Virginia Becomes First State to Use Agentic AI for Regulatory Streamlining

Virginia is launching a pilot program that will use artificial intelligence (AI) agents to streamline regulations — the first such effort in the country — and reinforce the state’s standing as a friendly place to do business.

Gov. Glenn Youngkin issued an executive order to deploy AI agents to review and streamline Virginia’s regulations. The tool will scan all regulations and guidance to identify areas where there are conflicts with the statute, as well as redundancies and complex and unclear language.

“We have made tremendous strides towards streamlining regulations and the regulatory process in the Commonwealth,” Youngkin said in a press release. “Using emergent artificial intelligence tools, we will push this effort further in order to continue our mission of unleashing Virginia’s economy in a way that benefits all of its citizens.”

The new executive order adds to two other 2022 orders, which had mandated Virginia agencies to streamline regulations by at least 25%.

To date, state agencies have already streamlined regulations by 26.8% on average and cut 48% of words in guidance documents.

The new executive order is expected to help agencies struggling to hit the 25% regulatory reduction goal and give a further boost to those that have already met or exceeded requirements. The goal is to ensure the streamlining is done “to the greatest extent possible,” according to the governor’s office.

See more: Tech Giants Seek 10-Year Freeze on State AI Rules

All States Now Have AI Bills or Laws

The launch comes as Congress removed a 10-year ban on state AI regulations that was part of President Donald Trump’s “One Big Beautiful Bill.”

At present, states are accelerating AI regulation. All 50 states plus D.C., Puerto Rico and the Virgin Islands introduced AI legislation in 2025, with more than half enacting measures covering areas such as algorithmic fairness, transparency and consumer protections, according to a blog post by the law firm Brownstein Hyatt Farber Schreck.

In California, major bills include SB 420, which will establish an AI bill of rights, and SB 243, which aims to protect minors from chatbot manipulations. There’s also AB 1018, which seeks to ensure AI systems exhibit fairness in housing and hiring decisions, according to Brownstein.

In New York, SB 6453 has passed both chambers to be the first state law to restrict “frontier” or advanced AI models, according to Brownstein. In Connecticut, SB 2 is a comprehensive AI bill that awaits final votes.

Texas, Colorado, Utah and Montana have already enacted AI laws, and uncertainty about their enforceability has been lifted, the law firm said.

Meanwhile, California’s Judicial Council is considering requiring all 65 courts to adopt policies governing generative AI use unless they ban it outright, according to Reuters. If adopted, it would be the largest court system in the country with an AI policy.

Other states where court systems already have an AI policy include Illinois, Delaware and Arizona. States considering adopting an AI policy for their courts include New York, Georgia and Connecticut.

Read more:

States Revive Efforts to Pass AI Laws After 10-Year Moratorium Dies in Congress

California Advances Bill Regulating AI Companions Amid Concerns Over Mental Health Issues

AI Regulations: Texas’ Sweeping AI Bill and the Vatican’s Policy