The executive order is the latest in a series of attempts by the Trump administration to hold back state-level AI rules. But many Republicans are also uncomfortable with the effort.

Trump signed an AI executive order targeting state laws and promising one national rulebook. Critics warn it could trigger court battles and prolong uncertainty for startups while Congress debates federal rules.

Colorado's state law, passed in 2024, seeks to prevent discrimination in the AI systems that businesses and governments use in making key decisions, such as hiring, education and banking.

President Donald Trump executive order on a national artificial intelligence framework threatens funding for states that pursue AI laws deemed "onerous."

The order creates an "AI Litigation Task Force" to challenge state laws and uses federal funds for broadband access as a bargaining chip.

Critics argue that US President Donald Trump's executive order urging states to avoid regulations on artificial intelligence favours big AI companies and limits oversight, raising issues of accountability and risks.

President Donald Trump signed an executive order Thursday night to impose a national artificial intelligence standard, a move that limits states’ efforts to enact their own AI laws.

“President Trump’s Executive Order on Eliminating State Law Obstructing National AI Policy is an important step to ensuring there are clear and consistent rules that can keep Americans safe while allowing innovation to thrive,” Moore said. “States will still play a vital role, but a strong federal standard is essential to advancing AI innovation.”