DeSantis says Florida can regulate AI despite Trump’s executive order: 'We have a right to do this'

Florida Gov. Ron DeSantis said President Trump’s recent executive order on AI does not preempt state regulation, arguing an executive order cannot block states and that preemption requires congressional legislation; he added Florida has the right to proceed and that much of the state proposal overlaps with federal aims. DeSantis last week rolled out a 'Citizen Bill of Rights for Artificial Intelligence' that would bar use of a person’s name, image or likeness without permission, protect against deepfakes and impose restrictions to protect children, and he indicated Florida would be prepared to defend its rules against Dormant Commerce Clause challenges. With Congress failing twice in the past six months to enact measures to bar state AI rules, the dynamic leaves open the risk of a regulatory patchwork and ongoing compliance uncertainty for AI firms unless a single federal standard is enacted.

Analysis

Florida Gov. Ron DeSantis publicly asserted that President Trump’s recent executive order on artificial intelligence does not preempt state regulation, stating an executive order "can’t block states" and that preemption requires congressional legislation. Last week DeSantis released a "Citizen Bill of Rights for Artificial Intelligence" proposing guardrails that would bar AI from using a person’s name, image or likeness without permission, protect against deepfakes and impose multiple restrictions aimed at protecting children.

The political backdrop shows Congress failed twice in the past six months to block state AI rules—efforts tied to the spending bill and the National Defense Authorization Act—while the White House is pushing for a single federal standard to avoid the burden of 50-state approvals. Sentiment signals classify the development as mildly negative and uncertain with a modest market-impact score (0.3), indicating regulatory risk rather than immediate market-moving news.

Implications include a rising likelihood of a regulatory patchwork that increases compliance complexity and potential litigation under the Dormant Commerce Clause, which DeSantis said Florida would be prepared to defend against. Investors should expect elevated enforcement risk for consumer-facing AI features (deepfakes, use of likeness) and should closely track state rule text, ensuing lawsuits, and any federal standardization effort that would materially change compliance costs.

Key Decisions for Investors

• Monitor Florida's rulemaking and the text of the 'Citizen Bill of Rights' plus any ensuing state statutes and litigation over the Dormant Commerce Clause, as these outcomes will define near-term compliance obligations
• Reduce exposure or hedge positions in pure-play AI companies that rely on unrestricted use of personal likeness or data and lack established compliance or legal teams, since multi-state restrictions could materially raise costs
• Favor larger platform and enterprise AI vendors with existing regulatory, legal and compliance resources and active federal engagement, as they are better positioned if a single federal standard emerges
• Consider selective exposure to vendors offering deepfake detection, identity-consent management and content-moderation tools, which could see increased demand if state guardrails proliferate