Investment firm Wedbush highlighted that U.S. President Donald Trump's executive order, aimed at limiting state-level regulations on artificial intelligence (AI), is seen as a "major victory" for large U.S. tech companies, including Microsoft (MSFT.US). Wedbush analyst Dan Ives noted in a client report: "This move is undoubtedly a significant win for AI firms like OpenAI, Alphabet (GOOGL.US), Microsoft (MSFT.US), Anthropic, and Meta Platforms (META.US), which have actively lobbied to curb AI regulations. Potential regulatory measures could have severely hindered innovation and adoption across all business levels. With trillions already invested in AI infrastructure and related technologies, this executive order seeks to streamline oversight and solidify U.S. leadership in the sector, especially as global competitors accelerate efforts to lead the AI revolution."
Ives added that the order dispels market concerns about "whether to continue heavy AI investments," lifting the "regulatory cloud" that had weighed on sector valuations. The directive tasks the U.S. Attorney General with forming an "AI Litigation Task Force" to challenge state AI laws deemed inconsistent with federal policy. Additionally, the Commerce Secretary must collaborate with other officials within 90 days to "publish an assessment of existing state AI laws, identifying provisions that conflict with or overburden federal policy."
This strategy strongly supports the tech industry, which has long feared fragmented state rules stifling AI progress. Companies have sought to challenge conflicting state laws through litigation and funding threats.
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