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    AI in the United States: the rules, the readiness and where to start

    Last checked: 29 October 2026

    What should a company in United States know before starting with AI?

    The United States has no federal AI law and no general federal privacy law as of 29 October 2026. Federal policy, set by executive orders, favours light regulation and is trying to limit state AI laws, while the FTC applies its existing ban on deceptive practices to AI claims. The rules that bite today are state rules, such as California's CCPA regulations on automated decisionmaking technology and Colorado's new law, SB 26-189.

    At a glance

    United States at a glance

    Key facts about United States
    Data protection lawNo general federal privacy law. State laws apply, such as the California Consumer Privacy Act (CCPA) and its regulations, in force
    RegulatorFederal Trade Commission (federal, consumer protection); state bodies such as the California Privacy Protection Agency and state attorneys general
    AI policyExecutive Orders 14179 (January 2025) and 14365 (December 2025). No federal AI law as of 29 October 2026
    Time zoneSeveral zones. Eastern UTC-4 and Pacific UTC-7 until 1 November 2026, then UTC-5 and UTC-8 (India is 9.5 to 13.5 hours ahead)
    CurrencyUSD (US dollar)
    Business languageEnglish

    Why now

    Why United States is worth watching

    Each point links to the document it comes from.

    • Executive Order 14179 of 23 January 2025 revoked the 2023 AI order (EO 14110) and set a policy of sustaining US AI dominance.[1]

    • Executive Order 14365 of 11 December 2025 set up a Justice Department task force to challenge state AI laws that conflict with federal policy.[2]

    • On 20 March 2026 the White House sent Congress a National Policy Framework for AI that would preempt many state AI laws. It is a proposal, not law.[10]

    • On 1 July 2026 the FTC voted 2 to 0 to seek comment on a policy statement saying undisclosed steering of AI outputs can be deceptive under Section 5 of the FTC Act.[5]

    • Colorado repealed its 2024 AI Act and replaced it with SB 26-189 on automated decision-making technology, signed on 14 May 2026.[7]

    • California businesses that use automated decisionmaking technology for significant decisions must comply with the new CCPA rules by 1 January 2027.[9]

    The rules

    The rules that matter for AI

    What each law or policy means when you build or buy an AI system.

    Executive Order 14365, Ensuring a National Policy Framework for Artificial Intelligence

    In force2025It binds federal agencies, not private companies. It told the Attorney General to form an AI Litigation Task Force, told Commerce to list burdensome state AI laws, and tied some broadband grant money to states not enforcing them. Later orders in June and September 2026 dealt with AI cybersecurity and with renaming AI as 'Super Intelligence' in federal documents; the fact sheets describe no new duties for businesses.[2]

    FTC Act, Section 5 (unfair or deceptive practices)

    In force1914The FTC uses its existing powers against misleading AI claims. In August 2025 it finalised an order against Workado, which sold an AI content detector, requiring competent and reliable evidence for any accuracy claim. A proposed policy statement from July 2026 adds that hiding ideological steering of AI outputs can be deceptive.[6]

    California CCPA regulations on automated decisionmaking technology (ADMT)

    Phased2025The regulations took effect on 1 January 2026, and the ADMT article applies from 1 January 2027 to businesses already using it. A business covered by the CCPA that uses ADMT for a significant decision must give a pre-use notice and handle opt-out and access requests. Significant decisions cover lending and financial services, housing, education, employment and health care services.[9]

    Colorado SB 26-189, Automated Decision-Making Technology

    Passed, not yet in force2026It replaced the 2024 Colorado AI Act. From 1 January 2027 developers must give deployers documentation, deployers must tell consumers when ADMT is used in consequential decisions, and after an adverse decision they must explain its role within 30 days. Consumers can ask for their data, correct errors and request human review. The Attorney General enforces it, with a 60-day cure period before 2030.[7]

    Where AI fits first

    Where AI fits first

    Lending and financial services

    Document checks, fraud screening and drafting credit memos, with a person signing off on approvals and denials.

    Lending decisions are significant decisions under the California ADMT rules and consequential decisions under Colorado SB 26-189, so notices and human review apply.[9]

    Hiring and HR

    Summarising applications and scheduling interviews, rather than ranking or rejecting candidates automatically.

