Home Leadership Advice AI Regulation Is Getting Messy: How to Lead Through the Crossfire

AI Regulation Is Getting Messy: How to Lead Through the Crossfire

The AI Power Struggle No One Can Ignore Anymore

You can feel it, right?

That creeping sense that the ground beneath AI policy is shifting faster than anyone can keep up. And guess what? You’re not imagining it.

The latest reports about a potential Trump Administration executive order—one that would override state AI laws, weaponize federal funding, and launch an entire litigation force to challenge state-level AI regulation—signal something deeper than politics.

They reveal the real crisis in AI right now: a clarity crisis.

The biggest crisis… is existential.

Federal vs. state. U.S. vs. EU. Rhetoric vs. reality.

And ambitious leaders—CISO, CAIO, CPO, founders, policy architects—are left navigating a fragmented regulatory maze while building technology that moves at the speed of imagination.

Sound familiar?

This is no longer a conversation about policy.

This is a battle for philosophical ground.

For who sets the standard.

For who holds responsibility.

For who shapes the future of intelligence.

And if you don’t step into that conversation with intention, the chaos will define your strategy for you.

Let’s get into it.

Why the Government Is Suddenly Fighting Over AI Laws

The short version:

States started making AI laws.

The federal government didn’t love that.

Now they’re preparing to fight back.

According to multiple reports, the proposed executive order would:

  • Override state AI laws that conflict with federal policy
  • Threaten to withhold federal funding from states that push their own rules
  • Launch an “AI Litigation Task Force” inside the Department of Justice
  • Call for federal AI disclosure standards that preempt state requirements

The document specifically targets California’s SB 53—one of the strictest transparency requirements for AI model developers—calling it “complex and burdensome.”

Translation:

The federal government wants one playbook.

States are writing their own.

And now the tug-of-war begins.

But here’s the part leaders need to pay attention to…

This isn’t about regulation.

It’s about control.

The Hidden Truth: State vs. Federal Is Just the Surface-Level Battle

There’s a deeper war unfolding, and it’s the one your organization actually needs to prepare for.

Policy experts already agree:

Even if federal preemption happens, it won’t magically simplify AI governance.

Because model developers don’t live in state lines.

They don’t live in federal boundaries.

They live in global ecosystems.

While the U.S. wrestles with itself, the EU just announced plans to dial back its landmark GDPR and even water down the EU AI Act.

Let that sink in.

The West is quietly—but unmistakably—shifting toward a deregulatory posture.

Not because it wants to.

But because the technology is evolving faster than anyone can legislate.

And here’s the kicker:Regulation that can’t keep up becomes noise, not guidance.

So where does that leave leaders?

In exactly the place Cristina DiGiacomo predicted:

A philosophical vacuum where clarity, wisdom, and responsibility must become your internal compass.

The Myth of “Just Wait for Policy”

If you’re waiting for Washington, Sacramento, Brussels, or anyone else to hand you a stable AI governance roadmap…

You’re going to be waiting a long time.

Here’s the truth nobody in these political headlines will say out loud:

Regulators don’t understand the velocity of the models.

And the models don’t slow down for regulators.

And companies don’t stop building because the rules are unclear.

So leaders are stuck in the middle of a philosophical dilemma disguised as a legal one:

How do you build safely when the rulebook keeps rewriting itself?

And

How do you lead wisely when the ground won’t stop moving?

The answer isn’t in policy.

It’s in principle.

The 10+1™ Lens: The Only Stable Framework in an Unstable Policy World

Look—I’m not here to litigate politics.

I’m here to show you the wisdom layer beneath this mess.

Because policy is temporary.

Philosophy is perennial.

And this is exactly where The 10+1 Commandments of Human AI Co-Existence™ become your greatest strategic asset.

Let’s map what’s happening right now to the principles:

Own AI’s Outcomes

While governments debate who controls AI, this commandment makes it simple:

You are responsible for the impact of the AI you use.

Not the state.

Not the feds.

Not the vendor.

You.

Your team.

Your organization.

If you’re waiting for DC to tell you where your accountability begins, you’re already behind.

Respect AI’s Limits

Regulators keep assuming AI can be “contained” through laws.

Meanwhile, the models evolve beyond the assumptions written into those laws.

This is why blind compliance isn’t enough.

You need internal calibration.

You need review cycles.

You need drift detection.

You need human-in-the-loop governance.

Because AI does not stay static long enough for policy to stay relevant.

Allow AI to Improve

AI improves because you train it.

And right now, the regulatory chaos means developers, states, and federal bodies are all pushing conflicting signals into the system.

If you’re not controlling the inputs, models will learn from the noise.

This is how unintended consequences happen.

This is how bias creeps in.

This is how governance failures emerge.

AI reflects instruction—so lead with clarity, not confusion.

10+1. Be the Steward, Not the Master

This is the one leaders need tattooed on their brain right now.

Stewardship means navigating uncertainty with wisdom, not force.

Not reacting to political swings.

Not outsourcing direction to policymakers who don’t understand the models.

Not surrendering your internal compass to the loudest voice in Washington.

Stewardship means:

  • Thinking deeply
  • Acting wisely
  • Moving intentionally
  • Asking the better question, not the easier one

Because wisdom, not regulation, is the stabilizer in chaos.

What This Regulatory Battle Means for AI Leaders (The Practical Breakdown)

Let’s bring this down from philosophy into actionable clarity.

Here’s what’s coming, and how to prepare.

