What happened?

On January 20, 2025, President Trump rescinded the Biden administration’s sweeping executive order on artificial intelligence (AI), known as the “AI Executive Order.” This development immediately terminates the implementation of some requirements for AI developers.

Overview:

President Trump’s new executive order aims to reduce restrictions and promote government and tech industry collaboration. This shift is intended to accelerate AI development and investment in the United States.

• The rescission of Biden’s AI Executive Order marks a significant shift in U.S. AI policy, prioritizing economic growth and national competitiveness over regulatory oversight.

• This change is expected to accelerate AI development and investment, while state-level regulations will become increasingly important for AI governance.

• Some of Biden’s AI moves are still in place, such as the AI Safety Institute, which is focused on national security. However, the requirement for tech companies to share details of their most powerful AI models with the government is no longer in effect.

• Stargate Initiative: Trump announced a historic AI infrastructure investment led by high-tech private sector companies. The initiative, called Stargate, will:
  • Begin with a $100 billion investment to reach $500 billion over four years.
  • Focus on AI data centers and computing power, starting in Texas and expanding nationwide.
  • Create over 100,000 jobs in AI-related industries.

Additional Details

• Biden’s AI Executive Order: Focused on establishing guardrails for developing and deploying AI technologies, it required tech companies to share details of their most powerful AI models with the government before public release. It also included various federal regulatory principles and priorities regarding AI, directing several federal agencies to promulgate technical standards and guidelines.

• Trump’s New AI Policy: Replaces AI oversight with a focus on economic growth and national competitiveness. The new policy revokes Executive Order 14110, Biden’s comprehensive AI policy to ensure safe and ethical AI deployment. Key changes include:
  • AI companies are no longer required to report safety testing results for large-scale AI models.
  • The role of the U.S. AI Safety Institute is uncertain, and its regulatory function may be minimized.
  • Federal AI guidance issued under Biden, including the AI Fact Sheet for Employers, is now in limbo.
  • National security and economic competition take center stage, with a focus on competing with China.

• State-Level Regulation: With federal oversight scaled back, state laws will play a larger role in AI governance. Employers may need state-specific compliance strategies rather than relying on federal guidance. An AI governance program is essential for all employers.

Source References

• EO 14148: Initial Rescissions Of Harmful Executive Orders And Actions
• Federal Register: EO 14148
• DOL Issues Bulletin Reminding Employers that Labor Laws Apply to AI (VensureHR)

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