On December 11, 2025, President Donald J. Trump signed an Executive Order (Executive Order 14365) titled “Ensuring a National Policy Framework for Artificial Intelligence.”
Of note, Executive Order 14365 follows on the heels of President Trump’s prior Executive Order 14179 issued back in July 2025. This prior Order, in general, outlined a blueprint for artificial intelligence (AI) strategy aimed at accelerating Innovation, building U.S. AI Infrastructure, and leading in International Diplomacy & Security.[1]

Regarding Executive Order 14365, this latest order regarding AI aims to reshape how artificial intelligence is governed in the United States, with broad implications for innovation, state authority and the nation’s global competition. Overall, this Order emphasizes maintaining U.S. leadership in AI by creating a national — rather than state-by-state — regulatory approach.
On this point, the Order specifically states that “[t]o win, United States AI companies must be free to innovate without cumbersome regulation. But excessive State regulation thwarts this imperative. First, State-by-State regulation by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging, particularly for start-ups. Second, State laws are increasingly responsible for requiring entities to embed ideological bias within models … Third, State laws sometimes impermissibly regulate beyond State borders, impinging on interstate commerce.”[2]
In terms of its provisions, Executive Order 14365 consists of nine different sections from which the author highlights the following general points:
- National Policy Priority: The federal government declares that a “minimally burdensome national policy framework” should guide AI development and deployment, with the goal of enhancing economic and national security. [3]
- AI Litigation Task Force: The Order directs the Attorney General to establish a specialized task force “whose sole responsibility shall be to challenge state AI laws” that are deemed inconsistent with the national policy, including on grounds that such laws unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations or are otherwise unlawful in the Attorney General’s opinion.[4]
- Evaluation of State AI Laws: The Order states that within 90 days of the date of this Order, the Secretary of Commerce in consultation with other Assistants to the President shall publish an evaluation of existing State laws related to AI that conflict with the policy and intent set forth with this Order.[5] Additionally, the Order mandates a report to be completed within 90 days to assess whether to adopt a Federal reporting and disclosure standard for AI models that preempt conflicting State laws,[6] as well as a policy statement explaining the circumstances under which State laws that require alterations to AI model outputs are preempted by the Federal Trade Commission Act’s prohibition on engaging in deceptive acts or practices impacting commerce.[7]
- Legislative Recommendations: Lastly, the Order directs legislative recommendations establishing a unform Federal policy framework for AI that preempts State AI laws that conflict.[8]
Going Forward
As we head into 2026, it will be interesting to see how the specific objectives outlined in Executive Order 14365 develop as the different task forces and groups carry out their directives. Of note, some states have already passed significant legislation and regulations regarding AI and how those laws stand up against a federal directive remains to be seen. Verisk will closely monitor developments regarding this Executive Order and will provide updates as warranted.
[1] Riordan, K. (2025, September 25). New AI Report and Executive Orders Released. Verisk. https://www.verisk.com/blog/new-ai-report-and-executive-orders-released/
[2] President Donald J. Trump, Executive Order, Ensuring a National Policy Framework for Artificial Intelligence, December 11, 2025. Section 1, Purpose.
[3] Id. Section 2, Policy.
[4] Id. Section 3, AI Litigation Task Force.
[5] Id. Section 4, Evaluation of State AI Laws.
[6] Id. Section 6, Federal Reporting and Disclosure Standard.
[7] Id. Section 7, Preemption of State Laws Mandating Deceptive Conduct in AI Models.
[8] Id. Section 8, Legislation.