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Jan. 21, 2025, 5:38 a.m.
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Trump to Relax Biden's AI Regulations: What to Expect

Brief news summary

Following his inauguration on January 20, President Donald Trump is anticipated to revise or repeal AI regulations put in place by President Joe Biden, who was criticized by Republicans for hindering innovation. Expert Duane Pozza notes that Trump’s approach may be multifaceted due to the regulations originating from various federal agencies. The Trump administration aims to reduce regulatory hurdles for AI to stimulate innovation, reminiscent of previous policies. During Biden's presidency, the Federal Trade Commission (FTC) prioritized addressing misleading AI claims, a focus that is likely to persist under Trump. Biden also enacted executive orders for stronger AI oversight and implemented export restrictions on advanced AI chips to address national security concerns. Pozza expects that states will play a larger role in AI regulation, as many are already developing their own rules. Trump's prospective cabinet selections, including venture capitalist David Sacks for AI and cryptocurrency oversight, indicate a strong inclination towards fostering innovation. However, the administration may also heed warnings about AI risks voiced by Elon Musk through his project, xAI.

President Donald Trump is anticipated to relax or eliminate President Joe Biden's regulations on artificial intelligence (AI) once taking office on January 20. The Republican National Committee's 2024 platform criticizes Biden's AI policy, claiming it stifles innovation. However, analysts, like Duane Pozza, a former Federal Trade Commission assistant director, expect that Trump's changes may be more nuanced than his rhetoric suggests, particularly since many of Biden's policies have already been implemented and could be challenging to reverse. Pozza noted that Trump's administration is likely to impose fewer regulations, drawing on the 2020 executive order from Trump’s first term, which promoted AI to benefit Americans. Nevertheless, he indicated that some Biden-era enforcement against deceptive practices in AI is likely to continue under the Federal Trade Commission (FTC). Biden's October 2023 executive order placed scrutiny on foundation models, requiring pre-deployment government inspections and safety testing.

Additionally, Biden issued two executive orders in January aimed at AI data center development on federal lands and expanding chip export controls for national security. As Trump is expected to ease regulations on AI, Pozza believes states will begin to increase their regulatory efforts, with 2024 seeing numerous proposed AI-related bills across at least 45 states. Currently, Colorado has implemented comprehensive AI regulations, while other states are focused on specific harmful uses like deepfakes. Trump’s stance on Biden's chip export controls remains uncertain due to national security considerations and competition with China. His appointment of David Sacks, a venture capitalist, to manage AI and cryptocurrency suggests a push for a pro-innovation regulatory environment. However, the influence of Elon Musk, who has raised concerns about the dangers of unchecked AI, may complicate the administration's stance, especially given his founding of a for-profit AI company, xAI, which lacks safeguards against misinformation. Overall, while Trump is set to promote a less regulated environment for AI, the evolving landscape, including state actions and Musk's involvement, will play significant roles in shaping future policies.


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