‘One-Rule’ AI Regulation Might Be Bad News for California

President Donald Trump has announced plans to kneecap state regulatory efforts around artificial intelligence in favor of a “one-rule” regulatory model.

The president said in social media posts that companies operating in the area should not be required to comply with 50 unique sets of rules and regulations, and that this model will only hamper future innovation.

The first hints of executive action came after a leaked draft was circulated in late November. That document cited the burdensome environment caused by more than 1,000 pieces of state legislation and the creation of a task force to evaluate and challenge state laws.

With efforts to create a national regulatory framework falling flat in Congress, the president is doubling down on executive action with a promise to sign a “one rule” order this week.

For California, the action could challenge — or at the very least be the start of a lengthy legal battle — a host of laws already in play. The state has been aggressive in not only finding new use cases for the technology in government, but also in establishing what lawmakers and leaders have said are necessary guardrails to protect residents.

Perhaps the most prominent piece of legislation signed into law in the state was Senate Bill 53, also known as the Transparency in Frontier Artificial Intelligence Act. The bill was signed into law by Gov. Gavin Newsom in September and set new safety disclosure requirements and whistleblower protections for the companies operating these AI models.

That legislation was at the center of a significant opposition effort from industry leaders, who voiced concerns that the bill would create duplicative and burdensome requirements across the state, federal and international regulatory landscape.

But SB 53 is far from the only AI-centric law passed in the state this legislative session. Newsom also signed Assembly Bill 489, which set new rules around AI systems and health advice; SB 243, which outlined new rules around companion chatbots that interact with minors; AB 621, which restricts deepfake pornography; as well as several other bills.

In 2024, a banner year for AI-related bills, Newsom commented on the need to move cautiously in the regulatory space, saying, “I don’t want to cede this space to other states or other countries. If we over-regulate, if we overindulge, if we chase the shiny object, we could put ourselves in a perilous position,” Politico reported.

The governor’s office did not respond to a request for comment on the impending order Monday.

This story first appeared in Industry Insider — California, part of e.Republic, Government Technology’s parent company.