Trump's executive order limiting states' AI regulations to face legal challenge? Democrats, rights groups raise alarm

Donald Trump's executive order limited states' regulation on artificial intelligence is facing criticism from Democrats, dissidents, and rights groups who worry that the move loosens oversight on big AI companies and could give the United States President too much power, according to reports.

While Donald Trump has claimed the move aims to free the space for innovation and growth, critics across party lines and consumer rights and civil liberty groups have raised the alarm over the Trump administration banning state regulations for AI, as per an AP report.

Notably, the states of California, Colorado, Texas and Utah have already passed laws on private sector AI ventures. These limit personal data collection, state government use of AI, and set mandates for transparency and discrimination checks, the report said citing the International Association of Privacy Professionals. Other factors covered by these rules include creation of nonconsensual porn and use of deepfakes in elections,

What is the criticism against Trump's executive order?

Critics who support strong regulation for tech and AI are waving red flags after Donald Trump's order. Non-profit Issue One argued that the move allows Big Tech to function “in a vacuum of accountability”.

Noting that state regulations protect against AI-driven scams and discriminatory price-fixing, Issue One's Liana Keesing, policy lead for technology reform explained to AP, “After spending millions of dollars on lobbying — including massive donations for the new White House ballroom — Big Tech has successfully leveraged those around the president to pass a federal moratorium that aims to wipe out bipartisan AI safeguards passed in both blue and red states.”

Calli Schroeder, director of the AI & Human Rights Program at the public interest group EPIC also told AP, “With a human, I can say, ‘Hey, explain, how did you come to that conclusion, what factors did you consider?’ With an AI, I can’t ask any of that, and I can’t find that out. And frankly, half the time the programmers of the AI couldn’t answer that question.”

Meanwhile, Shelby Knox, director of online safety campaigns at children's advocacy group ParentsTogether Action noted that young people are now growing up in an “AI saturated world”, warning, “A generation of parents watched their kids become the collateral damage of our failure to regulate social media, and now this moratorium threatens to repeat that tragedy with AI.”

What have politicians who oppose the move say?

According to a CNBC report, Democratic lawmakers and state officials have joined the chorus opposing Donald Trump's order and warn about legal action to block it. Democrat and Colorado Representative Brianna Titone, who co-sponsored the anti-discrimination law told CNBC, “I’m pretty much ignoring it, because an executive order cannot tell a state what to do.”

AP reported that Martin Looney, Democratic Senate President Pro Tempore on 12 December said Connecticut will continue its AI regulation plans despite the order.

Earlier in May, AGs from 40 states and territories across party lines signed a letter urging US congressional leaders to not pass a provision blocking state AI regulation for 10 years.

Could Trump's order on AI face legal challenge?

Moves in this direction have already been made, as per the AP report, adding that there's a “good chance” it turns into a court battle. In November, Colorado Attorney General Phil Weiser sent US congressional leaders a letter warning that the state would sue if the then draft order is signed.

More recently, on 11 December, Democratic California state Senator Scott Wiener, who wrote state's AI safety bill, which was signed this year, also warned, “If the Trump Administration tries to enforce this ridiculous order, we will see them in court.”

In a post on social media platform X (formerly Twitter), Democratic Senator from Minnesota Amy Klobuchar wrote, “This is the wrong approach — and most likely illegal. We need a strong federal safety standard, but we should not remove the few protections Americans currently have from the downsides of AI.” Klobuchar said.

Shatorah Roberson, a senior policy counsel at the Lawyers' Committee for Civil Rights Under Law told AP that Donald Trump does not have authority to preempt state laws. “This is an issue of our democracy and the president through executive order can’t just preempt state laws without going through the democratic process,” she added.

(With inputs from AP)