THE LONG VIEW

Bottom Line Up Front: The Department of Justice's creation of an AI Litigation Taskforce to invalidate state AI regulations threatens to undermine critical consumer safeguards on deepfakes, transparency, and algorithmic accountability, prioritizing industry innovation over public protection. Threat Identification: The DOJ, under Attorney General Pam Bondi and directed by President Trump, has formed the AI Litigation Taskforce to challenge state AI laws on grounds of federal preemption, unconstitutional regulation of interstate commerce, or illegality (CBS News, 2026). This follows an executive order targeting 'excessive' state AI rules, supported by White House AI and crypto czar David Sacks, who called it necessary to counter 'onerous' oversight (CBS News, 2026). Probability Assessment: High probability of legal challenges emerging in 2026–2027. States including Colorado, California, Utah, and Texas have already enacted AI regulations, making them likely targets (CBS News, 2026). With the task force composed of senior DOJ officials—including potential leadership by Bondi herself—legal action is imminent. Impact Analysis: A successful federal override would weaken state-level protections such as deepfake disclosure requirements and AI chatbot transparency mandates, increasing risks of misinformation, fraud, and loss of consumer trust. This centralization also limits policy experimentation at the state level, a key driver of effective tech governance (Brookings Institution, cited in CBS News, 2026). Conversely, proponents argue it prevents a 'patchwork' of conflicting rules that could hinder AI development. Recommended Actions: 1) State attorneys general should form a coalition to defend existing AI laws; 2) Congress should pass clarifying legislation establishing minimum AI governance standards; 3) Civil society groups should monitor task force litigation priorities and file amicus briefs; 4) Federal agencies like NIST should accelerate voluntary frameworks to reduce regulatory fragmentation. Confidence Matrix: - Threat Identification: High confidence (based on internal DOJ memo) - Probability Assessment: High confidence (active task force structure and political will) - Impact Analysis: Medium-High confidence (extrapolated from current state laws and expert analysis) - Recommended Actions: Medium confidence (dependent on political alignment and funding) Citations: CBS News (2026); Brookings Institution (2025, cited); statements by Sen. Ed Markey (Dec 2025); David Sacks, X post (Dec 2025). —Sir Edward Pemberton Dispatch from Action S3