In a dramatic policy shift, US President Donald Trump has repealed a 2023 executive order requiring AI companies to report safety data to federal authorities. This decision, announced on his first full day in office, marks a significant change in the US government’s approach to regulating artificial intelligence.
The Revoked Executive Order
The now-rescinded directive, signed by former President Joe Biden, was the most comprehensive AI regulation in US history. It mandated developers of high-risk AI technologies—those affecting national security, public health, and economic stability—to submit safety testing data to federal agencies before deployment.
Implemented under the Defense Production Act, the order required federal agencies to establish safety standards addressing cybersecurity, chemical, biological, radiological, and nuclear threats. However, Trump’s executive order, titled “Initial Rescissions of Harmful Executive Orders and Actions,” effectively nullifies these safeguards.
This repeal aligns with the 2024 Republican Party platform, which argued that stringent regulations stifled innovation in AI development.
Implications for AI Regulation
The immediate cessation of these requirements raises questions about the future role of the US AI Safety Institute, a Commerce Department entity created to establish voluntary standards for AI deployment.
The policy change comes as the global AI race intensifies. Nations like China and members of the EU are advancing their regulatory frameworks, highlighting contrasting approaches to managing AI’s transformative impact.
Global Context and Regulatory Divergence
The US’s deregulation starkly contrasts with the EU’s stringent AI Act, implemented in 2024. The EU law prohibits certain AI uses, such as facial recognition in public spaces, and imposes strict controls on high-risk AI applications in sectors like healthcare and law enforcement.
While the federal rollback weakens oversight, state-level AI laws remain active. States like California, Colorado, and Illinois have enacted measures addressing AI transparency, algorithmic fairness, and deepfake usage.
Industry Reactions and Concerns
The technology industry has reacted with mixed sentiments. While some welcome the deregulation as a boost for innovation, others express concerns over the risks of unregulated AI development.
Ned Finkle, Nvidia’s Vice President of Government Affairs, criticized recent regulatory moves in a blog post, emphasizing the importance of global AI adoption for economic growth. However, Nvidia has also voiced concerns about export restrictions on AI chips, describing them as counterproductive to innovation.
What Lies Ahead?
President Trump’s approach to AI policy leans toward minimal federal intervention, though his long-term plans remain unclear. Notably, he has appointed venture capitalist David Sacks, an outspoken critic of tech regulation, to lead cryptocurrency and AI policy efforts.
As AI continues to evolve, the balance between fostering innovation and ensuring safety will remain a critical challenge for policymakers worldwide.
