President Trump’s inauguration on January 20, 2025 has already resulted in significant changes to federal artificial intelligence (AI) policy, marking a departure from the regulatory framework established during the Biden administration. This change is expected to reshape how companies approach AI development, deployment, governance, and compliance in the United States.
Historical background and initial actions
The first Trump administration (2017-2021) maintained U.S. leadership in AI through executive actions, including the 2019 Executive Order (EO) on Maintaining U.S. Leadership in Artificial Intelligence and the establishment of the National Artificial Intelligence Initiative Office. I prioritized doing so. This approach emphasized America’s technological superiority, especially when it came to global competition.
Meanwhile, the Biden administration’s approach to AI development emphasized “responsible deployment,” or enabling AI to advance and deploy while maintaining strategic control over frontier capabilities.
In a swift and significant move, President Trump rescinded President Biden’s October 2023 Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence on his first day in office. This measure represents a clear shift in direction (or at least a move away from government mandates and towards market-driven safeguards) towards prioritizing innovation and private sector growth and development over regulatory oversight and AI safety. It shows.
New policy priorities
Several key priorities have emerged that are likely to shape AI development under the second Trump administration.
Focus on national security: The Trump administration’s EO positioned AI development as a national security issue, especially with regard to competition with China. The administration is likely to have bipartisan support in this area. Energy Infrastructure: The Trump administration’s declaration of a national energy emergency on its first day in office highlights the administration’s recognition of the significant computational complexity and energy demands of AI. And on his second day in office, President Trump followed up this declaration by announcing a $500 billion private sector investment in AI infrastructure assets, codenamed “Project Stargate,” with the project’s first data center already located in Texas. It is under construction in the state. Defense Integration: Increased military spending on AI capabilities and the administration’s military focus may lead to a focus on accelerating the development of defense-related AI applications.
Regulatory changes and business impact
The new administration’s approach signals some potential changes to the AI regulatory landscape.
Restructuring of federal agencies: Key agencies such as the Federal Trade Commission may reduce their focus on consumer protection to allow for freer market competition and innovation. Preemption considerations: The administration may pursue federal legislation that creates uniform standards that preempt the current patchwork of state and local AI laws and regulations. International engagement: International AI cooperation and technology sharing, particularly restrictions on exports of semiconductors used in AI (already tightened under the Biden administration), are likely to increase.
Strategic planning considerations
The AI policy shift creates new obligations for business leaders, including:
Compliance across multiple jurisdictions: Despite the potential for reduced federal oversight, companies must comply with applicable federal, state, and local regulations, including EU AI laws for organizations operating in EU member states. must maintain compliance with international requirements. Investment Strategy: Changes in federal policy and potential international trade restrictions may change AI development costs, investment patterns, and technology budgets. Risk management: Regardless of regulatory requirements, companies must maintain a robust internal governance framework, particularly considering ongoing operational and reputational risks.
For the future
Although specific policy developments remain in flux, the Trump administration’s emphasis on technological leadership and reduced regulatory oversight signals a significant departure from previous approaches. However, the continued integration of AI into critical business functions requires continued attention to responsible development and deployment practices, even as the regulatory environment evolves.
Companies can stay up-to-date on policy developments while maintaining a robust AI governance and compliance framework that can adapt to changing federal priorities while ensuring compliance with applicable legal and regulatory obligations and standards. information must be obtained.
