Trump's AI Executive Order: A Federal Push Against State Regulatory Fragmentation
Trump just shocked me and is forcing me to say something I didn’t think was possible to come out in my writing. The federal government is being used to increase economic freedom - never thought I’d actually write that.
I have some concerns, but let’s look at some benefits. The DOJ is one agency of government we actually need, so my concerns are not extreme.
Trump created the “AI Litigation Task Force” with one simple job: sue states over AI laws that micromanage the way models speak, rank, and decide. This hones in on rules that would force a company to change truthful outputs to avoid “algorithmic discrimination.”
Commerce now has 90 days to name and remove the oppressive AI state laws that conflict with the national framework. Prime example: Colorado’s AI Act is in the firing line.
This is good for business and removing what could lead to monopoly power. The compliance tax can only be covered by companies like Google and Meta. A lighter federal rule saves the little guy and keeps them competitive - no more legal privilege or government protection. Trump is removing regulatory barriers. And that’s what these state regulations are - they’re not helping us maintain a sense of safety in the market. This move pushes away from central planning in the industry.
A method that simply removed state and federal power would have been preferred. It’s a bit of a catch-22: in order to decentralize, we need to use centralized power. It has an oxymoronic vibe to it and can come across as hypocrisy in libertarian circles. However, for now it may be best to focus on the greater good versus idealism. The risk of leaning on the feds to enforce is a double-edged sword in this case. Congress still holds the power to pass a strict AI ban, or stricter-by-state standards, and there would be no recourse for the states that had a business practice that would give them a higher individual economic score. So this is a good first step, and we should go all the way in terms of deregulation.
DC has finally made a move that proactively shrinks regulatory risks and threats, but at the same time, they hold the keys to oppressive oversight. We’re getting closer to the right path, and if we remove the feds’ ability to regulate, it could be a doorway into true economic freedom for America. Our Freedom Index has dropped over the years and isn’t even in the top 10. Moves like this could set the tone for a new blueprint. If successful at the federal deregulation level, why not take it all the way?