Dive Brief:
President Donald Trump has stayed true to his campaign promise by repealing former President Joe Biden’s executive order focused on artificial intelligence (AI). Issued in October 2023, Biden’s directive mandated that developers of advanced AI would need to submit safety results to the federal government. While it aimed at establishing procurement process changes and the creation of the U.S. AI Safety Institute, it did not enforce specific penalties for non-compliance.
The industry is now anticipating that President Trump will maintain a light regulatory approach towards AI. Prominent tech leaders, including Meta’s Mark Zuckerberg and Google’s Sundar Pichai, were present at Trump’s inauguration, signifying strong ties between the new administration and Silicon Valley.
Dive Insight:
On his first day in office, Trump initiated sweeping regulatory changes, which included the rescission of over 70 directives from the Biden administration, with the October 2023 executive order being a key part of this overhaul. Additionally, Trump appointed Silicon Valley investor David Sacks as the White House AI and Crypto Czar, whose main role is to develop policies that could potentially ease restrictions on AI innovation.
This softer federal oversight may lead to an uptick in state-level regulations, as noted by Jennifer Everett, a partner at Alston & Bird’s technology and privacy group. “Companies involved in AI development should be aware that while the federal government’s regulations may be less stringent, states could step in to fill the gap,” she explained.
As business leaders watch the developments closely, they are particularly mindful of potential regulations from states like California, Colorado, Oregon, Montana, and Tennessee. The resulting patchwork of state laws could complicate compliance efforts for many enterprises.
Moreover, U.S. companies are also bracing for the enforcement timeline concerning the European Union’s AI Act, which adds another layer of complexity.
The landscape of AI oversight is evolving further with the leadership of Andrew Ferguson at the Federal Trade Commission (FTC). Appointed by Trump, Ferguson, a former agency commissioner, approaches AI regulation cautiously. “We must avoid over-regulating AI in a way that could stifle this emerging technology,” he cautioned. “Yet, we must also ensure that major tech firms don’t dominate and stifle innovation.”
The rollback of the Biden-era executive order signifies a shift towards a more innovation-friendly environment. Still, this doesn’t indicate a complete retreat from the federal government’s focus on AI. Analyst Lydia Clougherty Jones from Gartner emphasizes the need for ongoing public and private partnerships to develop robust AI infrastructure and maintain the U.S.’s competitive edge in technology.
As we stand on the brink of this new era in AI policy, it’s crucial for individuals, businesses, and tech enthusiasts alike to remain informed and engaged. The changes ahead promise to reshape the AI landscape significantly, providing both challenges and opportunities for innovation.
The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.
