AI Governance and Regulation

The U.S. approach to artificial intelligence governance is rapidly evolving, creating a complex regulatory landscape across federal agencies and states.

Federal Regulation and Multiple Agencies

At the federal level, multiple agencies oversee AI aspects. The Federal Trade Commission investigates AI targeting vulnerable populations. The Securities and Exchange Commission scrutinizes AI in investments and AI washing, while CFIUS reviews foreign AI investments for national security risks. Commerce Department export rules control AI technologies, and the Pentagon develops AI with ethical guidelines.

State Laws and Federal Pushback

States like California and Colorado have enacted AI laws on transparency, bias, and automated decisions, effective in 2026. Texas’s framework may influence others. A December 2025 Executive Order seeks a national AI framework, challenging state laws via litigation and funding to promote minimally burdensome standards.

Key Concerns

Regulators focus on AI in finance, design features, and protecting minors from targeting.

In 2026, enforcement intensifies amid federal-state tensions, requiring businesses to navigate evolving rules for compliance.