AI Legislation Expands Across 50 States, 1,000 Bills Pending in 2025

The Trump administration has introduced a deregulatory approach to artificial intelligence (AI) policy with the July 2025 release of the AI Action Plan, emphasizing innovation and minimizing bureaucratic hurdles to maintain U.S. global leadership in AI. This plan implicitly discourages states from imposing restrictive AI regulations by withholding federal AI funding from those with 'burdensome' laws, reflecting a shift from the prior Biden administration’s policies. Meanwhile, states like Colorado are grappling with their own AI regulations; Colorado’s pioneering AI law requires companies to perform bias risk assessments and disclose AI decision-making processes, but Governor Jared Polis has called for its delay or modification to provide more clarity and avoid stifling innovation. Across the country, legislative use of AI tools has surged from 20% in 2024 to 44% in 2025, yet most state legislatures lack formal policies guiding AI usage among lawmakers and staff, raising concerns about misinformation, bias, and security. Some states, such as Washington, have begun implementing AI use policies to address these risks, but overall governance remains inconsistent amid rapid AI adoption in legislative processes. These developments highlight the tension between fostering AI innovation and ensuring responsible oversight at both federal and state levels.