MON AM News: Wisconsin lawmakers eye AI regulations despite Trump effort to curtail them; Talking Trade with John Min, Monex USA

January 12, 2026

— Despite a presidential effort to curtail AI regulations at the state level, Republican lawmakers in Wisconsin see a role for legislation to protect data privacy and improve agency operations with the technology.

Rep. Nate Gustafson, who chairs the Assembly Committee on Science, Technology, and AI, also says he believes in the technology’s potential to help address workforce concerns in Wisconsin.

“We have a massive labor gap. The workforce crisis is still in full swing, if not going to get worse,” the Omro Republican said in a recent interview. “We have a tool now at our disposal that we absolutely need to take advantage of now, rather than sitting around and waiting for individuals to fill these positions.”

But President Donald Trump’s recent executive order targeting state-level AI regulations could complicate the picture, with Dems in Wisconsin condemning the move as harmful and overly restrictive.

“It’s unfortunate that states aren’t allowed to develop solutions that best protect and balance their business interests with important concerns such as the environment and labor,” Rep. Ben DeSmidt, D-Kenosha, said in a statement on Trump’s Dec. 11 order.

Before that order was issued laying out a “national policy framework” for AI, Wisconsin had already passed AI-related legislation. Rep. Adam Neylon, R-Pewaukee, introduced a bill last session requiring disclosures of AI use in political campaign commercials, which he says was one of the first AI laws on the books in Wisconsin.

After reviewing Trump’s executive order, Neylon said the state’s existing AI laws don’t seem to be threatened by it.

“Our laws do not block or stifle innovation or the growth of AI,” he said in a statement. “Instead, they establish reasonable, targeted guardrails that allow innovation to continue while ensuring accountability and public trust.”

Looking ahead, Gustafson says one of his top priorities in the AI policy space is protecting data privacy for consumers and constituents. He raised the issue of widely used AI platforms drawing on sensitive data, adding he wants to find ways to mitigate related risk.

He’s also interested in exploring how to support the work of state agencies with AI tools, to help boost productivity without having to add more staff positions.

“That’s I think an angle that we’re going to continue to look for,” he said. “I think some other opportunities we’re going to be looking for, especially through the lens of workforce development, what are our colleges and universities doing regarding upskilling, or what are our businesses doing.”

He added establishing public-private partnerships to provide resources for such efforts would “make sure those who are still in the workforce have what they need to continue to be productive for us.”

In a separate interview, Neylon echoed Gustafson’s emphasis on protecting private data, noting health information in particular should be shielded from misuse by AI. He noted numerous private data protections are guaranteed through companies’ policies, but said no state laws currently exist to ensure that.

“We’re looking at … what are some of the best practices in the AI space, and potentially codifying it to make sure there’s like actual statute to back up those protections,” Neylon said. “So if a company changes their policies around privacy protection, that it doesn’t open up, you know, people to be more vulnerable to fraud.”

Even as he and others eye potential AI issues to address with legislation, Gustafson said he’s taking a “wait, don’t regulate” approach in the Assembly’s AI committee. He warned that overregulation of the technology could hinder future development, and cause Wisconsin and the country overall to fall behind.

See the full story.

— In the latest episode of “Talking Trade,” Monex USA Chief Economist John Min says tariffs are driving up prices on imported goods, contributing to inflation.

“If it wasn’t for tariffs, I think we may be close to 2%, which is our goal, but we’re stuck at 3%, so there’s an effect,” he said in advance of tomorrow’s MITA event.

He noted the U.S. Department of the Treasury is currently collecting $30 billion per month, adding U.S. companies are the ones footing the bill.

“Whether they’re passing on the tariffs to the consumers … about 50% of the cost is being passed on, and companies are absorbing with their margin, we just don’t know how long they could last doing that,” he said.

If that’s the case, he expects to see “the full effect” of tariffs hit prices within the next six or seven months.

“I see an almost divided economy, to a certain extent … the bigger retailers are able to absorb it better, because they have the scale, they can negotiate, they can find alternative suppliers,” he said. “It’s the smaller businesses, they’re really getting hurt because cash flow is very thin anyway.”

While he’s optimistic about future U.S. economic growth, Min raised concerns about a “disconnect” between that growth and labor market trends.

“As I describe the microeconomic conditions, I’m very concerned,” he said. “Because we are growing, but we’re not creating jobs. And in fact, I’ve never seen this type of disconnect between growth rate and the employment numbers.”

The discussion also explores potential impacts of AI on productivity and related investment trends, supply chain changes and more on the international trade landscape for 2026.

“Overall, the international trend we expect to be, I don’t want to say rosy, but still positive, still growing,” Min said.

Talking Trade is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. President and Managing Director Sandi Siegel.

Watch the full episode here.

“Talking Trade” is now available in audio form on Apple Podcasts and Google Podcasts. Subscribe and find more episodes here.

Min will be a featured speaker at the Madison International Trade Association’s event tomorrow, The Road Ahead 2026: Money & Markets. The in-person event is being held from 10:30 a.m. to 2:00 p.m. at the UW Fluno Center Skyview Room in Madison. See event details and register here.

— Rep. Shae Sortwell, R-Two Rivers, says his bill authorizing a host of incentives to develop new nuclear power plants has the blessing of Democratic Gov. Tony Evers.

“He told me point-blank when I was in the office for another bill. Put it on his desk, he’ll sign it,” Sortwell said on the latest episode of the WisPolitics “Capitol Chats” podcast.

Sortwell, whose district includes the state’s sole active nuclear power plant, says Wisconsin is primed to lead the country in new nuclear development.

He cited UW-Madison’s nuclear engineering programs, new power demand from data centers, and an emerging bipartisan consensus in the state around nuclear power.

He cited two bills signed by Evers that allocate $2 million to a site study for a nuclear fusion plant and create a state Nuclear Power Summit Board.

If Wisconsin can overcome the high entry costs of building nuclear plants, Sortwell believes the state could even transition from importing power from other states to selling it to Wisconsin’s neighbors.

“I’m not a huge fan of data centers personally, but the idea that we are powering those in Illinois and Indiana and Michigan and Minnesota, that’s a fantastic idea to me,” Sortwell said. “I’d love to build power plants here and ship that power off to Illinois and Indiana.”

Listen to the full episode here.

Top headlines from the Health Care Report…

— Mental illness among young adults in the state is on the rise, exceeding the national rate, the Wisconsin Office of Children’s Mental Health reports.

And U.S. Rep. Derrick Van Orden, R-Prairie du Chien, was one of 17 Republicans to join Democrats in voting to pass a bill to extend enhanced Affordable Care Act subsidies for three years.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

Sign up here.

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