The Biden administration has taken decisive action to centralize artificial intelligence regulation under federal authority, signing an executive order in December 2025 that aims to preempt conflicting state AI laws and establish a unified national framework.
The executive order, titled "Ensuring a National Policy Framework for Artificial Intelligence," directs the creation of an AI Litigation Task Force within 30 days to challenge state laws deemed inconsistent with federal policy objectives [Whitehouse.gov]. The administration argues that the current patchwork of state regulations creates compliance challenges and threatens U.S. competitiveness in AI innovation.
"State-by-State regulation by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging, particularly for start-ups," the White House stated in the order [Whitehouse.gov]. The administration specifically targets Colorado's AI Act, set to take effect June 30, 2026, claiming it may "force AI models to produce false results" to avoid differential treatment of protected groups.
The federal preemption strategy includes financial pressure, with the order directing agencies to restrict funding for states with "onerous AI laws" [Hklaw.com]. The Secretary of Commerce has 90 days to identify problematic state regulations, while federal agencies must eliminate regulatory obstacles the administration believes hinder AI development.
However, the order includes notable exceptions, preserving state authority over child safety protections, AI infrastructure permitting, government procurement of AI systems, and other designated areas [Whitehouse.gov].
The move comes as 2026 is expected to be a pivotal year for AI regulation enforcement globally. "The stage is set for important political and legal battles that will play out in 2026 and will define who controls AI, who bears the costs of its harms, and whether democratic governments and regulators can keep pace," according to policy experts [Techpolicy.press].
Internationally, the EU AI Act and the Council of Europe AI convention represent key frameworks that may influence regulatory approaches worldwide. Meanwhile, the UK is considering legislation to establish a central "AI Authority" through the Artificial Intelligence (Regulation) Bill reintroduced in March 2025 [Metricstream.com].
The federal action creates immediate uncertainty for healthcare organizations and other sectors that were preparing to comply with new state AI laws taking effect in January 2026. "Organizations that invest in compliance infrastructure now will be better positioned to adapt as the legal landscape continues to shift," legal experts advise [Akerman.com].
Congress has yet to pass comprehensive AI legislation, though Senate Majority Leader John Thune and Senator Amy Klobuchar's Artificial Intelligence Research, Innovation, and Accountability Act may be reintroduced [Hklaw.com]. Without federal legislation, the administration's preemption strategy faces potential legal challenges over constitutional authority and interstate commerce regulation.
As enforcement mechanisms take shape in 2026, the central question remains whether governments will establish clear prohibitions on certain AI applications or rely on voluntary industry standards. The outcome will likely determine the balance between innovation and consumer protection in the rapidly evolving AI landscape.