However, the Trump administration in 2025 revoked this order, creating uncertainty about federal AI governance direction.
Key Laws
At the federal level, the US relies primarily on the NIST AI Risk Management Framework (voluntary), FTC enforcement actions against deceptive AI practices, and sector-specific rules from agencies like the FDA (AI in healthcare) and EEOC (AI in hiring). No comprehensive federal AI legislation has been enacted.
State-level activity has been far more aggressive. Colorado enacted the first comprehensive state AI law in 2024, while California’s legislature has produced dozens of AI bills addressing deepfakes, automated decision-making, and AI transparency. The vetoed SB 1047 highlighted tensions between safety advocates and the AI industry over model-level regulation.
Enforcement
Enforcement currently occurs through existing consumer protection authorities (FTC), sector-specific regulators, and state attorneys general. The FTC has pursued cases against companies making false AI claims and violating data practices in AI training.
Business Impact
The regulatory patchwork creates compliance complexity for AI companies operating across states. Companies must navigate a growing web of state laws with different requirements for impact assessments, disclosures, and bias testing. The absence of federal preemption means this complexity will likely increase, driving demand for AI governance tools and compliance frameworks.