    Employment and contracting decisions are covered by both the California ADMT rules and the Colorado law. Other states and cities have their own rules that we did not review here.[7]

    Health care

    Drafting visit notes and handling prior authorisation paperwork, with clinicians making decisions.

    Health care services are a significant decision area under the California ADMT rules. Federal health privacy rules also apply and were not reviewed in this guide.[9]

    Software and AI products

    Customer support assistants and content tools sold to other businesses.

    Any accuracy or capability claim needs evidence before it is made, as the FTC's Workado order shows.[6]

    Your first steps

    Your first steps

    1. List the states where your customers, staff and applicants live, because state law sets most AI duties.
    2. Mark every place AI helps decide on credit, housing, jobs, education or health care. These are the uses covered by California and Colorado.
    3. If you are covered by the CCPA, prepare pre-use notices and an opt-out and access process before 1 January 2027.
    4. If you serve Colorado consumers, plan notices, adverse-decision explanations within 30 days and a human review route before 1 January 2027.
    5. Check every marketing claim about your AI against test results you can show the FTC.
    6. Keep records of training data sources, known limits and human review steps; Colorado requires records for at least three years.
    7. Watch the Colorado Attorney General rulemaking and any federal preemption bill, as both could change your duties.

    AI services for United States

    AI consulting and development for teams in United States

    We work remotely with companies in United States, in your time zone, and keep your data under the rules described above.

    AI agents and automation

    Agents that finish multi-step work across your tools, with people approving what matters.
    Learn more

    Document Q&A (RAG)

    Answers from your own documents, with the source shown for every answer.
    Learn more

    AI governance and data protection

    Policies, review steps and audit trails that fit your local data law.
    Learn more

    Software and cloud engineering

    Web apps, integrations and cloud platforms built around your AI use case.
    Learn more

    How we work with you

    How we work with you

    We work remotely with clients worldwide, in the client's time zone. Until 1 November 2026 US Eastern time is UTC-4 and Pacific is UTC-7; India is UTC+5:30, so India is 9.5 and 12.5 hours ahead. An Indian day of 9:30 to 18:30 ends at 09:00 Eastern or 06:00 Pacific, so there is no overlap in normal office hours, and from November the gap grows by one hour. We agree a short daily call early in your morning, which is evening in India, and send written updates so you start each day with progress to review.

    Questions

    Common questions about AI in United States

    Is there a federal AI law in the United States?

    No, not as of 29 October 2026. Federal AI policy comes from executive orders, which mainly direct federal agencies. The White House has asked Congress to pass a national framework that would preempt many state AI laws, but it had not been enacted when we checked.

    Does the Colorado AI Act still apply?

    The 2024 Act was repealed and replaced by SB 26-189, signed on 14 May 2026. The new law focuses on automated decision-making technology in consequential decisions, and its main duties start on 1 January 2027. The Attorney General is writing rules for it.

    We are not in California. Do the ADMT rules apply to us?

    They apply to businesses covered by the CCPA, which can include out-of-state companies that do business in California and meet its thresholds. Check the thresholds with a lawyer.

    Can the federal government block state AI laws?

    Executive Order 14365 tells federal agencies to challenge state laws in court and to use grant conditions. An order cannot repeal a state law by itself. Only Congress or a court can do that, so state laws apply until then.

    Complimentary tools

    Try these first

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    AI readiness score

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    AI use case triage

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    Read next

    Sources

    Sources

    Facts checked on 29 October 2026. Numbers in square brackets above match this list.
    1. [1] The White House, 2025-01-23. Removing Barriers to American Leadership in Artificial Intelligence (Ex…(whitehouse.gov)
      Full title and what we used it for

      Removing Barriers to American Leadership in Artificial Intelligence (Executive Order 14179). Primary. Used for the signing date and the revocation of Executive Order 14110.

    2. [2] The White House, 2025-12-11. Ensuring a National Policy Framework for Artificial Intelligence (Execu…(whitehouse.gov)
      Full title and what we used it for

      Ensuring a National Policy Framework for Artificial Intelligence (Executive Order 14365). Primary. Used for the AI Litigation Task Force, the Commerce review of state laws, grant conditions and the FTC and FCC tasks.

