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

On June 2, 2026, President Trump signed an executive order titled “Promoting Advanced Artificial Intelligence Innovation and Security” (the “Executive Order”). The Executive Order directs federal agencies to partner with the private sector to harden critical infrastructure systems against AI-enabled cyber threats. The Executive Order emphasizes voluntary participation by developers, pivoting from earlier deliberations about mandating government approval of new AI systems. Key aspects of the Executive Order include pre-release government review for advanced AI models (including providing the federal government with access to covered frontier models for up to 30 days before release to other trusted partners), an AI cybersecurity clearinghouse, enhanced enforcement of federal criminal statutes against AI-enabled cyber crimes, and directives for the Department of Defense and CISA to bolster the cyber defenses of federal systems. Apart from the pre-release review period, and influence on government procurement activities, the Executive Order does not contain any legally binding requirements or rights for companies. 

Background 

The Executive Order was issued against the backdrop of heightened concern about the cybersecurity implications of the latest generation of advanced AI models. Frontier model developers have recently begun to announce models with unprecedented capabilities to identify network vulnerabilities in widely used software that forms the backbone of the world’s critical network infrastructure.

US government officials, cybersecurity experts, and leaders in critical infrastructure sectors have expressed concern that improved models may threaten national security if they fall into the wrong hands. These recent breakthroughs prompted the Trump administration, which had formerly taken a hands-off approach to AI regulation, to advance efforts to create AI policy addressing a range of security questions. 

As the policy developed, it became a source of debate between administration officials who favored a light-touch approach to foster innovation and keep pace with AI advancements abroad and those who argued that the advanced technology required new guardrails for AI development. In late May, plans for a signing ceremony were cancelled at the last minute. The President suggested that he “didn’t like certain aspects” of the order and worried it would undercut US competition against China in the AI race.

Voluntary framework for frontier model review 

The Executive Order directs multiple federal agencies, including the Treasury, War, and Homeland Security Departments, to develop a classified benchmarking process and a voluntary engagement framework within 60 days. The Director of the NSA will then assess the advanced cyber capabilities of AI models and determine the threshold at which models should be designated “covered frontier models.”

Under the voluntary engagement framework, developers will be able to: (a) engage the federal government  to determine whether a model under development meets the designation of a covered frontier model; (b) provide the federal government with access to covered frontier models, subject to appropriate confidentiality, cybersecurity, insider-risk, and intellectual-property protection, use, and nondisclosure requirements, for a period of up to 30 days before they plan to release such models; and (c) collaborate with the federal government  to select trusted partners that will have early access to covered frontier models to strengthen the cybersecurity of critical infrastructure.  The Executive Order expressly states that the framework is voluntary and does not offer any particular rights, immunities from liability, trade secret protection, or resources to companies that choose to participate.

While the framework represents a novel approach to AI safety nationally, a number of jurisdictions globally, including Singapore, China, and South Korea, have introduced similar measures. Reporting suggested that the White House modelled the framework on a similar UK proposal currently under consideration.

Other Provisions

Building on recent cybersecurity Executive Orders 14144 and 14306, the Executive Order also directs rapid action to strengthen the cyber defenses of federal and critical infrastructure systems against AI-enabled threats. It also calls for Binding Operational Directives, expanded federal cybersecurity programs, and broader access to AI-enabled defensive tools and services for agencies, state and local governments, and critical infrastructure operators such as hospitals, banks, and utilities. In addition, the order requires the Treasury Department to establish an AI cybersecurity clearinghouse to coordinate vulnerability scanning, validation, remediation, and patch distribution in voluntary collaboration with industry and critical infrastructure operators. The Executive Order further directs the US Attorney General to prioritize the enforcement of applicable federal identity fraud, unauthorized computer access, and wire fraud laws against anyone who utilizes AI to illegally access or damage a computer without authorization.

The actions, agencies and timing of this whole-of-government approach are outlined in the table below.

