The 2024 U.S. election results have set the stage for significant changes in AI legislation and regulation. With the transition from the Biden Administration to the second Trump Administration, and a GOP-controlled Congress, the landscape of AI policy is poised for a transformation. A central theme of the Trump Administration’s approach to AI policy will be the prioritization of AI innovation and competitiveness. This push for technological advancement is expected to foster significant investments in AI-related projects and initiatives, emphasizing research and development (R&D), national security applications, and strengthening U.S. private sector leadership in AI.
Federal AI Policy Under the Second Trump Administration
The Trump Administration is set to overhaul federal AI policies to enhance innovation and competitiveness. Emphasizing research and development (R&D), the administration aims to drive investments and focus on national security applications. This shift seeks to cement U.S. leadership in AI technologies, making the private sector a key player in the AI landscape. Revoking President Biden’s October 2023 Executive Order on AI safety, security, and trustworthiness will be a critical move. Such actions will halt ongoing rulemakings, including dual-use foundation model reporting and red-team testing requirements, marking a significant change in regulatory strategy.
The administration’s approach to AI regulation will likely feature a lighter touch, minimizing regulatory actions that might hinder AI growth and innovation. The re-nomination of Russell Vought as OMB Director aligns with this deregulatory agenda. Policies aimed at reducing burdens will be crucial in creating a conducive environment for AI developments. Preserving some bipartisan-supported initiatives, such as the National AI Research Resource (NAIRR) pilot and the U.S. AI Safety Institute, exemplifies a balanced approach. These initiatives will continue to focus on AI innovation, defense, and workforce talent, possibly under new executive orders or mechanisms similar to those implemented during the previous Trump Administration.
The intention to maintain a lighter regulatory framework aims to spur private-sector efforts and enable rapid advancements in AI technologies. By fostering a robust environment for innovation and development, the Trump Administration envisions an AI landscape where the private sector leads, supported by strategic government actions. This framework is expected to accelerate U.S. competitiveness in critical AI applications and ensure that national security remains a top priority. The interplay between deregulation and sustained useful initiatives reflects a nuanced approach to AI policy tailored to address the evolving technological landscape.
Industry-Friendly Policies and Leadership Changes
The Trump Administration’s industry-friendly stance is underscored by key appointments, crafting an environment favorable for private-sector innovation. Nominating venture capitalist David Sacks as AI & Crypto Czar highlights a push towards leveraging market-driven dynamics to spur AI advancements. Vice President-elect JD Vance’s support for open-source AI models further indicates a shift toward industry-led innovation. These strategic placements aim to facilitate collaboration and investment in AI technologies, ensuring that the private sector remains at the forefront of innovation. Expanding energy supplies for AI data centers and modernizing federal technology infrastructure are among the anticipated steps to support these endeavors.
Leadership changes at the Federal Trade Commission (FTC) and the Department of Justice (DOJ) will play a pivotal role in shaping AI policy. With Andrew Ferguson set to replace Lina Khan as Chair of the FTC, a rollback of efforts to regulate AI through rulemaking seems imminent. Instead, the FTC might focus its efforts on antitrust enforcement against Big Tech monopolies, which could have indirect implications for AI innovation. Gail Slater’s appointment as Assistant Attorney General for the DOJ Antitrust Division signals continued scrutiny of Big Tech, though it remains uncertain how this will extend to AI enforcement actions.
These leadership changes signify a strategic pivot in AI regulation, emphasizing antitrust frameworks to manage competitive dynamics rather than direct AI regulation. This approach aims to check the dominance of major tech corporations while fostering a competitive landscape conducive to innovation. By recalibrating enforcement priorities, the Trump Administration seeks to balance maintaining market fairness and encouraging AI advancements. This balance is critical to ensuring that the U.S. remains a leader in AI technologies, leveraging private-sector ingenuity under an industry-friendly regulatory environment.
