Trump’s AI Order Provokes Pushback from California Officials and Consumer Advocates

In the last decade, California has passed 42 laws to regulate artificial intelligence, more than any other state, according to Stanford’s Institute for Human-Centered AI. So it comes as no surprise that state leaders reacted with ire to President Donald Trump’s executive order slapping down state efforts to regulate AI.

The clash highlights the growing friction between California’s push for consumer protections and the tech industry’s efforts to neutralize regulation. The executive order follows previous failures led by Silicon Valley venture capitalist David Sacks, now the president’s AI and crypto advisor, to pass a moratorium on state AI regulation through Congress.

“President Trump and Davis Sacks aren’t making policy — they’re running a con. And every day, they push the limits to see how far they can take it,” Gov. Gavin Newsom wrote in a statement on Thursday.

As an earlier draft of the order circulated in Washington, critics warned it would neuter state laws designed to protect children and adults from the more predatory forms of commercial AI.

Trump’s executive order echoed talking points articulated by Silicon Valley leaders, including calls for a uniform federal regulatory framework, and concerns that state regulations could slow the pace of AI innovation.

“POTUS stepping in creates space for builders to focus on innovation while Congress finishes the job,” wrote Collin McCune, who leads government affairs for the Menlo Park-based venture capital firm Andreessen Horowitz, which is among the companies that have spent tens of millions of dollars to block or weaken Congressional action. “Now lawmakers have to act. Our standing in the global AI race—and the direct benefits Americans will see from it—depend on it,” he added.

The industry push to get the White House to supersede state legislation is “shortsighted,” said State Sen. Josh Becker, D-Menlo Park, who has worked to pass several of California’s state bills governing AI. “I think they’re going to pay the price in the long run.”

But just how big of an effect the order will have on California’s AI regulations is unclear. It includes exemptions for laws that cover child safety, data center infrastructure, state government use of AI and “other topics as shall be determined.”

“This is going to sow massive confusion in the industry,” Becker said.

Becker is wondering about the future of several AI bills he co-authored, including one regulating AI companion chatbots, due to go into effect in January, which Newsom signed into law as part of a broader package of online safety and emerging-tech protections.

“Is that affected by this? Because there’s a big part of it that deals with kids and chatbots, but there were parts of the bill that dealt with other things,” Becker said.