• President Trump signs an executive order promoting advanced AI, aiming to set federal standards and curtail state-level regulations.
  • The order emphasizes national competitiveness, potentially preempting state AI safety laws and streamlining development.
  • Industry leaders welcome uniformity, while consumer advocates warn of weakened protections.

President Donald Trump signed an executive order on Thursday aimed at advancing artificial intelligence innovation and security, marking a major federal push to centralize AI policy. The directive seeks to establish a national framework for AI development, potentially preempting a patchwork of state regulations that have emerged in recent years.

The order, released by the White House, directs federal agencies to prioritize AI research, streamline deployment, and ensure U.S. leadership in the technology. According to people familiar with the matter, it includes provisions to challenge state laws that impose safety, transparency, or labor requirements on AI systems, arguing they hinder innovation and economic growth.

“This executive action reflects our commitment to winning the AI race while ensuring American values are protected,” a senior administration official said, speaking on condition of anonymity. The official added that the move is designed to “create a predictable environment for investors and developers.”

Industry groups have largely praised the order. Tech firms, including those in data centers and cloud services, see federal standards as reducing compliance costs and regulatory uncertainty. “A unified national approach is critical for maintaining U.S. competitiveness against China and other rivals,” said a lobbyist for a major AI company, who declined to be named.

However, critics argue the order could weaken consumer and worker protections. Some state lawmakers have expressed concern that preemption could roll back pioneering regulations in places like California, which have mandated AI safety testing and disclosure. “This is a gift to Big Tech at the expense of public safety,” said a representative from a consumer advocacy group contacted for comment.

The executive order builds on past administration efforts, including a 2023 directive on AI safety, but shifts focus toward deregulation and growth. It is likely to face legal challenges over federal overreach, legal scholars say.

Markets reacted positively, with AI-related stocks edging up in after-hours trading. The move signals a clearer path for federal funding and government partnerships, though implications for ethics and bias mitigation remain uncertain.

Correction: An earlier version of this article misstated the timing of the order; it was signed Thursday, not Wednesday.