AI startups anticipate looser regulations under Trump

AI policy shift on the horizon: Donald Trump’s expected return to the White House has AI executives and investors anticipating a more innovation-friendly approach to artificial intelligence regulations and policies.

• Trump has vowed to repeal President Biden’s landmark AI executive order, which established initial regulatory frameworks for the generative AI boom, focusing on safety and national security.
• Many in the tech industry view Biden’s order as stifling and burdensome, with some arguing it puts the U.S. at a disadvantage in AI development.
• Trump’s campaign platform emphasizes AI development rooted in free speech and human flourishing, signaling a potential loosening of regulatory mandates.

Key industry reactions: AI leaders and investors are largely optimistic about the prospects of a more permissive regulatory environment under Trump’s administration.

• OpenAI CEO Sam Altman stressed the importance of maintaining U.S. leadership in developing AI with democratic values.
• Anthropic cofounder Jack Clark expressed willingness to work with the Trump Administration to advance U.S. leadership in AI and discuss safety issues of frontier systems.
• Sarah Guo, founder of Conviction VC, supports Trump’s more innovation-friendly approach, arguing that pre-regulation puts the U.S. at a disadvantage.

Potential policy changes: The incoming administration is expected to make several key changes to AI policy and regulation.

• A reversal of Biden’s executive order could threaten the U.S. AI Safety Institute, which was established to safely advance AI adoption and collaboration.
• Export controls on chips and AI technology may be expanded, potentially favoring U.S. manufacturing and innovation.
• Antitrust scrutiny is expected to lessen, possibly leading to more acquisitions of AI startups by tech giants.

Trump’s AI advisory circle: The former president has begun surrounding himself with AI industry stakeholders and business leaders to shape his tech policy.

• Michael Kratsios, former White House chief technology officer and current Scale AI managing director, is heading up tech policy matters on Trump’s transition team.
• Elon Musk is reportedly part of a small group consulting with Trump on AI issues, alongside Palantir adviser Jacob Helberg.
• J.D. Vance, Trump’s running mate, is considered a supporter of open-source technology, which could influence AI policy direction.

International implications: Trump’s AI policies will have global ramifications as other countries continue to advance their own regulatory frameworks.

• The U.K. and European Union are likely to proceed with their AI regulations regardless of U.S. policy changes.
• There’s concern about whether the U.S. will maintain a seat at the table in shaping international AI regulations or allow other countries to set the rules.

Balancing innovation and safety: While many in the industry welcome a more permissive environment, some caution that certain regulations remain necessary.

• Healthcare-facing AI startups, for example, emphasize the need for regulatory clarity to ensure patient safety.
• Some AI safety experts hope the incoming administration will continue to prioritize addressing AI risks to national security.

Uncertain road ahead: Despite the optimism, the exact shape of Trump’s AI policies remains to be seen.

• It may take time for Trump and his team to fully understand AI and develop comprehensive policies.
• The administration will need to balance competing interests, including Musk’s pro-regulation stance and Vance’s support for open-source technology.
• The challenge lies in fostering innovation while addressing legitimate safety and security concerns in the rapidly evolving field of AI.