Introduction
The issuance of Executive Order No 14179 by former President Trump marks a pivotal change in the United States’ approach to artificial intelligence (AI) regulation. This order aims to enhance American leadership in AI by reducing regulatory barriers and fostering innovation, diverging from the previous administration’s emphasis on safety and oversight.
Description
Trump’s Executive Order No 14179 [1], titled “Removing Barriers to American Leadership in Artificial Intelligence,” issued on January 23 [3], marks a significant shift in the federal government’s approach to artificial intelligence (AI) regulation [5]. This order aims to position the United States as a global leader in AI by fostering innovation and reducing regulatory barriers, moving away from the previous administration’s focus on safety, oversight [1] [3] [4], and mitigating potential biases and discrimination in AI applications [3]. It mandates federal agencies to develop action plans to eliminate regulations perceived as hindrances to progress and instructs them to review and potentially rescind conflicting policies established under the Biden administration.
A White House fact sheet underscores the importance of AI leadership [1], criticizing earlier approaches as overly restrictive and detrimental to innovation [1]. In line with this new direction, the Equal Employment Opportunity Commission (EEOC) has rescinded guidance related to AI compliance with federal employment laws, including the withdrawal of documents addressing the potential adverse impacts of AI tools under Title VII and violations of the Americans with Disabilities Act (ADA) [1]. While the Trump AI Order does not explicitly revoke existing federal [3], state [1] [3] [4], or local laws [3] [4], it signals a shift away from regulatory initiatives established under the Biden administration [3]. However, some guidance [3], such as the Department of Labor’s recommendations on AI and worker well-being [3], remains in effect [3], advocating for worker inclusion in AI processes and the establishment of governance structures [3].
Despite these changes at the federal level, anti-discrimination laws at the federal, state [1] [3] [4], and local levels remain applicable to AI use in the workplace [1]. Employers are still required to comply with laws such as Title VII [1], the Age Discrimination in Employment Act (ADEA) [1], and the ADA [1], which prohibit discriminatory practices [1]. The Fair Labor Standards Act (FLSA) and other employment laws continue to govern the use of AI for employee monitoring. Certain states and local jurisdictions have enacted laws regulating employers’ use of AI [4], requiring notice and opt-out options for employees when AI is used in employment decisions [4]. For instance [1] [2], Colorado’s SB 24-205 and Illinois’ HB 3773 [1], effective in 2026 [1], impose requirements on the use of high-risk AI systems in employment decisions [1], including conducting annual impact assessments and ensuring transparency to prevent algorithmic discrimination [1]. The California Privacy Protection Agency has also proposed regulations that extend beyond employment decisions [4], mandating compliance with notice [4], opt-out [4], and risk-assessment requirements for employers using AI for extensive profiling and training AI systems with personal data [4]. Jurisdictions like New York City are implementing laws that require bias audits and impact assessments for automated employment decision tools [3].
The recent executive orders reflect a significant policy shift from a focus on responsible AI use to a pro-innovation stance [1], creating a regulatory gap that states and local jurisdictions are beginning to address through new legislation aimed at regulating AI use in the workplace [1]. Additionally, the Trump administration has indicated intentions to utilize emergency declarations to support initiatives like Stargate, a newly announced AI infrastructure joint venture [2], further emphasizing a strategic pivot towards a regulatory approach that prioritizes innovation by allowing issues to arise before implementing regulations [2]. The administration also maintains strict export controls on AI-related technologies [5], particularly concerning semiconductor technology [5], to safeguard US competitiveness [5].
As the regulatory landscape evolves, companies must remain vigilant and develop strategies to navigate the complexities of compliance and regulatory risks in an increasingly dynamic environment [5]. Employers should monitor developments from federal agencies [4], ensure AI use aligns with existing laws [4], and consider training employees on AI literacy while conducting regular risk assessments and audits [4]. Maintaining human oversight is essential to mitigate risks and address potential issues related to employee trust and morale [1], especially as the use of AI may heighten the risk of discrimination claims due to reduced human oversight [4]. The future of AI initiatives under the Biden administration remains uncertain, with possibilities ranging from a complete reversal of existing policies to a more targeted approach addressing specific issues [2], although regulations concerning national security risks associated with AI are likely to be maintained [2].
Conclusion
The shift in AI regulatory policy under Executive Order No 14179 has significant implications for innovation and compliance. While it aims to bolster US leadership in AI, it also creates a regulatory gap that states and local jurisdictions are beginning to fill with new legislation [1]. Companies must adapt to this evolving landscape by ensuring compliance with existing laws and maintaining human oversight to mitigate risks. The future direction of AI regulation remains uncertain, with potential changes under the Biden administration that could further impact the regulatory environment.
References
[1] https://www.jdsupra.com/legalnews/federal-laws-still-apply-despite-ai-1997256/
[2] https://news.bloomberglaw.com/us-law-week/early-trump-ai-moves-come-in-a-complex-regulatory-landscape
[3] https://www.mintz.com/insights-center/viewpoints/2226/2025-02-12-artificial-intelligence-executive-order-workplace
[4] https://www.kslaw.com/news-and-insights/employers-use-of-artificial-intelligence-in-the-workplace-after-president-trumps-executive-orders
[5] https://www.kslaw.com/news-and-insights/trump-administration-early-executive-orders-signal-shift-in-ai-policy
