DRI Publishes Article By Farmer And Abutouq On Executive Order Targeting State AI Laws

Jana Slavia Farmer (Partner-White Plains, NY) and Yusef Abutouq (Associate-New York, NY) coauthored “Federal Position on State Patchwork of AI Laws,” published in the April 2026 edition of DRI’s For the Defense. The article examines the evolving federal response to the growing patchwork of state AI laws. Jana and Yusef explain that, in the absence of a comprehensive federal framework, states have taken the lead in regulating AI, creating a complex and layered compliance environment for businesses. They authors analyze the December 2025 Executive Order (EO), which calls for a coordinated shift toward national uniformity. That said, the EO alone can neither direct a federal law to be passed nor can it preempt state laws on its own. As Jana and Yusef note, “the EO is a roadmap for potential future changes, not a current defense against state enforcement actions.” The article analyzes the legal mechanisms set in motion by the EO, including the establishment of an AI Litigation Task Force to bring federal challenges against targeted state laws, a Department of Commerce evaluation to identify “onerous” state AI requirements, and potential FCC and FTC rulemaking on disclosure and deceptive practices standards. The authors also discuss the types of state laws most likely to face federal challenges, particularly those that impose AI-specific disclosure requirements or attempt to regulate how AI systems generate or present content.  It is anticipated that the Task Force will bring constitutional challenges and federal preemption arguments, likely grounded in compelled speech or burden on interstate commerce theories. In contrast, more traditional, technology-neutral laws addressing exploitation, misappropriation of likeness, or unsafe practices are less likely to be near-term targets. The article concludes with practical takeaways for businesses as they continue to comply with existing state laws while preparing for potential federal litigation, rulemaking, and legislative developments. Of note, no definitive list of state AI laws to challenge has been released publicly by the Department of Commerce yet, although it was expected back in early March.  

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