The state of the artificial intelligence (AI) market in the United States may change when incoming President Donald Trump resumes office. The new administration seems to have a different approach to regulating AI and could undo some of the moves made by outgoing President Joe Biden.
Since OpenAI launched ChatGPT in November 2022, the world has become more aware of and interested in artificial intelligence technology, primarily through the widespread adoption of chatbots. Artificial intelligence has also impacted the crypto sector as there are AI-focused digital assets bringing impressive returns to investors. These assets have helped diversify investor portfolios as traders search for the next cryptocurrency to explode. The attraction to some of these new assets includes laudable features like high-yield staking, compatibility with major L1 blockchains like Ethereum, as well as active communities that have helped raise considerable inflows during presale phases.
In October 2023, the Biden Administration signed an Executive Order that set privacy and safety standards for the use of AI. The order aimed to promote ethical use of the technology and also warned that misuse can worsen disinformation, fraud, bias, and discrimination. In addition, Biden noted the potential dangers of AI, including the displacement of workers and risks to national security.
Interestingly, Trump already has other plans. While there are no extensive details, Trump’s manifesto promises to undo Biden’s efforts. A manifesto reads:
“We will repeal Joe Biden’s dangerous Executive Order that hinders AI innovation, and imposes radical leftwing ideas on the development of this technology. In its place, Republicans support AI development rooted in free speech and human flourishing.”
Trump seems to be promising a significant change in the direction of free speech. This suggests that the application of AI technology would be supported, encouraging the free evolution of the technology. Unfortunately, some worry that the plan will allow too much AI freedom.
A senior policy counsel at the ACLU’s National Political Advocacy Department, Cody Venzke, believes that Trump will really repeal Biden’s order. Venzke added that this could lead to a “free-for-all” in the AI industry, allowing for “growth without significant guardrails.” Notably, Venzke admits that AI regulation is on the Trump administration’s radar, although it might not be the new government’s top priority.
Via Truth Social, a social media platform founded by Trump, the incoming president announced that David O. Sacks will be the “White House AI & Crypto Czar.” According to Trump’s post, Sacks will ensure that the US will become a leader in both industries. Trump also added that Sacks will promote free speech online and reduce Big Tech bias and censorship.
A former White House official present in Trump’s first administration confirmed that the government will scrutinize the order to decide what to adopt or suspend. Interestingly, this move will reportedly affect all executive orders signed by Biden.
The director of the Center for Technological Responsibility, Reimagination and Redesign at Brown University, Suresh Venkatasubramanian, has said that there are AI-related executive orders signed during Trump’s first administration that could still be reused. Venkatasubramanian, who co-authored a White House AI Bill of Rights, however, believes that the possible danger would be a complete suspension of guidance for agencies. The director says the absence of guardrails would mean that the US will no longer be strong enough to create the standard for AI governance.
Other stakeholders have voiced similar concerns, echoing Venzke’s thoughts on the incoming administration’s plan for AI. For instance, Nik Marda, a former Office of Science and Technology Policy staff, highlighted that Trump’s policies could involve a large amount of data collected and analyzed by government bodies. Marda warned that moving forward with AI usage without guardrails is bad, and would lead to intentional misuse of the technology.
Another potential hurdle for the Trump administration is Big Tech. Reports suggest that tech industry associations support Biden’s AI approach. Groups backed by tech giants like Meta, Amazon, Microsoft, and Google, would want to maintain Biden’s safety standards and also have some policies enacted as law. Until after Trump’s inauguration in January, it would be difficult or entirely impossible to properly predict Trump’s plans for AI and whether or not the new administration is concerned about useful guardrails to avoid the dangers of artificial intelligence.
