States Voice Concern with Conflict in AI Regulation
State policymakers continue to express concern with President Trump’s Executive Order on Artificial Intelligence (AI). The president’s executive order attempts to preclude a “patchwork of 50 different regulatory regimes” through individual states’ efforts to regulate AI. State officials contend, however, that Congress’ failure to act thus far leaves holes in consumer protections. In the insurance sector, state officials also point to the state-based regulatory structure as being tailored and responsive the needs of local consumers.
President Trump issued the executive order on AI just days after Florida Governor Ron DeSantis announced his AI Bill of Rights. The Governor’s proposal contains a range of consumer protections his administration intends to pursue in Florida’s 2026 legislative session. DeSantis believes much of his AI Bill of Rights proposal is consistent with the Executive Order. DeSantis distinguishes his proposals from laws in states like Colorado and California, which the Governor says impermissibly affect outcomes of AI models contrary to the President’s intent.
Regardless, Governor DeSantis also believes Florida would prevail in any challenges to his AI laws. DeSantis said, “. . . the reality is I don’t anticipate that even happening against any of the stuff we’re doing in Florida. But if it does, I think we would be well positioned to be able to prevail on that.” The Governor believes states are within their rights to regulate AI and presidential executive orders cannot block state laws.
Other states, including some with Republican leadership, find themselves wrestling with the impact of the Executive Order on state laws. For example, the Texas Responsible Artificial Intelligence Governance Act became effective January 1, 2026. Key regulatory areas of concern addressed in Texas law include child pornography, data privacy and the potential for discrimination. Of note, Texas reportedly was awarded $3.3 billion in federal funding to expand broadband access. President Trump’s executive order seeks to potentially deny funds to states with contradictory AI laws. “We can’t be handcuffed by the federal government,” Texas state senator Angela Paxton recently wrote on X.
This concern is resonating across the country, with approximately 45 states currently having or actively considering AI regulations. Common themes in these initiatives include consumer protection (guarding against algorithmic bias and unfair/deceptive practices); transparency (disclosures when AI is being used); and accountability (establishing responsibilities for AI developers and those deploying AI). State legislators across the country have expressed concern with failure to adopt protections at the state level considering that Congress has not yet enacted meaningful legislation. This promises to be a high-profile issue in 2026, especially in Florida as the annual legislative session commences in January.