President Trump today signed two executive orders creating a task force to challenge state laws on artificial intelligence and directing federal agencies to end “the outsized influence of proxy advisors that prioritize radical political agendas over investor returns.”
In his order on AI, Trump acknowledges that his administration must work with Congress to establish a national framework to regulate the technology. “Until such a national standard exists, however, it is imperative that my administration takes action to check the most onerous and excessive laws emerging from the states that threaten to stymie innovation,” the order states.
The order directs Attorney General Pam Bondi to establish an AI Litigation Task Force with the sole purpose of challenging state laws regulating AI. It also directs federal officials to potentially withhold funding for broadband deployment for states with “onerous” AI laws, and directs the Federal Trade Commission and Federal Communications Commission to explore paths to preempt state laws in AI regulation.
In his order on proxy advisors, Trump directs the Securities and Exchange Commission to rescind or revise any rules and regulations related to diversity, equity and inclusion, or DEI, and environmental, social and governance, or ESG, priorities. The order directs the chairman of the Federal Trade Commission to investigate proxy advisors for potential illegal activities. It also directs the Labor Secretary to strengthen ERISA fiduciary rules and increase fiduciaries’ transparency regarding their use of proxy advisors.
