President Donald Trump signed an Executive Order At noon on Thursday, which directed the federal agency to direct the state law, the opening aid required relief from the “Patchwork” rule. But legal experts and startups say the order could spell disaster, creating a backlog of court cases, leaving young companies to navigate the country’s complexities while they wait for Congress to agree on a single national framework.
The Orderentitled “Creating a national policy framework for artificial intelligence,” directs the Department of Justice to set up a task force within 30 days to challenge certain state laws in the field that AI is Federally Trade AI and must be federally regulated. Give the department of commerce 90 days to compile a list of “laws” inunous “, an assessment that can affect the rights of states to federal funds, including broadband grants.
It also asked the Federal Trade Commission and the Federal Communications Commission to explore Federal Standards that could mandate states and instruct Congress to work on a uniform AI law.
The order lands amid a broader push for Rein in the rules of AI countries Next Business In Congress to pause state regulations stalled. Lawyers on both sides have argued that without federal standards, barring states from acting could leave consumers and companies unchecked.
“This David Sacks-led executive order is a gift for Silicon Valley oligarchs who are using their influence in Washington to shield themselves and their companies from accountability,” said Michael Kleinman, Head of US Policy at the Future of Life Institute, which focuses on reducing extreme risks from transformative technologies, in a statement.
Sacks, AI and CrPPTO Policy Czar, has been a leading voice behind the administration’s preemption push.
Even the proponents of the national framework conceded not to create one. With state laws still enforceable unless a court blocks or saves enforcement, startups may face a more comprehensive transition period.
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Sean Fitzpatrick, CEO of Lexisnexis North America, UK, and Ireland, told TechCrunch that he will defend the consumer equipment authority in court, with the case possibly going up to the Supreme Court.
While proponents argue the order could reduce accuracy by giving time to war on AI Rules in Washington, the legal chief said it would make the country’s navigation and navigation country’s navigation a breeze.
“Because startups are prioritizing innovation, they usually don’t have … Regular Government programs that are strong enough to reach the scale that requires programs,” HART Brown, author of technology Oklahoma Gov. “These programs can be expensive and time-consuming to meet a very dynamic regulatory environment.”
Arul Nigam, Co-Founder at Labre Breaker, a startup that does smart chatbots and mental ai chatbots, echoes these concerns.
“Isn’t there uncertainty about the requirements (AI Companion and Chatbot companies) have to regulate themselves?” Nigam told TechCrunch, which noted a patchwork of state laws that have been troubling the field. “Is there a source standard that we have to follow? Do they have to build it?”
He added that he hoped that Congress could move faster now to pass a better federal framework.
Andrew Gamino-Cheong, CTO and Founder of AI Gawe Company Plannedtold Techcrunch The Eo will step back in AI innovation and pro-Ai goals: “Tech Tech AI is the most, especially the ones that can’t work for lawyers who almost can,” he said.
He added that legal ambiguity makes it more difficult to sell to risk-sensitive customers like legal teams, financial firms, and care organizations, and insurance costs, and insurance costs. “Even the notion that AI is not cured will reduce trust in AI,” which is already there and threatens Gamino-Cheong’s adoption.
Gary Kibel, a partner at Davis + Gilbert, said businesses would welcome national standards, but “executive orders are not always the right vehicle to consolidate the laws that exist in the states.” He warned that uncertainty opens two extremes: the greatest rule or no action, can create a “West West” that absorbs risk and waits.
Morgan Reed, president of the App Association, meanwhile, urged the congress to quickly “comprehensive, and the long target against the AI camel law, and the long court against the constitution of the executive order is not better.”