Trump's New AI Order: A Compliance Trap for Vendors
The author argues that the recent executive order on AI is not a deregulation holiday, but rather a litigation trigger that creates a compliance trap for AI vendors.
Why it matters
This news is important as it highlights the potential legal and compliance challenges facing AI vendors in the US due to the conflicting regulatory landscape.
Key Points
- 1The executive order aims to preempt state AI laws, but this could lead to a constitutional crisis as it conflicts with existing state laws and a Senate vote.
- 2Vendors may be tempted to delete their state-level compliance code, but this would be risky if the executive order is stalled by lawsuits.
- 3The only safe bet is to architect for the EU AI Act, as it is the only stable regulatory framework left.
Details
The author argues that the recent executive order on AI issued by the Trump administration is not a deregulation holiday as many are interpreting it. Instead, it is a litigation trigger that creates a compliance trap for AI vendors. By trying to preempt state AI laws with the executive order, the administration is picking a fight with 38 state legislatures and a Senate that has already voted 99-1 against this approach. If the executive order is stalled by lawsuits, vendors who have deleted their state-level compliance code could be left exposed on liability. The author advises vendors to maintain their state-level compliance efforts, as the only stable regulatory framework left is the EU AI Act.
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