During the campaign trail, Trump promised to dismantle Biden’s AI Executive Order from October 2023 once he takes office – which could leave the industry in further uncertainty in the face of this rapidly evolving technology.
Biden’s executive order sought to ensure AI models are developed responsibly, tasking the National Institute of Standards and Technology (NIST) with creating safety standards to identify and address risks.
However, some Republican leaders argue these measures stifle innovation. Representative Nancy Mace has cautioned that stringent requirements might slow AI advancements like ChatGPT, while Senator Ted Cruz labeled NIST’s standards as politically-motivated “woke” regulations. The fate of AISI and Biden’s AI initiatives, despite bipartisan support, is likely uncertain under Trump’s administration.
Trump’s plans extend beyond deregulation. His proposed tariffs—10% on all imports and 60% on Chinese products—could disrupt the AI industry’s supply chain, particularly for GPUs that power intensive AI training processes.
With such tariffs in place, costs for critical AI hardware would soar, potentially curbing the pace of development. Additionally, Trump has signaled a more restrictive approach to H-1B visas, potentially limiting talent recruitment for tech companies, and his focus on oil and gas could impact the energy-dependent AI sector.
Beyond federal policy, states may step in to fill any regulatory gaps. This year, Tennessee passed protections against AI voice cloning, Colorado created a tiered AI oversight system, and California enacted laws on AI transparency and deepfake protections. If Trump repeals Biden’s order, these state-level regulations could become key in guiding AI’s safe development.
Meanwhile, Elon Musk, a major Trump campaign supporter, could play a significant role in shaping the next administration’s approach to AI. Musk’s own AI company, xAI, stands alongside his other ventures, from Tesla to SpaceX, which could benefit from a looser regulatory framework. Musk’s influence, combined with Trump’s deregulatory approach, suggests a shift in AI policy that may prioritize corporate freedom over consumer protection.
During his campaign, Trump called for AI that promotes “free speech and human flourishing,” though specific policies remain sparse. Allies at the America First Policy Institute have hinted at new initiatives focused on “Manhattan Projects” to develop military AI applications, underscoring a nationalistic AI agenda.
While Trump’s previous administration laid initial groundwork with pro-AI executive orders, the rapid evolution of the industry since then may require different approaches to guide AI’s future.
