US AI regulation: federal rules, state laws and what to watch
The United States does not have one comprehensive AI law. Instead, companies face a mix of federal agency enforcement, executive actions that change with administrations, and a growing, fast-moving set of state laws.
The federal picture
Federal agencies apply laws that already exist. The FTC polices deceptive or unfair AI claims, the EEOC looks at discrimination in hiring tools, and financial regulators look at fair lending. Federal policy has also pushed back against some state AI laws. Reports say the federal government intervened in a legal challenge to Colorado's law, so state rules can change quickly.
The NIST AI Risk Management Framework is voluntary, but it is widely used as a practical benchmark and is a sensible starting point for internal governance.
State laws worth knowing
- Colorado: the original 2024 Colorado AI Act was repealed and replaced in 2026 by a narrower automated decision-making law, reported to take effect on 1 January 2027. The state attorney general is still working on rules, so verify the current status before you act.
- California: several AI-related laws and privacy-agency rules apply, including rules on automated decision-making technology and transparency duties for large frontier AI developers.
- Texas: the Texas Responsible AI Governance Act took effect on 1 January 2026.
- New York City: Local Law 144 requires bias audits and notices for automated employment decision tools.
Other states have passed laws on deepfakes, chatbots, healthcare AI and government use, and the list keeps growing.
Where scrutiny is highest
Across states and agencies, the areas that draw the most attention are consequential decisions about people: employment, lending, housing, insurance, healthcare and education. If your AI touches these, expect more rules and more questions.
Practical steps
- Map where your users and customers are, because state law follows them.
- Classify your AI uses and flag any consequential decisions.
- Document how your system was built, tested and monitored.
- Give clear notices when people interact with AI or are subject to automated decisions.
- Set a reminder to re-check state laws every quarter, since they are changing fast.
Official sources: your state attorney general pages, the FTC website and NIST.
This article is general information, not legal advice. Rules change often, so check official sources before you rely on it.