Why Trump’s ‘Big, Beautiful Bill’ is a threat to AI regulation?

A sweeping legislative package backed by President Donald Trump, dubbed the “Big Beautiful Bill,” has passed the House by a razor-thin margin and now heads to the Senate — with one of its most contentious provisions aiming to halt state-level regulation of artificial intelligence (AI). The bill, exceeding 1,000 pages, includes a $500 million investment over the next decade to modernise federal systems with AI and automation. But buried within is a sweeping federal preemption clause that would ban states from enacting or enforcing their own AI regulations — a move that has sparked concern among lawmakers and advocacy groups alike.