Analyzing critical legal trends and developments across data, cyber, AI and digital regulations from around the world and beyond borders

On March 20, 2026, the White House published a four-page document with “Legislative Recommendations” in its National Policy Framework for Artificial Intelligence (the “AI Framework”). The AI Framework does not include specific draft legislation or an executive order, but instead contains recommendations for Congress, setting out the administration’s vision for a comprehensive federal AI legislative package. The AI Framework is not legally binding either for on Congress or on private sector companies. The AI Framework, building on Executive Order 14365, outlines eight key policy areas for federal AI legislation aimed at preempting restrictive state laws and bolstering AI innovation.

Background

The AI Framework represents the latest significant step in the Trump administration’s technology agenda and is consistent with, and builds on, its past actions regarding the national AI strategy going back to the very first days of President Trump’s second term. Within the first week of returning to the presidency, President Trump revoked the Biden-era Executive Order 14110 on “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence”, which he swiftly replaced with Executive Order 14179 on “Removing Barriers to American Leadership in Artificial Intelligence”. Executive Order 14179 established the national AI policy to “sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security,” but provided few specifics.

The Trump administration’s AI regulatory vision came into sharper focus in the months following Executive Order 14179. The notion of pulling on federal levers to mitigate state AI regulation first emerged in negotiations over the President’s “One Big Beautiful Bill Act”, but the proposed 10-year moratorium was removed before the law ultimately passed.   

Then, following consultation with stakeholders, the White House unveiled its AI Action Plan in July, offering a more comprehensive roadmap for a federal AI strategy. The AI Action Plan notably called for the removal of regulatory barriers to AI innovation, chiding “states with burdensome AI regulations” while cautioning that the federal government “should also not interfere with states’ rights to pass prudent laws that are not unduly restrictive to innovation.”

The AI Action Plan was followed in December by Executive Order 14365 on “Ensuring A National Policy Framework For Artificial Intelligence”, which expands on the AI Action Plan’s roadmap with specific actions and directed federal agencies, including the Department of Commerce and the Federal Communications Commission, to take actions against states with “onerous AI laws” and to prepare an evaluation of particular state laws. Several states have enacted laws regulating artificial intelligence or let them go into effect before and after Executive Order 14365 was issued, including California, Colorado, Texas, New York, and Utah.

Executive Order 14365 also directed the Special Advisor for AI and Crypto and the Assistant to the President for Science and Technology to prepare a uniform legislative proposal for the regulation of AI that would specifically preempt state AI laws deemed burdensome by the administration. It further called on the Department of Justice to establish an AI Litigation Taskforce to challenge state laws that are inconsistent with national AI priorities; the Justice Department announced in January that it had in fact convened this Taskforce.

The AI Framework

The AI Framework presents legislative recommendations across eight distinct areas, advancing themes present in the administration’s earlier pronouncements on AI. These recurrent themes include preserving American dominance in innovation, balancing AI regulation with First Amendment concerns, avoiding burdensome regulatory patchworks, examining the impacts of AI on the American workforce, and moving away from the previous administration’s focus on AI safety to one that prioritizes innovation. In addition to these established themes, the AI Framework expands on the children’s safety aspects of the federal AI strategy, provides new detail on the administration’s positions on intellectual property aspects of AI, and addresses the impact of AI on energy affordability.

Protecting Children and Empowering Parents. The AI Framework calls on Congress to strengthen protections for children using AI services while equipping parents with effective control tools. Recommended measures include age‑assurance mechanisms, safeguards against sexual exploitation and self‑harm, application of existing child privacy laws to AI (including limits on data use for training and advertising), and the avoidance of vague content standards that could spur excessive litigation. It also urges preservation of states’ ability to enforce generally applicable child‑protection laws, which has been an area of intensive statehouse legislative activity over the past couple years.

