Ensuring a National Policy Framework for Artificial Intelligence

A Working Analysis for Dispute Resolution Professionals

The Executive Order on Ensuring a National Policy Framework for Artificial Intelligence sets out a clear federal push to consolidate AI regulation under a single, minimally burdensome national standard. It emphasizes rapid innovation, global competitiveness, and protection of truthful AI outputs, while rebuking state-level AI laws that create fragmented compliance obligations or compel altered results. The Order directs federal agencies to evaluate, challenge, and potentially preempt conflicting state regulations, ties certain federal funding to state regulatory behavior, and lays the groundwork for future legislation that would formally establish nationwide AI governance while preserving limited areas of state authority.

Key Points

• Federal government is asserting control over AI regulation.
  The Executive Order signals a strong move toward a single national AI framework. For developers and CEOs, this reduces long term uncertainty, but in the short term it increases legal friction with states.
  
• State level AI laws are now a litigation target.
  A dedicated federal task force will actively challenge state AI regulations viewed as burdensome, unconstitutional, or interfering with truthful model outputs. Businesses operating across states should expect uneven enforcement during this transition.
  
• Innovation is prioritized over precaution.
  The Order explicitly favors rapid AI development and deployment. For developers, this is permission to move faster. For executives, it is also a reminder that speed increases legal and reputational exposure if governance is weak.
  
• Truthful AI outputs become a legal issue.
  State laws that pressure AI systems to alter factual results may be challenged as deceptive under federal law. This places new importance on model transparency, documentation, and defensibility of outputs.
  
• Funding is used as leverage.
  States with restrictive AI laws risk losing access to certain federal broadband and technology funds. CEOs should watch how this affects infrastructure, talent migration, and regional investment decisions.
  
• Federal standards may replace state reporting rules.
  The FCC and FTC are directed to consider national disclosure and consumer protection standards for AI. This could simplify compliance for large companies while raising the bar for internal reporting systems.
  
• Some state authority remains intact.
  Child safety, state procurement, and most data center regulations are not automatically preempted. Developers and executives still need state level awareness, even as federal rules expand.
  
• Conflict is inevitable, mediation will matter.
  Expect disputes between companies and states, between regulators and developers, and inside organizations balancing growth with compliance. Mediators will likely see more policy-driven, high-stakes conflicts tied to AI deployment decisions.
  
• The direction is clear even if the path is not.
  This Order does not end regulatory ambiguity overnight. It does, however, signal where power is moving and which arguments are gaining traction now.

Key Takeaway for Mediators

A key takeaway for mediators using AI is that truthfulness and neutrality in AI-assisted tools are becoming legal, not just ethical, requirements. As federal policy moves to challenge state laws that compel altered or biased AI outputs, mediators who rely on AI for case analysis, drafting, or decision support should focus on transparency, accuracy, and defensible use of AI. This reinforces the mediator’s core role as a neutral facilitator and suggests that how AI tools are selected, documented, and explained to parties may soon matter as much as the outcomes those tools help produce.

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[i] https://www.whitehouse.gov/presidential-actions/2025/12/eliminating-state-law-obstruction-of-national-artificial-intelligence-policy/

Robert Bergman

Robert Bergman with Next Level Mediation provides full mediation services - including proprietary and confidential Decision Science (DS) analysis that assists each party in understanding their true litigation priorities as aligned with their business objectives. Each party receives a one-time user license to access our exclusive DS Application Cloud. We… MORE