As the United States prepares for a new presidential administration under Donald Trump, the regulatory landscape concerning artificial intelligence (AI) and technology is poised for significant transformation. With an approach that prioritises innovation and economic competitiveness, the incoming administration is expected to diverge sharply from the previous, more stringent policies of the Biden administration. This anticipated shift has created a framework for discussion about key technology law issues that will influence the country's direction in AI regulation, data privacy, cybersecurity, and social media governance.
Under the Biden administration, the implementation of the AI Bill of Rights and order on AI put focus on protecting privacy, civil rights, and safety in the rapidly evolving AI landscape. Regulations mandated developers of AI systems to disclose safety test results and required rigorous safety standards from the National Institute of Standards and Technology, attempting to establish responsible governmental use of AI. However, President-elect Trump has signalled intentions to repeal these regulations, striving instead for a less restrictive environment conducive to free speech. The nomination of Andrew Ferguson to lead the Federal Trade Commission indicates a further move away from stringent AI regulations typically aimed at safeguarding consumer rights.
With limited prospects for cohesive federal legislation under Trump, states may increasingly take the reins, crafting their own laws to address emerging AI-related concerns. In 2024, approximately 45 states introduced bills related to AI, such as Colorado’s recently passed comprehensive algorithmic discrimination legislation. As 2025 approaches, state lawmakers may adopt broad regulations similar to Colorado’s or concentrate on specific areas, including automated decision-making, facial recognition, and AI applications.
Data privacy remains a focal point as well, with the upcoming legislative landscape still uncertain. The proposed American Privacy Rights Act, introduced in 2024, aims to establish a federal privacy framework that would preempt state laws while allowing individuals the right to sue over violations. If passed, this legislation would attempt to standardise compliance amidst a patchwork of state regulations, many of which vary considerably in scope and implementation. The ongoing focus includes sensitive data definitions, youth privacy measures, and addressing compliance burdens on smaller businesses.
As states assert their role in privacy regulation, significant efforts are underway to bolster cybersecurity standards. Approximately 30 states now mandate businesses to uphold certain cybersecurity protocols, while additional measures have emerged to safeguard health data beyond the restrictions of the Health Insurance Portability and Accountability Act. This aspect of regulation underscores heightened awareness among state governments as they navigate issues surrounding data security in the absence of cohesive federal action.
Online platform regulation remains equally contentious, straddling party lines as debates about Section 230 continue. This legislation currently provides protections for online platforms against liability for user-generated content; however, both the Biden and Trump administrations have aimed to reform it. Trump has previously criticised Section 230 for allegedly permitting censorship, while the Biden administration sought to enforce stricter accountability for tech companies regarding objectionable content. As 2025 unfolds, further discussions will likely emerge regarding the balance between protecting free speech and ensuring accountability for online platforms.
In summary, the impending regulatory transition under the Trump administration signifies a pivot toward a deregulatory approach across various technology sectors, particularly in AI and data privacy. As states lead the charge in crafting legislative measures, the balance of power between federal, state, and judicial branches will shape the future of technological regulation in the United States through 2025 and beyond.
Source: Noah Wire Services