Strengthening Communities and Infrastructure. The AI Framework emphasizes that AI development and infrastructure should promote and enhance energy grid reliability while protecting communities from harm. The AI Framework urges Congress to ensure that AI data center construction and operation does not result in increased residential electricity costs from AI data centers and to streamline permitting to accelerate AI infrastructure buildout so that on-site and behind-the-meter power generation options are more accessible and attractive to AI developers. On AI safety, the AI Framework directs Congress to support law enforcement efforts to combat AI‑enabled fraud and impersonation scams and bolster national security agencies’ technical understanding of frontier AI. The AI Framework also advocates for the expansion of grants, technical assistance programs, and tax incentives to facilitate small business adoption of AI tools.

Respecting Intellectual Property Rights and Supporting Creators. The framework expresses the administration’s policy position that the training of AI models on copyrighted material does not constitute copyright infringement.  While acknowledging the debate between AI developers and content owners on this very issue — which has been the focal point of a recent pre-publication report by the Copyright Office and remains the subject of ongoing multi-district litigation  — the AI Framework recommends allowing courts to resolve the ultimate question of whether such training constitutes fair use. Consequently, it advises against legislative interference on this issue. Yet, to address potential compensation models for content owners without resolving the underlying liability question, the AI Framework suggests exploration of a collective licensing or rights‑management framework that avoids antitrust liability.  The framework does not propose a specific mechanism for such licensing, nor does it address the threshold question of whether or when such licensing would be required if training is ultimately deemed non-infringing.  Additionally, the framework calls for federal protections against unauthorized AI‑generated digital replicas of individuals that are consistent with the First Amendment.

Preventing Censorship and Protecting Free Speech. The AI Framework argues that AI policy must uphold First Amendment values by preventing government coercion of AI or technology providers to suppress or manipulate lawful expression. It recommends creating effective avenues for individuals to seek redress when federal agencies attempt to censor speech or dictate AI‑generated information.

Enabling Innovation and Ensuring American AI Dominance. The AI Framework urges Congress to remove barriers to AI innovation by establishing regulatory sandboxes, expanding access to federal datasets in AI‑ready formats, and relying on existing sector‑specific regulators and industry‑led standards rather than creating a new federal AI regulator. The approach endorsed by the AI Framework focuses on accelerating deployment of AI applications across the economy while preserving flexibility for rapid technological advancement.

Educating Americans and Developing an AI‑Ready Workforce. The AI Framework stresses that workers must share in AI‑driven growth through education and skills development. It recommends legislative action to incorporate AI training into existing educational and vocational programs, expanding federal research on AI‑driven workforce shifts, and strengthening land‑grant institutions’ capacity to provide technical assistance, demonstration projects, and youth AI development initiatives.

Preempting State AI Laws. Finally, the AI Framework calls for a consistent nationwide AI policy that preempts state laws imposing undue burdens, while respecting core principles of federalism. States would retain authority over certain domains, like general consumer protection, fraud, child protection, zoning, and their own governmental use of AI, but would be precluded from regulating AI development itself, penalizing developers for third‑party misuse, or restricting lawful AI use in ways that undermine national competitiveness and U.S. leadership in AI.

Takeaways

Building on their prior actions in the AI regulatory space, the AI Framework provides new insight into the administration’s AI legislative vision. Nevertheless, the success of any legislation remains uncertain in an election year.

Businesses that develop, contract for, or deploy AI tools should continue to build structured, flexible AI governance programs that enable their organizations to adapt quickly to a globally changing legal and regulatory environment and the corresponding compliance burdens. The flexibility of this governance should not only seek to be adaptable to the changing legal and regulatory environment but also empower companies deploying governance to realize the benefits of these transformative new technologies. It is important to monitor both legislative developments as well as caselaw updates (for example, the AI Framework’s deferring to the courts to resolve active IP litigation).