    3. [3] The White House, 2026-06-02. Fact Sheet: President Donald J. Trump Promotes Advanced Artificial Inte…(whitehouse.gov)
      Full title and what we used it for

      Fact Sheet: President Donald J. Trump Promotes Advanced Artificial Intelligence Innovation and Security. Primary fact sheet, not the order text. Used for the June 2026 order on AI cybersecurity, which describes voluntary industry participation and no duties for businesses that use AI.

    4. [4] The White House, 2026-09-29. Fact Sheet: President Donald J. Trump Inaugurates the Era of Super Inte…(whitehouse.gov)
      Full title and what we used it for

      Fact Sheet: President Donald J. Trump Inaugurates the Era of Super Intelligence. Primary fact sheet. Used for the September 2026 order changing federal terminology from AI to Super Intelligence. It describes no requirements on private companies.

    5. [5] Federal Trade Commission, 2026-07-01. FTC Seeks Public Comment on Policy Statement Addressing AI Accuracy(ftc.gov)
      Full title and what we used it for

      FTC Seeks Public Comment on Policy Statement Addressing AI Accuracy. Primary. Used for the 2 to 0 vote, the Section 5 theory and the comment deadline of 31 July 2026. We did not find a final version of the statement.

    6. [6] Federal Trade Commission, 2025-08-28. FTC Approves Final Order against Workado, LLC, Which Misrepresented the…(ftc.gov)
      Full title and what we used it for

      FTC Approves Final Order against Workado, LLC, Which Misrepresented the Accuracy of its Artificial Intelligence Content Detection Product. Primary. Used as an example of FTC enforcement against unsupported AI accuracy claims.

    7. [7] Colorado General Assembly, 2026-05-14. SB26-189 Automated Decision-Making Technology(leg.colorado.gov)
      Full title and what we used it for

      SB26-189 Automated Decision-Making Technology. Primary bill page and summary. Used for the signing date, the repeal of SB 24-205, the duties starting 1 January 2027, consumer rights, records and the cure period. Law-firm reviews (for example Skadden, June 2026) were read for interpretation only.

    8. [8] California Privacy Protection Agency, 2025-09-22. CCPA Updates, Cybersecurity Audits, Risk Assessments, Automated Decisio…(cppa.ca.gov)
      Full title and what we used it for

      CCPA Updates, Cybersecurity Audits, Risk Assessments, Automated Decisionmaking Technology (ADMT), and Insurance Companies. Primary. Used for the approval on 22 September 2025 and the effective date of 1 January 2026.

    9. [9] California Privacy Protection Agency, 2025-09-22. Text of Regulations (CCPA Updates, Cyber, Risk, ADMT, and Insurance Reg…(cppa.ca.gov)
      Full title and what we used it for

      Text of Regulations (CCPA Updates, Cyber, Risk, ADMT, and Insurance Regulations). Primary. Read in full text. Used for the definition of significant decision (section 7001) and the compliance date and pre-use notice in sections 7200 and 7220.

    10. [10] Sullivan and Cromwell, 2026-03-20. Trump Administration Releases National Policy Framework on Artificial I…(sullcrom.com)
      Full title and what we used it for

      Trump Administration Releases National Policy Framework on Artificial Intelligence. Law-firm summary, used for interpretation. Used for the release date and that the framework is a legislative proposal, not law.

    11. [11] Squire Patton Boggs, 2026-05-01. The Colorado AI Act Hits a Wall: Litigation, Legislative Uncertainty an…(aihub.squirepattonboggs.com)
      Full title and what we used it for

      The Colorado AI Act Hits a Wall: Litigation, Legislative Uncertainty and an Enforcement Standstill. Law-firm summary, used for background only: the xAI lawsuit against the 2024 Act and the stay of enforcement on 27 April 2026. We did not confirm how that case affects SB 26-189.

    This is general information, not legal advice. US AI rules are changing fast at both federal and state level, and this guide covers only a few states. Check with a qualified US lawyer before you act. Facts checked on 29 October 2026.

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