In 2025, states enacted laws governing artificial intelligence (AI) use in hiring, employee evaluations and other employment decisions. Beyond workplace issues, states also addressed AI’s application in large-scale model development and creative industries. In December of last year, President Trump issued an executive order titled “Ensuring a National Policy Framework for Artificial intelligence.” The order seeks to preempt state-level regulations and establish a uniform national standard, arguing that a fragmented system of 50 different laws undermines U.S. innovation and global competitiveness in AI. NAW applauded President Trump for this action, expressing that this would lead to federal AI policy that fosters innovation while minimizing inconsistent burdensome requirements that impede our industry’s ability to deploy new technology in an efficient, responsible manner.

However, state officials on both sides of the aisle, including governors, have expressed concerns and objections to federal preemption citing restrictions on their ability to safeguard children, employees and consumers through AI regulation. As legislatures gavel in for new sessions, early indications are that states intend to continue advancing their own AI regulations, regardless of federal action, as evidenced by the actions of legislators in Colorado, New York and Washington. More details on proposed legislation in the aforementioned states are covered in this report.