As the Trump administration rolls back federal regulations on artificial intelligence (AI), states across the United States are intervening to protect residents by drafting and implementing their own policies on this rapidly evolving technology. It comes after President Trump signed an executive order rescinding a Biden-era initiative aimed at ensuring the safe use of AI, including guidelines to mitigate risks related to AI bias and civil rights violations.
In 2024, 31 prominent states either adopted a resolution or enacted laws related to artificial intelligence, and in 2025 almost all states introduced AI-related legislative proposals. In a pioneering move, Colorado became the first state to establish comprehensive AI regulations in 2024, setting a precedent that others are currently following.
This year, Virginia followed suit, passing a comprehensive anti-discrimination law aimed at holding businesses accountable for biases in areas such as employment, housing and healthcare. If the law is signed by Republican Gov. Glenn Youngkin, the law is expected to come into effect in July 2026, and requires a clear documenting of how risk is assessed using high-risk AI systems and deploying these technologies.
In the ongoing debate about the implications of AI, many states focus on curbing the surge in deepfakes that could mislead public perceptions, particularly during elections. Statements such as Montana and South Dakota are working on legal frameworks to discourage the use of political deepfakes, while others, such as Hawaii and New Mexico, have drafted civil and criminal measures against the distribution of unconsensual, explicit deepfake media.
Lawmakers from various states, including California and Arkansas, have also introduced legislation that regulate the role of AI in healthcare and insurance decisions. Recently, the Utah Legislature approved a bill aimed at protecting mental health patients from potentially harmful interactions with AI chatbots, and told us important steps to ensure the deployment of ethical AI in a sensitive healthcare context.
Serena Oduro, senior policy analyst at Data & Society, expressed concern about the need for states to have more control over AI regulations as federal surveillance is declining. “I think the state has to step up as they need to protect their components as long as Trump continues on the path they are on the way,” Oduro said, noting the widespread fear surrounding unregulated AI technology.
Legislators aren’t just concerned about protecting consumers. They are also motivated by the innovation promises brought by AI. In Washington, Republican president Michael Keaton has introduced legislation aimed at promoting small businesses that use AI for impactful statewide projects, including wildfire tracing and cybersecurity advances. Earlier this month, the Washington State Legislature approved the grant program. This emphasizes the use of ethical AI and requires risk assessments from applicants. Keaton emphasized the dual focus on innovation and responsibility, saying, “We are looking for innovation and trying to get the money allocated to make use of that innovation, but we want to do it in a sensible way.”
The rush to regulate AI has caused a complex, fragmented landscape of statewide law, poses challenges for AI developers looking to navigate these various requirements. “I think the industry is struggling to understand how to comply with all of these laws,” highlights the difficulties posed by the definition of different states of AI and the unique rules imposed on developers, distributors and consumers.
Legislative patchwork can put developers in an irresistible position. While trying to promote innovation, they must also confront a mosaic of compliance obligations that may suppress the project if not navigated carefully. National conversations about AI and its impact have driven public awareness and the increased accessibility of generative AI tools such as Openai’s ChatGPT, leading topics to everyday discourse.
Overall, the balance between innovation and regulation will shape the future of American artificial intelligence as states continue to advance their respective AI policies. The results of these state-level initiatives determine not only how AI is integrated into different sectors, but also the trajectory of consumer rights and ethical standards in technology positioned to deeply intertwin with everyday life.
