States Push AI Regulation Despite Trump Executive Order

States Accelerate AI Lawmaking Despite Federal Pushback

Six months after President Donald Trump issued an executive order warning states not to regulate artificial intelligence, several states are moving forward with targeted AI legislation anyway. Illinois, Colorado, Connecticut, and others are enacting laws that address specific AI applications, from chatbot interactions with children to employer use of AI systems, even as Congress remains gridlocked on federal AI regulation.

The state action comes despite Trump's January executive order directing the attorney general to challenge state AI laws deemed more than "minimally burdensome" and threatening to withhold federal broadband and grant funding from states with AI regulations. The White House has not yet taken legal action or withheld funds from any state.

Why it matters

The growing patchwork of state AI laws creates regulatory uncertainty for technology companies while filling a vacuum left by federal inaction. As AI systems increasingly make consequential decisions about employment, credit, and healthcare, states are establishing accountability frameworks that could become templates for eventual federal legislation—or create compliance headaches for companies operating across multiple jurisdictions.

Illinois Takes Lead on Developer Accountability

Illinois legislation currently awaiting Governor JB Pritzker's signature would require developers of large advanced AI models to establish protocols preventing catastrophic outcomes like biological weapons attacks, power outages, or large-scale hacks. The bill goes beyond similar California and New York laws by mandating independent auditors review whether developers comply with their own safety policies.

The legislation passed with near-unanimous bipartisan support. State Senator Mary Edly-Allen, the bill's Democratic sponsor, dismissed Trump's threats: "I don't know if you've met Illinois, but we're pretty independent."

Policy analysts view the independent audit requirement as a significant step toward holding AI developers accountable for their products' real-world impacts.

Chatbot Restrictions Spread Across Party Lines

Both Republican and Democratic states enacted chatbot regulations this year, including Colorado, Connecticut, Idaho, Iowa, Nebraska, and Oregon. These laws typically require companies to disclose when users interact with AI rather than humans, restrict how chatbots engage with minors, give parents control over children's access, and protect data privacy.

Connecticut's recent law specifically targets companion chatbots that maintain ongoing relationships with users. These systems cannot interact with anyone under 18 unless programmed to discourage self-destructive behavior and provide parental management tools.

Employment and Transparency Requirements

Colorado now requires companies using AI systems for employment, education, housing, or banking decisions to inform people when AI influences decisions about them. Connecticut mandated that employers tell workers and job applicants when they interact with employment-related AI systems.

California lawmakers are advancing the "No Robo Bosses Act of 2026," which would prohibit employers from using AI alone to fire or discipline workers.

Republican States Show Mixed Response

While some Republican-led states have enacted AI regulations, others have pulled back. Florida's House refused to advance Governor Ron DeSantis's AI "Bill of Rights" legislation after House Speaker Daniel Perez cited Trump's position that federal government should control AI regulation. DeSantis countered that the federal government isn't acting.

In Utah, progress stalled on legislation after the White House sent lawmakers a one-sentence memo stating it was "categorically opposed" to the bill.

More state AI bills have been introduced this year than last, according to Justine Gluck, policy director of the Future of Privacy Forum, suggesting Trump's executive order has not deterred state action.

These details were first reported by the Associated Press.