Introduction
The Trump administration has initiated a significant shift in its approach to artificial intelligence (AI) regulation, focusing on deregulation and innovation to bolster national competitiveness and economic strength. This new direction involves repealing previous regulatory frameworks and emphasizing minimal regulatory barriers, raising concerns about potential impacts on safety, bias [4] [6] [7], and civil rights [4] [6] [7].
Description
The Trump administration is implementing a significant shift in its approach to artificial intelligence (AI) regulation, prioritizing deregulation and innovation to maintain national competitiveness and economic strength. One of the first actions taken was the repeal of the previous administration’s Executive Order on Safe [2], Secure [2], and Trustworthy Development and Use of AI [2], which mandated advanced AI developers to report safety test results to the government [6]. This repeal is viewed as a move that could hinder innovation while reducing government oversight [6], as the previous order aimed to mitigate risks to national security, public health [6], and civil rights [4] [6] [7]. Along with this repeal, a review of a National Security Memo related to AI has been initiated [2].
An executive order titled “Removing Barriers to American Leadership in Artificial Intelligence,” signed on January 23, 2025 [4] [7], revokes the previous framework that included mandatory assessments for high-risk AI models and enhanced cybersecurity protocols [4]. This new directive emphasizes minimal regulatory barriers, framing AI development as essential for the United States’ global technological dominance, while raising concerns about potential increases in bias [7], misinformation [2] [7], and civil rights violations [4] [6] [7]. The administration has appointed a tech investor as the White House AI & Crypto Czar to lead the development of an AI action plan free from ideological bias, with a comprehensive action plan expected within 180 days [7]. The administration is also expected to provide several opportunities for public input as it drafts this plan and implements the new directives [3].
Agency heads are directed to review and potentially suspend or revise actions taken under the previous administration that are inconsistent with the new policy objectives [5]. This includes revising specific Office of Management and Budget memoranda that govern the responsible use of AI systems [7]. While the Trump administration aims to deregulate AI [5], several states [5], including California [5], Colorado [1] [4] [5], and Illinois, are considering their own regulations to address the regulatory gap left by the federal shift [5]. The previous administration had sought to implement safeguards regarding AI’s impact on labor markets and employment decisions [5], but the current executive order does not prioritize civil rights protections, drawing criticism from experts concerned about the implications of reduced oversight on AI governance [7].
The new order reflects a departure from the previous administration’s focus on equity and civil rights, as it does not address discrimination and bias in AI applications [4]. This shift raises questions about the maintenance of responsible AI principles and the potential for increased discrimination [7], misinformation [2] [7], and hate speech [7]. Furthermore, the approach to global AI leadership diverges significantly [4], with the previous order promoting international cooperation to establish common safety standards [4], while the new order adopts a more unilateral stance without specific commitments to collaboration [4]. This deregulatory approach contrasts sharply with the European Union’s comprehensive AI regulations [4], which emphasize safety [4], transparency [1] [2] [4], and accountability [4]. The lack of explicit ethical safeguards in the Trump administration’s policy could hinder US companies’ competitiveness in European markets [1], where compliance with the EU AI Act is essential for market access [1].
The implications of this deregulation could extend beyond the United States [7], influencing AI policy and practices in other countries [7]. The decision to rescind previous executive orders and adopt a “clean slate” policy may complicate the establishment of global AI governance standards [1]. While the EU and other international bodies work towards aligning principles such as transparency and safety [1], the US’s focus on deregulation could diminish its influence in shaping these norms [1]. This approach may also foster a perception that the US prioritizes short-term innovation over long-term ethical considerations [1], potentially alienating international allies [1].
Additionally, the executive order may exacerbate the divide between federal and state AI regulations [1], as it signals a federal shift towards reduced regulatory constraints [1]. States like Colorado [1] [4], California [1] [4] [5], and Texas have already implemented their own AI laws [1], leading to a fragmented regulatory landscape [1]. The absence of clear federal guidelines could complicate compliance for businesses operating across multiple jurisdictions [1]. If Congress enacts an AI law favoring innovation over risk mitigation [1], stricter state regulations may face challenges from federal preemption [1], necessitating close monitoring of both federal and state developments in the evolving AI regulatory environment [1].
Overall, this new policy framework is expected to provide greater flexibility for AI companies [7], allowing them to innovate with fewer regulatory constraints [7]. However, the long-term consequences for responsible AI governance and the rule of law remain uncertain [7], as the administration’s approach signals a move towards a nationalistic strategy in advanced technology development. Concerns have also emerged regarding privacy, particularly related to the United States Department of Government Efficiency’s access to sensitive federal data and its potential use of AI in analyzing this information [2], raising further questions about the implications for decision-making processes involving unvetted technology [2].
Conclusion
The Trump administration’s shift towards deregulation in AI policy aims to enhance innovation and maintain global competitiveness. However, this approach raises significant concerns about the potential erosion of safety, ethical standards [1] [4], and civil rights protections [7]. The divergence from international regulatory trends, particularly those of the European Union, may impact the United States’ influence in global AI governance and create challenges for businesses navigating a fragmented regulatory landscape. The long-term implications of this policy shift remain uncertain, necessitating careful monitoring of its effects on both domestic and international fronts.
References
[1] https://www.lexology.com/library/detail.aspx?g=afa18beb-aa0d-4dd0-aab1-1c860283fdbf
[2] https://www.aclu.org/news/privacy-technology/trumps-efforts-to-dismantle-ai-protections-explained
[3] https://news.bloomberglaw.com/us-law-week/under-trump-ai-development-is-set-as-a-top-national-imperative
[4] https://natlawreview.com/article/key-insights-president-trumps-new-ai-executive-order-and-policy-regulatory
[5] https://www.jdsupra.com/legalnews/trump-administration-unveils-new-ai-7173459/
[6] https://rollcall.com/2025/02/07/trump-reboots-ai-policy/
[7] https://www.internationalaffairs.org.au/australianoutlook/ai-under-donald-trump-what-the-new-executive-order-tells-us-about-americas-policy-approach/
