10:14 pm - April 27, 2025
The rollback of the order is seen by supporters as a move to invigorate investment in artificial intelligence development.
President Donald Trump has officially revoked the AI executive order implemented by former President Joe Biden, a move that many in the tech industry believe could reinvigorate investment in artificial intelligence (AI) development. This decision was announced on January 20, the first day of Trump’s second presidency.
The revoked executive order, introduced in 2023, mandated that AI developers submit comprehensive safety test results to the government to mitigate potential risks to national security, public health and the economy. Big players in the AI sector, such as OpenAI and Meta, were required to disclose the outcomes of these safety assessments.
In addition, the order directed the establishment of safety standards for AI tools — a task assigned to the National Institute of Standards and Technology. The Department of Energy was also charged with creating evaluation tools for AI technologies that could pose threats in critical areas such as nuclear security and environmental safety.
Critics from within the AI industry have long denounced the Biden administration’s regulations as overly stringent, arguing that requirements to report safety tests risk disclosing sensitive trade information. Trump, who campaigned on a pro-technology platform, had previously articulated that such regulatory measures were detrimental to innovation. He said that “the Republican Party supports AI development rooted in freedom of the press and human prosperity,” signalling his intent to dismantle restrictive policies.
Publishers will, however, be wary about what this change in direction means for the treatment of their content by AI companies. The New York Times and others are suing OpenAI for copyright infringement over allegations that the company used their material to train AI models without permission.
Upon taking office, Trump appointed David Sacks, former Chief Operating Officer of PayPal and a noted critic of technology regulation, as his AI and Cryptocurrency Czar. This appointment is viewed as indicative of a forthcoming relaxation in the governance of AI technologies. Analysts anticipate that this regulatory shift could lead to increased investments in AI stocks, as market sentiment turns more positive in response to the anticipated easing of restrictions.
Bloomberg reported that while President Trump has not outlined specifics regarding a potential replacement for the repealed order, he is likely to favour a less intrusive regulatory model moving forward. The implications of this decision continue to unfold as the industry reacts and positions itself in response to the changing legal landscape. The focus is now on how this regulatory void will be filled and what frameworks may take precedence in safeguarding the interests of both the public and AI developers in an increasingly complex digital age.
Source: Noah Wire Services
- https://fedscoop.com/trump-rescinds-biden-ai-order-creates-doge-orders-in-person-work/ – Corroborates the revocation of Biden’s AI executive order by Trump and the establishment of new policies, including the return to in-person work and the creation of the Department of Government Efficiency (DOGE).
- https://www.bloomberg.com/news/articles/2025-01-21/trump-scraps-biden-s-sweeping-ai-order-in-regulatory-reset – Supports the details of Biden’s AI order, its revocation by Trump, and the impact on AI regulation and safety standards.
- https://www.bloomberg.com/news/articles/2025-01-21/trump-scraps-biden-s-sweeping-ai-order-in-regulatory-reset – Confirms the halt in implementation of key safety and transparency requirements for AI developers and the creation of the US AI Safety Institute under the Commerce Department.
- https://fedscoop.com/trump-rescinds-biden-ai-order-creates-doge-orders-in-person-work/ – Provides context on the criticism of Biden’s AI order by Republicans and the industry, and Trump’s stance on technology regulation.
- https://www.bloomberg.com/news/articles/2025-01-21/trump-scraps-biden-s-sweeping-ai-order-in-regulatory-reset – Highlights the concern over the gap in federal oversight of AI regulation following the rescission of the executive order.
- https://fedscoop.com/trump-rescinds-biden-ai-order-creates-doge-orders-in-person-work/ – Details Trump’s appointment of David Sacks and its implications for AI and cryptocurrency regulation.
- https://www.bloomberg.com/news/articles/2025-01-21/trump-scraps-biden-s-sweeping-ai-order-in-regulatory-reset – Mentions that Trump is likely to favor a less intrusive regulatory model for AI moving forward.
- https://fedscoop.com/trump-rescinds-biden-ai-order-creates-doge-orders-in-person-work/ – Explains the establishment of the National AI Research Resource and its bipartisan support, which was part of Biden’s AI order.
- https://www.bloomberg.com/news/articles/2025-01-21/trump-scraps-biden-s-sweeping-ai-order-in-regulatory-reset – Discusses the potential impact on AI stocks and market sentiment due to the easing of regulations.
- https://fedscoop.com/trump-rescinds-biden-ai-order-creates-doge-orders-in-person-work/ – Outlines the role of the Department of Energy in evaluating AI technologies for threats in critical areas like nuclear security and environmental safety.
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