1. Expect Conflicting Requirements

Whether this executive order drops or not, tension between states and the federal government is here to stay.

Prepare now by:

  • Building flexible governance structures
  • Modeling both strict and relaxed compliance scenarios
  • Creating decision trees for conflicting obligations

Don’t assume harmony.

Plan for friction.

2. Expect AI Transparency Requirements to Keep Shifting

SB 53 may be targeted, but transparency legislation is not going away.

Build your transparency process as if it must withstand:

  • State requirements
  • Federal requirements
  • EU requirements
  • Public expectations

Assume every model will need:

  • Data lineage documentation
  • Model nutrition labels
  • Deployment disclosures
  • User-facing explanations

Not because the law demands it, but because leadership does.

3. Expect Policy to Lag Behind Model Risk

This is the big one.

Models are scaling.

Capabilities are expanding.

Risks are multiplying in ways policymakers cannot anticipate.

Your organization’s internal governance must outpace the law—not follow it.

This means:

  • Internal risk frameworks
  • Scenario planning
  • Bias audits
  • Red-team rotations
  • Psychological + social impact reviews
  • LLM-specific governance practices

You cannot wait for regulators to tell you how to stay safe.

You must lead that conversation now.

4. Expect Deregulation to Coexist With Rising Public Fear

The paradox you must manage:

Governments pull back.

Capabilities explode.

Public anxiety climbs.

Misinformation spreads.

Trust erodes.

This is where human leadership matters more than technical excellence.

Because peace of mind costs nothing and impacts everything.

A Wise Leader’s Playbook for Navigating AI Policy Chaos

Here’s the clarity you came for.

1. Build governance anchored in principle, not politics.

Policy will shift.

Philosophy will not.

2. Adopt a “multi-jurisdictional posture.”

Design processes that can flex between strict, moderate, and deregulated environments.

3. Assume AI’s capabilities will leap faster than policymakers expect.

And build risk models accordingly.

4. Treat transparency as a brand value—not a compliance task.

High-trust companies win in chaotic markets.

5. Integrate The 10+1™ into your governance framework.

This becomes your internal constitution when the external laws keep changing.

So… What Should You Do Tomorrow Morning?

Let’s bring it down to the ground.

You wake up tomorrow and the executive order drops.

Or it doesn’t.

Or the EU pivots again.

Or California tightens.

Or Texas rebels.

Or Congress stalls.

Or the entire policy landscape flips in one week.

What should a wise leader do?

You pause.

You breathe.

You remember the order of operations:

Clarity. Thoughts. Decisions. Actions.

You review your principles.

Then your frameworks.

Then your obligations.

Then your risks.

Then your next steps.

This is wisdom in practice.

This is how you stay ahead—without letting chaos run your roadmap.

Let’s go.

Conclusion

The AI regulatory landscape isn’t stabilizing anytime soon.

If anything, it’s fracturing.

But leaders who anchor themselves in wisdom—not reaction—will navigate this era with clarity, confidence, and strategic advantage.

You don’t need certainty.

You need stewardship.

And if you want to deepen your approach, here are your next steps:

1. Download the Free 10+1 Framework

A powerful guide for grounding your AI strategy in timeless principles:

👉 www.10plus1executive.com

2. Explore Cristina’s AI Thought Leadership

Articles, insights, and wisdom at:

👉 www.10plus1.ai

3. Join Cristina’s C-Suite Network AI Council

Connect with leaders shaping the future of AI:

👉 pages.c-suitenetwork.com/the-ai-council

4. Connect with Cristina on LinkedIn

Build your network with intentionality:

👉 (9) Cristina DiGiacomo, M.S. | LinkedIn

Let wisdom lead.

Let clarity guide.

Let your organization rise above the noise.

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✪ 3,500 Years of Experience ✪ Cristina DiGiacomo had a successful, award-winning, twenty-year corporate and agency career in client engagement, strategy, and management roles at companies like The New York Times, Citigroup, AMC Networks, and R/GA. Her agency clients included SC Johnson, Verizon, Johnson & Johnson, The Travel Channel, Rogers Communications, Essence Magazine, Sony, and L'Oreal. She began studying Philosophy at The School of Practical Philosophy ten years ago, applying the ideas of the greatest thinkers of all time - spanning "3500 years" of knowledge and insight. She holds an M.S. in Organizational Change Management from The New School, enhancing her understanding of the impact and importance of change. She has been featured in Global Trade Magazine, Houston Style Magazine, The Young Upstarts, and was interviewed by Arianna Huffington's Thrive Global, Authority Magazine. She has upcoming features for Costco Connection, CEOWorld Magazine, and Flagstaff Business News. Her book “Wise Up! At Work” was a #1 Best-seller on Amazon for Modern Philosophy and a #1 New Release, and a Best-seller, in Business Management Skills. She has a podcast “Wise Up! With Cristina” where she interviews leaders about the issues facing business today. Her success is measured by the skills she provides to access the wisdom of great thinkers to benefit everyday tasks and strategic thinking. About MorAlchemy Get timeless ideas for challenging times. We're in a colossal shift with a relentless ripple effect - ideologically, culturally, organizationally, personally. Something major is happening, and I'm here to support you through that, bringing "3500 years of experience" and history of how we've risen above this before. As a Practical Philosopher, I work with business leaders and teams who have to tackle big challenges and use philosophy to teach them how to look at things differently, so they find unique solutions and deeper engagement, so their companies thrive. Working with me people experience new inspiration with their work, reconnect to the reason for what they do, and grow beyond the adversity they face.
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