"We want to have one central source of approval," Trump told reporters, flanked by top advisers, including Treasury Secretary Scott Bessent.
Trump said companies should not have to abide by laws that differ by state.
"You still won't get it approved, if you have to go to 50 states," he said.
The order will give the Trump administration tools to push back on the most "onerous" state regulations, said White House AI adviser David Sacks.
The administration will not oppose rules governing AI and kids safety, he added.
Major AI players including ChatGPT maker OpenAI, Alphabet's Google, Meta Platforms, and venture capital firm Andreessen Horowitz have said the federal government, not states, should regulate the industry.
Yet state leaders from both major political parties have said they need the power to put guardrails around AI, particularly as Congress has consistently failed to pass laws governing the tech industry.
Florida Governor Ron DeSantis, a Republican, has proposed an AI bill of rights that includes data privacy, parental controls and consumer protections.
California Governor Gavin Newsom, whose state is home to several major AI companies, signed off on a bill this year requiring major AI developers to explain plans to mitigate potential catastrophic risks.
Other states have passed laws banning AI-generated non-consensual sexual imagery and unauthorised political deepfakes.
