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| By FreePik.com |
The Trump administration has introduced a new AI Action Plan that could change how artificial intelligence is governed across the country. The plan is designed to speed up AI development by giving more freedom to tech and finance companies while limiting state-level control.
One of the most controversial parts of the proposal is the threat to withhold federal funding from states that introduce strict AI rules. The administration argues that heavy regulations could hold back innovation and create confusion for businesses operating across multiple states. To prevent this, the plan calls for a 10-year freeze on new state and local AI regulations, keeping decision-making power at the federal level.
Supporters of the move believe it will help the U.S. compete globally in artificial intelligence by encouraging innovation without layers of red tape. But critics warn it could weaken consumer protections and spark major legal battles over states’ rights.
This plan marks a major shift in how the U.S. approaches AI—prioritizing rapid growth over stricter oversight. The debate now centers on who should set the rules for AI: state governments or Washington.
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