.svg?rev=a492cc1069df46bdab38f8cb66573f1c&hash=2617C9FE8A7B0BD1C43269B5D5ED9AE2)
At a Glance
- The executive order outlines a future federal AI policy that may preempt state laws, but no timeline has been set.
- Existing state AI regulations remain in effect, so employers using AI for employment-related decisions should stay compliant with current state laws until further notice. Employers using AI for employment-related decisions should carefully monitor for potentially biased output generated by AI solutions.
Employers leveraging artificial intelligence (AI) in employment-related decision-making have seen significant changes in the regulatory landscape over the past two years. New York City, California, Colorado, Illinois and Maryland have taken the lead, with many other states and localities proposing similar measures.
Executive action by President Trump suggests the changes are far from over.
On Thursday, December 11, 2025, the White House issued an executive order titled “Ensuring a National Policy Framework for Artificial Intelligence.” The executive order’s objectives include promoting innovation among United States AI companies by minimizing restrictive regulation. Notably, it references the Colorado Artificial Intelligence Act as an example of cumbersome regulations the administration seeks to target. Below is a timeline of upcoming actions described in the executive order:
|
January 10, 2026 (30 days from executive order) |
The U.S. attorney general will establish an “AI Litigation Task Force” responsible for challenging state AI laws inconsistent with the purpose of the executive order. |
|
March 11, 2026 (90 days from the promulgation of the executive order) |
The U.S. secretary of commerce will release an assessment of current state AI regulations that are not aligned with the objectives of the executive order (AI Evaluation). Additionally, the secretary of commerce will provide a notice outlining the criteria for states to qualify for federal funding, indicating that states with burdensome AI regulation will be ineligible. The chair of the Federal Trade Commission will publish a policy statement regarding the application of the Federal Trade Commission Act’s prohibition of unfair and deceptive practices to AI models and relevant state laws. |
|
90 days from AI Evaluation |
The chair of the Federal Communications Commission is set to commence an evaluation of the potential adoption of a federal reporting and disclosure standard for AI models that preempts conflicting state laws. |
The executive order outlines a future federal AI policy that may preempt state laws, but no timeline has been set.
What Does This Mean for Employers?
Existing state AI regulations remain in effect, so employers using AI for employment-related decisions should stay compliant with current state laws until further notice.
Employers must remember that pre-existing antidiscrimination laws apply to AI-assisted employment decisions, without regard to the enforceability of AI regulation. Employers using AI for employment-related decisions should carefully monitor for potentially biased output generated by AI solutions.
