Federal AI Preemption Watch
The rules for AI are being rewritten.
EO 14365 mobilized five federal tracks to pressure and dismantle state AI laws — and the infrastructure will likely outlast this administration. The practical answer to your compliance strategy depends on your client type.
AI Startup / Product Co.
- Regulatory headwinds clearing — don’t stop building.
- Duty-of-care & private-action rights stripped at the state level.
- Likely a new national floor: disclose, document, give users a correction right.
- FTC & DOJ enforcement is still a real possibility.
Action: Audit state exposure by June 30. Build documentation now.
Contact a lawyer: Before deployment decisions triggering SB 26-189’s materially-influences standard.
Digital Media / Creator
- Preemption debate is background context. Copyright is your real exposure.
- Federal preemption doesn’t directly touch copyright (already federal law).
- Output-reproduction theory: NY Times v. Perplexity & Disney v. Midjourney are live.
- Disney expert discovery closes Sept. 21, 2026. Motions due Nov. 23.
Action: Check AI vendor indemnification and audit output risk.
Contact a lawyer: Before finalizing contracts that allocate AI risk, or responding to enforcement.
Data & AdTech
- Dual exposure: state privacy law today, federal preemption maybe tomorrow.
- CPRA automated decision-making rules are enforced today — SECURE Data Act hasn’t passed.
- If the SECURE Act passes, California’s stricter privacy/AI rules could be blocked or limited wherever they conflict with the new federal standard.
- Healthcare-adjacent AI faces tighter scrutiny under SB 26-189.
Action: Operationalize CPRA now. Audit third-party data providers.
Contact a lawyer: When sector overlays obscure scope, or before an AG inquiry escalates.