On January 23, 2025, President Donald Trump signed an Executive Order (EO) aimed at reinforcing the United States' leadership in the field of artificial intelligence (AI). Titled "Removing Barriers to American Leadership in Artificial Intelligence," the EO is part of a broader strategy from the White House to enhance the country’s competitive edge in AI technology while striving to develop systems that are free from “ideological bias or engineered social agendas.”
The EO mandates the creation of an “AI Action Plan” within six months, designed to fulfil the administration's objective of maintaining US dominance in AI technology. This directive is cast against the backdrop of Trump's earlier actions, which included the repeal of an EO under President Biden focused on the "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence." That previous initiative aimed to regulate AI development based on principles of privacy, civil rights, and innovation. The repeal occurred on the first day of the Trump administration under a broad order dubbed the "Initial Rescissions of Harmful Executive Orders and Action."
As the specifics of the new national policy direction come to light, potential implications include a fragmented patchwork of state laws and regulations, possibly leading to increased litigation regarding AI adoption. In anticipation of the Trump administration's deregulatory stance, California's Attorney General, Rob Bonta, issued two legal advisories on AI, asserting that the state is committed to both technological advancement and economic justice. Meanwhile, New York Governor Kathy Hochul has mandated that employers disclose the use of AI in layoffs, thereby contributing to a growing framework of restrictions on AI usage at both municipal and state levels. Additionally, the Texas legislature is reviewing the Texas Responsible AI Governance Act (TRAIGA), which has gained attention for its rigorous regulatory measures on AI.
The newly signed EO aims to foster innovation through a robust framework that embraces free-market principles, world-class research, and the entrepreneurial spirit of the United States. However, it does not specifically enumerate which policies are deemed obstacles to innovation, leaving the determination to the incoming administration's comprehensive policy review.
A fact sheet released alongside the signing critiques the methodologies imposed by the Biden administration, characterising them as “dangerous” and "onerous." It argues that these policies create burdensome requirements that impede private sector innovation and threaten American leadership in technology.
Central to Trump's new approach is the development of an AI Action Plan, to be spearheaded by top White House officials and agency heads. This initiative builds on actions taken during Trump’s first term, including increased investments in AI research and the establishment of national AI research institutes. The administration also aims to collaborate with international allies to set AI technical standards as part of a strategy to achieve "global AI dominance."
In the wake of the revocation of Biden-era policies, the EO mandates a rapid review of previously established regulations surrounding AI. Key figures such as Michael Kratsios, Assistant to the President for Science and Technology, and David Sacks, Special Advisor for AI and Crypto, have been tasked with assessing existing policies for inconsistencies with the new approach. The review process includes identifying barriers to the newfound policy direction and enables potential revisions or rescissions of existing actions that may not align with the administration's goals.
The dissolved federal framework raises questions about the potential for states to step in and regulate AI, marking a shift towards local governance in the absence of comprehensive federal legislation. This might lead to greater regulatory variability across states, particularly in states like Colorado, which has already enacted the Consumer Protections for Artificial Intelligence Act, and Texas, where proposed legislation seeks to impose stricter regulations on high-risk AI systems used by employers.
As companies navigate this evolving landscape, the prospect of increased state-level activity in AI regulation appears likely, driven by the need for clarity amidst the absence of uniform federal standards.
Source: Noah Wire Services