The specific language of the Trump America AI Act remains in draft form and has not been formally introduced. The extent to which the transparency bill and the preemption framework will align—or conflict—on issues like copyright liability and Section 230 reform is still unclear.
These moves respond to regulatory fragmentation. Over 600 AI bills were introduced in state legislatures in the first quarter of 2026 alone, including Colorado's AI Act and California's CCPA amendments. The European Union's AI Act takes binding effect in August 2026, creating a third regulatory regime. For multinational companies and their counsel, the next 90 days will determine whether Congress imposes a single federal standard or leaves the patchwork intact. A February ruling from the Southern District of New York also bears watching: the court held that using AI tools to process privileged information can waive attorney-client privilege, a risk that will intensify if AI disclosure requirements expand.