Congressional AI Policy Priorities
With Republican majorities in Congress, legislative priorities will likely center on maintaining the U.S.’s competitive edge over China in critical AI applications. Efforts to codify the National AI Research Resource (NAIRR) and establish the U.S. AI Safety Institute are expected to gain traction. This legislative drive aims to bolster the nation’s AI capabilities, ensuring robust safety standards and fostering significant advancements. By embedding these initiatives into law, Congress seeks to provide a stable, long-term framework that supports continuous AI innovation and addresses emerging risks.
Bipartisan support for measures addressing digital replicas, deepfakes, and AI safety risks is anticipated to persist. Legislation like the TAKE IT DOWN Act, which the Senate has already passed, exemplifies such cooperative endeavors. This act targets challenges posed by digital replicas and deepfakes, aiming to promote responsible and ethical use of AI technologies. The continuous bipartisan alignment on these issues underscores the critical importance of maintaining ethical standards while driving technological progress. By crafting comprehensive legislation, Congress aims to mitigate risks and ensure AI’s safe integration into various domains of society.
The legislative landscape will reflect a concerted effort to balance competitive advancements with public trust and safety. Congress’s dual focus on innovation and ethical standards indicates a strategic approach to AI policy, emphasizing both economic and societal imperatives. By legislating on key issues like digital replicas and deepfakes, lawmakers aim to preemptively address potential misuses of AI, fostering a responsible innovation culture. This forward-looking legislative agenda is designed to ensure that AI technologies benefit society while mitigating associated risks.
State-Level AI Legislation
State legislatures are anticipated to play a crucial role in AI regulation, addressing specific local and sectoral concerns. States like California, Texas, and Colorado are poised to advance AI legislation on various issues, including algorithmic discrimination, generative AI watermarking, and high-risk AI systems. These proactive measures reflect a growing recognition of AI’s pervasive impact across multiple domains. By addressing these specific concerns, states aim to tailor AI regulations to their unique contexts, ensuring that local priorities and challenges are adequately met. These legislative efforts embody a decentralized approach to AI policy, complementing federal initiatives.
Diverse legislative agendas at the state level will encompass consumer protection and public safety regulations for large AI models. States have already drafted or pre-filed AI-related legislation for the 2025 legislative sessions, signaling their readiness to tackle AI’s multifaceted challenges head-on. This localized approach allows states to pioneer regulations that cater to regional needs, fostering a dynamic regulatory environment responsive to emerging technological trends. It enables a more nuanced management of AI’s impacts, balancing innovation with ethical and safety considerations specific to each state.
The growing involvement of state legislatures in AI regulation underscores the importance of federalism in technology policy. State-specific laws will address gaps that federal regulations might miss, ensuring a comprehensive governance model for AI technologies. This multilayered approach leverages local expertise and insights, fostering a balanced ecosystem where innovation can thrive alongside robust safeguards. As state legislatures continue to advance AI-related bills, they will play an integral role in shaping a regulatory landscape that is both adaptive and resilient, ensuring that AI developments benefit all communities.
Overarching Trends and Consensus Viewpoints
The 2024 U.S. election results have ushered in the second Trump Administration and a GOP-controlled Congress, setting the stage for significant changes in AI legislation and regulation. With this shift in leadership, the landscape of AI policy in the United States is on the brink of transformation. Key to the Trump Administration’s approach will be the promotion of AI innovation and competitiveness. This strategic focus aims to drive substantial investments in AI-related initiatives, particularly in areas such as research and development (R&D), national security applications, and enhancing the leadership of the U.S. private sector in AI.
Under the new administration, expect a strong emphasis on bolstering AI capabilities to maintain and elevate the country’s standing in the global technology arena. The GOP’s control of Congress will likely facilitate this agenda, ensuring that legislative support is aligned with the administration’s objectives. This means policies may prioritize incentivizing private sector R&D, securing national security through advanced AI technologies, and positioning American companies at the forefront of AI advancements.
This AI-centric agenda underscores a vital move towards creating a robust infrastructure for AI development, ensuring the U.S. remains competitive internationally. As these changes unfold, the U.S. AI landscape is poised for both rapid growth and increased emphasis on technological supremacy, shaping the future of AI policy and regulatory frameworks in the country.
