The discussion around artificial intelligence (AI) regulation is increasingly becoming a tug-of-war between federal and state governments in the United States. As an entrepreneur running my own startups and engaging in tech policy debates, I find this development fascinating because it represents both significant challenges and opportunities for startups, not just in the U.S., but also globally.
AI is no longer a distant concept for entrepreneurs. It has become a key tool in business strategy, operations, and even customer engagement. Yet, the way AI will be governed remains uncertain, especially when states have already started enacting their own rules while federal efforts remain slow-moving.
Federal vs. State: A Closer Look
As of late 2025, 38 U.S. states have enacted over 100 AI-related laws, as reported by the National Conference of State Legislatures. These laws touch on issues like transparency, deepfakes, and AI in government processes. While this sounds like progress, many of these regulations impose few substantive requirements on AI developers. On the other hand, some states such as New York and California have established stricter frameworks.
Meanwhile, at the federal level, there’s a push for a unified approach. A proposed national standard aims to replace varying state regulations to avoid what the tech industry calls a “regulatory patchwork.” Leading the charge is a lobbying group called Leading the Future PAC, backed by influential names such as OpenAI and Palantir co-founder Joe Lonsdale. Their goal? To centralize AI regulation under a single federal umbrella.
For startups like mine, this debate impacts everyday decisions. Imagine developing an AI-powered product in Europe or Asia, only to later encounter inconsistent rules when expanding to the U.S. Do you create one version of your tech for California and another for Texas? Or do you set aside valuable resources to ensure compliance in every state? These are tricky questions, especially for smaller companies.
What Startup Founders Should Know
Here’s why this regulatory landscape matters as much to European female entrepreneurs as it does to big tech or policymakers:
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Cross-Border Expansion Will Be Complicated Without Standardization
If exporting your innovation to the U.S., know that state-by-state regulations could create hurdles. For instance, a “high-risk” AI system may face disclosure rules in Texas but additional compliance costs in California. -
Patchwork Laws May Influence Global Markets
The U.S. isn’t the only country grappling with AI regulation. Europe is already shaping its AI Act with categories of risk, but if U.S. states retain individual AI laws, global compliance could demand adjustments to products and services, something early-stage startups often lack the bandwidth for. -
Lobbying by Larger Companies Could Squeeze Small Founders
The push for federal preemption mirrors some tech industry practices we’ve seen in Europe, where big players leverage their influence to favor rules that suit them over consumers or smaller startups.
Common Pitfalls for European Entrepreneurs
Avoid these missteps if you’re looking to navigate AI governance as part of your startup strategy:
- Underestimating Regulatory Costs: Assuming that compliance only applies domestically can backfire if you scale internationally.
- Ignoring State-Level Dynamics in the U.S.: Even in a post-Brexit Europe, understanding America’s fragmented system is crucial. Your AI-powered product might fall into different categories depending on which state you operate in.
- Not Prioritizing Ethics in AI Development: Legislative and public scrutiny over ethical AI is likely to grow. Developing robust safety and transparency mechanisms now makes good business sense for building trust.
Lessons Learnt from Founding a Bootstrapped Startup
As someone navigating industries like AI and blockchain on a lean budget, I’ve had to be resourceful. I often reflect on the asymmetry that exists between large tech businesses and startups. Startups innovate rapidly but frequently don’t have the luxury of creating an entire legal department. This is why collaboration and shared learning are essential.
For example, connecting with communities such as Fe/male Switch (which I founded) allows female entrepreneurs to discuss challenges, share free resources, and talk about issues like scaling AI compliance globally. Building these networks early will help you manage the turbulent waters of new regulations.
How to Navigate This Debate as a Female Entrepreneur
If your business incorporates AI, or might in the future, here’s a step-by-step plan to stay prepared:
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Research the Basics
Read platforms like TechCrunch’s report for updates on AI trends and legal debates. Knowledge of these dynamics gives you clarity on how to structure your strategy. -
Prioritize Compliance Early
Seek legal advice or collaborate with organizations like Women in AI, which often host regulatory workshops. Proactive adaptation is less expensive than waiting for lawsuits. -
Start Small
If you’re localizing your tech for the U.S., focus on a single region or state where you can acquire traction while ensuring legal compliance. -
Document Your Processes
This will cover you if laws change. Consumer safety plans, operating procedures for ethical AI use, and robust testing data could all save you trouble.
The Road Ahead for European Founders Venture Capital Funding
Despite these regulatory challenges, investments in AI are booming. For entrepreneurs, familiarizing themselves with emerging trends in AI and compliance can unlock access to EU funding and global grants.
Wrapping Up
AI regulation is the kind of issue that shakes up industries but also sparks innovation (oops, almost used THAT word). Whether the U.S. adopts unified federal rules or states continue to lead the charge, entrepreneurs must stay vigilant. By leveraging tools, building networks, and keeping compliance in check, female founders across Europe can turn challenges into competitive advantages.
So tell me, where do you see your business in this AI-driven future? Let’s prepare together.
FAQ
1. What is the debate over AI regulation in the U.S. about?
The main debate centers on whether artificial intelligence should be regulated at the federal level or by individual states. Federal regulation supporters argue it prevents a "patchwork" of inconsistent state regulations, while states see it as necessary for addressing local concerns quickly. Explore TechCrunch's coverage of the debate
2. How many AI-related laws have been passed by U.S. states?
By late 2025, 38 states had passed over 100 AI-related laws, addressing issues like transparency, deepfakes, and government use of AI. These laws vary significantly in their requirements. Check out NCSL AI legislation data
3. What does the tech industry say about state-level AI regulations?
The tech industry criticizes state-level laws, claiming they create regulatory hurdles that could stifle innovation and hurt U.S. global competitiveness. Learn more about the industry's stance through TechCrunch
4. What is the "RAISE Act" introduced in New York?
The RAISE Act mandates large AI labs to have safety plans to prevent harms and ensure responsible AI deployment. It highlights New York's efforts to lead in addressing AI risks.
5. What role do PACs like Leading the Future play in this debate?
Leading the Future, backed by Silicon Valley leaders, pushes for federal AI regulation to preempt state laws, citing the need for unified national standards. They’ve launched multi-million-dollar campaigns to sway policymakers. Learn about Leading the Future's initiatives
6. Has there been any federal legislative progress in AI governance?
Federal efforts to regulate AI have been slow, with no comprehensive legislation passed as of late 2025. Congress entities are considering bills like the National Defense Authorization Act to centralize policy. Explore potential federal AI policies
7. How does Europe’s approach to AI regulation differ from the U.S.?
Europe is leading AI regulation globally, aiming for a harmonized system under the EU AI Act. U.S. state-by-state laws make global compliance more complicated for startups expanding into the U.S. Learn about the EU AI Act
8. What are the risks of a federal AI preemption law?
Critics argue that a federal preemption could weaken consumer protections by nullifying state-led efforts. It also risks delaying innovative and stricter state-level regulations.
9. How can compliance with AI laws impact startups?
Startups face increased costs and complexity due to varying state laws. They may need to adjust their technology to meet compliance standards, creating additional expenses, especially for global scalability.
10. How can female entrepreneurs prepare for AI regulation?
Female entrepreneurs can prepare by prioritizing compliance, networking within collaborative groups like Women in AI, and staying informed about state and international AI laws. Visit Women in AI for resources
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