Author

Brian Hengesbaugh is Global Chair of Baker McKenzie's Data & Cyber Practice. Formerly special counsel to the general counsel of the US Department of Commerce, Brian played a key role in the development and implementation of the US Government’s domestic and international policy in the area of privacy and electronic commerce. In particular, he served on the core team that negotiated the US-EU Safe Harbor Privacy Arrangement (Safe Harbor) and earned a Medal Award from the US Department of Commerce for this service.

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Justine focuses her practice on both proactive and reactive cybersecurity and data privacy services, representing clients in matters related to information governance, diligence in acquisitions and investments, incident preparedness and response, the California Consumer Privacy Act, privacy litigation, and cyber litigation.

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Lothar has been helping companies in Silicon Valley and around the world take products, business models, intellectual property and contracts global for nearly 20 years. He advises on data privacy law compliance, information technology commercialization, interactive entertainment, media, copyrights, open source licensing, electronic commerce, technology transactions, sourcing and international distribution at Baker McKenzie in San Francisco & Palo Alto.

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Keo McKenzie is a partner in Baker McKenzie's Intellectual Property and Technology Practice Group (IPTech), based in the Firm’s Palo Alto office. Keo has significant experience advising multinational technology, life sciences, and healthcare companies with complex matters related to regulatory and transactional issues presented by digital health technologies.

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Cristina Messerschmidt is a partner in the Data and Cyber practice group based in Chicago, advising global organizations on data privacy and cybersecurity compliance requirements, data security incident response, and legal issues related to AI.

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Susan Eandi is the head of Baker McKenzie's Global Employment and Labor Law practice group for North America, and chair of the California Labor & Employment practice group. She speaks regularly for organizations including ACC, Bloomberg, and M&A Counsel. Susan has been published extensively in various external legal publications in addition to handbooks/magazines published by the Firm. Susan has been recognized as a leader in employment law by The Daily Journal, Legal 500, PLC and is a Chambers ranked attorney.

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Caroline Burnett is a Knowledge Lawyer in Baker McKenzie’s North America Employment & Compensation Group. Caroline is passionate about analyzing trends in US and global employment law and developing innovative solutions to help multinationals stay ahead of the curve.

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Josh Wolkoff is a partner in the North America Intellectual Property practice group. He litigates and counsels clients on all aspects of copyright and trademark law, with a focus on representing clients in the media, entertainment, technology, luxury and fashion industries.

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Alysha Preston is a partner in the Firm’s Intellectual Property & Technology practice group. Alysha counsels domestic and multinational companies in navigating complex issues involving intellectual property and technology assets, including in commercial arrangements (such as licensing) and in the context of mergers and acquisitions, joint ventures and spinouts. Among other rankings and awards, Alysha has been named as Ones to Watch® in America for Intellectual Property by Best Lawyers (2026 Edition) and recognized as a “Rising Star” by Managing IP in 2025.

Author

Stan is a seasoned transactional counsel with extensive experience advising sponsors, strategic investors, and financial institutions on the full lifecycle of energy and infrastructure projects. His practice spans development, project finance, tax equity and tax credit transfers, joint ventures, operations, asset management, acquisitions, divestitures, and corporate structuring. With a global legal background in both common law and civil law systems, Stan brings a practical, solutions-oriented approach to complex transactions. He previously chaired the Firm’s Global Renewable Energy Industry Group and currently serves on the Global Project Finance Steering Committee. Stan’s work also includes structuring and negotiating senior and mezzanine loan facilities - secured and unsecured - as well as advising on infrastructure financings and strategic investments outside the project finance space.

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Brian Zurawski is a partner in Baker McKenzie's Transactional Practice Group in Chicago. Brian advises on real estate and finance matters including joint ventures, acquisitions, dispositions, leasing and financing (representing both lenders and borrowers). Brian has extensive experience representing owners and potential purchasers of data centers, multi-family properties, industrial properties and office properties. Brian also has extensive experience representing owners and potential purchasers in connection with real estate matters affecting power and infrastructure projects (including natural gas, solar and wind projects).

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Avi Toltzis is a Knowledge Lawyer in Baker McKenzie's Chicago office.