President Donald Trump signed an executive order Thursday evening that directs federal agencies to challenge state AI laws, arguing that startups need relief from a 'patchwork' of rules. Legal experts and startups meanwhile say the order could prolong uncertainty, sparking court battles that leave young companies navigating shifting state requirements while waiting to see if Congress can agree on a single national framework. The order, titled 'Ensuring 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 on the grounds that AI is interstate commerce and should be regulated federally. It gives the Commerce Department 90 days to compile a list of 'onerous' state AI laws, an assessment that could affect states' eligibility for federal funds, including broadband grants. The order also asks the Federal Trade Commission and Federal Communications Commission to explore federal...
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