3.1 – US Constitution and federalism
3.3.2 – Informal sources of presidential power and their use
Donald Trump has used an executive order to push artificial intelligence regulation firmly into federal hands, limiting the scope for individual states to introduce their own rules. The order directs federal agencies to develop national standards for AI and signals that state level regulation should not obstruct this framework. The justification is speed and clarity. AI is evolving quickly, and the White House argues that fifty different state approaches would slow innovation and weaken the United States’ economic position.
A central criticism of this move is that federal regulation tends to suit large AI companies far better than state governments or individual citizens. National rules are easier and cheaper for major firms to comply with. Companies operating across the whole US can adapt once, rather than rewriting systems for California, New York or Illinois separately. This predictability is especially valuable in a sector where compliance costs are high and legal risk is significant. Campaign finance data shows that executives and political action committees linked to the tech and AI sector have donated millions of dollars to Republican campaigns in recent election cycles, including Trump aligned committees. Oracle, whose founder Larry Ellison is a vocal Trump supporter, has been one of the most politically active tech firms, with company linked PACs and executives contributing substantial six and seven figure sums to Republican candidates over time.
Using an executive order to discourage state action concentrates power in the presidency and avoids congressional scrutiny. It also creates instability, as a future president could simply reverse course. This dispute also captures two core themes of US politics. It shows how presidents rely on informal powers like executive orders when Congress is gridlocked, and it highlights the tension within American federalism between national economic interests and state level democracy. The battle over AI regulation is therefore not just about technology, but about who benefits from centralised power and how far presidential authority should extend.
Factor well considered!!