Executive Order to Establish Unified National AI Standard Secures U.S. Competitiveness
PORTLAND, Ore. (Dec. 11, 2025) — President Donald Trump’s just-signed executive order establishing a federal framework for the regulation of artificial intelligence (AI) is prudent to focus on regulatory competence, International Center for Law & Economics (ICLE) Directory of Innovation Policy Kristian Stout observes.
Stout notes that the order defines a clear federal role in setting standards for foundational AI models, while preserving the states’ essential police powers to address specific local harms. The adoption of disparate rules across state and territorial jurisdictions would introduce crippling frictions to AI innovation and deployment, he added.
“Allowing core technical rules to be fragmented across 50 states would be an act of self-sabotage, as it would slow deployment, stifle investment, and the U.S. competitive advantage to foreign jurisdictions,” Stout said. “At the same time, it is important to ensure that states’ traditional rights and responsibilities in areas like consumer protection, fraud enforcement, privacy, and criminal law remain fully intact. This balance is the only way to safeguard the benefits of federalism while supporting the advance of breakthrough innovations.”
To interview Kristian, contact Jim Fellinger at [email protected].
About ICLE
The International Center for Law & Economics is a nonprofit, nonpartisan research center working with a roster of more than one-hundred academic affiliates and research centers from around the globe. ICLE scholars promote the use of law and economics methodologies to inform public policy debates.