Trump's AI Executive Order: New AI Voice Rules and Insurance Compliance Impact
President Trump recently signed an Executive Order targeting state AI laws - but if you’re worried about AI voice compliance or insurance agent TCPA compliance, here’s what you need to know: the federal rules haven’t changed. AI Voice calling still requires prior written consent under the FCC’s February 2024 ruling, and insurance companies are still considered high-risk under state AI regulations.
What the Executive Order Actually Does
The order creates a task force at the Department of Justice to sue states over their AI laws. It also tells federal agencies to look at withholding funding from states with strict AI rules and asks the FTC and FCC to issue guidance that could override state requirements.
The order specifically calls out Colorado's AI law as an example of what the administration considers overreach. That law requires companies using AI for "consequential decisions", including insurance decisions, to prevent algorithmic discrimination and disclose when AI is being used. For a deeper dive into the Colorado AI rule, see our Preparation Guide for Lead Generators.
The Trump administration's position is that these state laws create a patchwork of 50 different rule sets that make it impossible for AI companies to operate efficiently. This is the same issue which insurance lead generators and other companies are trying to navigate the multiple state’s privacy rules.
Why Insurance Is in the Crosshairs
Insurance is classified as "high-risk" under most AI regulations because decisions about coverage, pricing, and claims directly affect people's lives. When an AI system decides whether to approve your application or how much you'll pay, that's considered a "consequential decision" that triggers extra rules.
Colorado's Law (Effective June 2026)
Colorado's AI Act requires anyone using AI for insurance decisions to have a risk management program, conduct yearly assessments, tell consumers when AI affects decisions about them, and report discrimination problems to the state within 90 days.
This applies whether you built the AI yourself or bought it from a vendor. If you're using AI lead scoring, automated underwriting, or AI-powered customer service, you're likely covered.
NAIC Guidelines (Already in Effect in 24 States)
The National Association of Insurance Commissioners put out guidelines in 2023 that 24 states have now adopted. These require insurers to have written AI programs, maintain governance structures, manage vendor relationships carefully, and be ready to show regulators how their AI systems work.
The key point: you're responsible for AI systems your vendors use on your behalf. If your lead gen partner uses AI to qualify leads, that could create compliance obligations for you.
AI Voice Compliance Rules: What Hasn’t Changed
If you're using AI voice technology to generate or contact leads, you're dealing with multiple overlapping regulations that the Executive Order doesn't touch.
AI Voice TCPA Compliance (FCC 2024 Ruling)
In February 2024, the Federal Communications Commission clarified that AI-generated voices count as "artificial or prerecorded" under the Telephone Consumer Protection Act. That means you need prior written consent before making AI voice marketing calls. Violations run $500 to $1,500 per call.
This is federal law. The Executive Order doesn't change it, and preemption efforts won't affect it.
FTC Is Watching Voice Cloning
The Federal Trade Commission has made AI voice cloning a priority. They've said clearly that there's "no AI exemption" from consumer protection laws. Impersonation scams using voice cloning cost consumers over a billion dollars in 2023, so expect continued enforcement attention here.
What This Executive Order Doesn't Do
Here's what you need to understand: executive orders can't actually preempt state laws. Only Congress or the courts can do that. Even Governor DeSantis, a Trump ally, pointed this out publicly.
The order creates a process to challenge state laws, but those challenges will take months or years to work through the courts. Meanwhile, state laws stay on the books and enforceable.
The administration tried to get Congress to pass AI preemption twice this year—once in the budget bill and once in the defense authorization. Both failed. So for now, we're in a waiting game.
Insurance Agent Compliance Action Steps
Keep Your Compliance Programs Going
Don't use this Executive Order as an excuse to pause compliance work. Colorado's law kicks in February 1, 2026, and absent a court injunction, it will be enforced. The NAIC guidelines are already active in half the states.
Companies that scale back now based on hoped-for preemption could find themselves scrambling if the legal challenges take longer than expected.
Document What You're Doing
Good documentation helps you under any regulatory scenario. Keep records of what AI systems you use, how you tested them for bias, what vendors you work with and how you vetted them, and how you're handling consumer disclosures.
This isn't just about checking boxes. If something goes wrong, documented good-faith efforts to prevent harm can make a real difference in enforcement outcomes.
Update Your Consent Language
If you're using AI voice calling, make sure your consent forms clearly cover automated and AI-generated calls. The FCC is likely to require AI-specific disclosures soon, so getting ahead of this is smart. We covered the current state of the FCC’s AI voice rules in detail in AI Hype to Regulatory Reality: Understanding TCPA for AI Compliance.
Check Your Vendors
Review what AI tools your lead generation partners are using. Under both the NAIC guidelines and state laws like Colorado's, you can be held responsible for AI systems deployed on your behalf. Make sure your contracts include audit rights and require vendors to cooperate with regulatory inquiries.
What to Watch For
90-Day Deadlines: The FTC and FCC are supposed to issue policy statements within 90 days. These could clarify when federal law overrides state requirements.
Lawsuits: Watch for the new task force to file challenges against state AI laws. Early court decisions will signal whether the preemption strategy has legs.
Congressional Action: The order asks for legislative recommendations. If Congress passes actual preemption legislation, that changes everything.
State Responses: Some states might accelerate enforcement before federal preemption kicks in. Others might wait and see.
Bottom Line
This Executive Order is a statement of intent, not an immediate change in the rules. If you're using AI for lead generation or voice calling in insurance, you're still operating under the same laws you were last week.
The smart play is to stay compliant with current requirements while keeping an eye on how the legal battles play out. The regulatory picture will probably look different in a year or two, but nobody knows exactly how yet.
