The White House AI Order Sends the Right Message on Fragmented State Laws, Says the Center for Data Innovation

WASHINGTON—In response to President Trump signing an executive order ensuring a national policy framework for artificial intelligence, the Center for Data Innovation released the following statement from Director Daniel Castro:

The United States cannot win the global race to lead in artificial intelligence (AI) without a coherent, innovation-friendly national regulatory framework. As long as Congress fails to act, the growing patchwork of state AI laws will continue to fragment the U.S. market and weaken America’s competitive position. In that context, it is both prudent and justified for the administration to step in.

Federal preemption is essential. In the absence of congressional leadership, states have advanced proposals that would impose conflicting rules on a general-purpose technology that depends on national scale. The executive order sends a clear signal that continued regulatory fragmentation is unacceptable and raises the cost of federal inaction. That pressure is intentional—and overdue.

Importantly, the order draws sensible boundaries. By carving out areas such as child safety and state procurement, it makes clear that a national AI framework does not exclude states from policymaking. Instead, it establishes clear lanes that allow states to pursue policies affecting only their own operations or residents without disrupting interstate commerce. The order also underscores a critical principle missing from much of the global AI debate: Regulation should be targeted and minimally invasive, not a source of broad compliance burdens that slow innovation.

The executive order takes a measured approach rather than treating all state action as equally problematic. By calling for an evaluation of state laws on their merits, it creates space to distinguish between proposals that genuinely threaten innovation and those that may offer useful insights. While executive action alone cannot resolve the issue, this approach lays the groundwork for a more constructive debate.

Most importantly, the order directs the administration to develop legislative recommendations, making clear that executive action is meant to catalyze—not replace—congressional leadership. By putting the weight of the presidency behind federal action, the administration has taken an important step toward a durable national AI framework that protects innovation, competition, and U.S. leadership.

Contact: Nicole Hinojosa, [email protected]