Action Timeline Responsible agencies 
Prioritize cyber defense of National Security Systems  30 days (by July 2, 2026) Committee on National Security Systems 
Prioritize cyber defense of Department of War information systems  30 days (by July 2, 2026) Secretary of War 
Issue Binding Operational Directives and guidance to strengthen civilian federal cybersecurity and AI-enabled defenses  30 days (by July 2, 2026) Secretary of Homeland Security (through CISA), in consultation with OMB, National Security Advisor, and National Cyber Director 
Establish AI cybersecurity clearinghouse for vulnerability coordination and remediation  30 days (by July 2, 2026) Secretary of the Treasury, in consultation with NSA (via Secretary of War), CISA, and National Cyber Director
Assess availability of federal grant funding for AI vulnerability detection projects  30 days (by July 2, 2026) Director of OMB, in coordination with National Cyber Director and CISA 
Expand federal cybersecurity hiring pathways (Tech Force Information Cybersecurity Specialist)  60 days (by August 1, 2026) Director of the Office of Personnel Management 
Develop benchmarking process for AI cyber capabilities and “covered frontier model” designation  60 days (by August 1, 2026) Secretary of the Treasury; Secretary of War (through NSA); Secretary of Homeland Security (through CISA), in consultation with NCD, APST, NIST, and others 
Design voluntary framework for government engagement with AI developers (including early access to frontier models)  60 days (by August 1, 2026) Same interagency group led by Treasury, NSA, and CISA with White House and Commerce coordination 
Prioritize enforcement of federal criminal laws against AI-enabled cyber offenses Ongoing (effective immediately from June 2, 2026) Attorney General 
Author

Adam Aft helps global companies navigate the complex issues regarding intellectual property, data, and technology in product counseling, technology, and M&A transactions. He leads the Firm's North America Technology Transactions group and co-leads the group globally. Adam regularly advises a range of clients on transformational activities, including the intellectual property, data and data privacy, and technology aspects of mergers and acquisitions, new product and service initiatives, and new trends driving business such as platform development, data monetization, and artificial intelligence.

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Sumon Dantiki is co-chair of the Firm’s National Security Practice and a member of the Litigation and Government Enforcement Practice Group, based in the Firm's Washington, DC office. Sumon is widely recognized as a leading professional on issues involving security, technology and law. Sumon held several senior positions with the US Department of Justice (DOJ), including serving as Senior Counselor to the Director of the Federal Bureau of Investigation (FBI).

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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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William (Widge) Devaney is the chair of Baker's North American Litigation and Government Enforcement Group, and co-chair of its Global Disputes Group.

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Katherine (Kate) Hanniford is a partner in the Commercial Practice Group in Baker McKenzie’s Washington, DC office. Kate advises multinational companies on privacy and security issues across the data life cycle, including designing and implementing enterprise-wide privacy and security programs, compliance strategies, transactional privacy matters and regulatory enforcement. Kate has led large-scale incident responses involving public issuers, financial institutions, healthcare companies, broker-dealers and investment advisers, and has handled major breaches, including one of the largest attacks on US critical infrastructure in recent history.

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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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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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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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Elizabeth Roper is a partner in Baker McKenzie's North America Litigation and Global Dispute Resolution Practice. She is based in the New York office. Prior to joining the firm, Liz served in the Manhattan District Attorney's Office as Bureau Chief of the Cybercrime and Identity Theft Bureau (CITB). In this role, Liz directed the investigation and prosecution of all types of cybercrime impacting Manhattan, including sophisticated cyber-enabled financial crime such as identity theft, payment card fraud, and money laundering; network intrusions, hacking, ransomware, and "middleman" attacks; intellectual property theft; "dark web" trafficking of contraband; and the theft and illicit use of cryptocurrencies.

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Rod Rosenstein is a member of the North America Litigation & Government Enforcement Practice Group and the Global Dispute Resolution Practice Group, based in the Firm’s Washington, DC office. He is Chair of the Firm’s National Security Practice, a team of former US government officials, former prosecutors, trade practitioners, and data privacy and cyber lawyers. During the administrations of Presidents George W. Bush, Barack Obama and Donald Trump, Rod held senior political appointments as the Deputy Attorney General of the United States, US Attorney for the District of Maryland, and Principal Deputy Assistant Attorney General for tax enforcement in the US Department of Justice.

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Cyrus Vance Jr. is a partner in Baker McKenzie's North America Litigation and Government Enforcement Practice as well as the Firm's Global Compliance and Investigations Practice. He is based in New York and serves as Global Chair of the Cybersecurity Practice.