Trump revoking Biden’s AI executive order will cause chaos, experts predict

The incoming Trump administration’s expected repeal of President Biden’s AI executive order in 2025 could significantly impact both AI development and enterprise adoption of artificial intelligence technologies.

The current landscape: Biden’s executive order established government oversight offices and encouraged AI model developers to implement safety standards, creating a framework for responsible AI development.

• The order focused primarily on model developers while also affecting enterprise AI adoption and implementation
• Companies aligned with Trump, such as Elon Musk‘s xAI, may benefit from decreased regulation
• Enterprises could face challenges including fragmented regulations and reduced data transparency

Regulatory fragmentation concerns: Without federal oversight, states may implement their own AI regulations, creating potential compliance challenges for businesses.

• California’s proposed SB 1047, which would have required AI “kill switches,” represents the type of state-level regulation that could emerge
• States are likely to continue pursuing individual AI regulations, despite California Governor Newsom’s veto of SB 1047
• Companies may struggle to navigate varying requirements across different jurisdictions

Impact on responsible AI practices: Industry-led accountability initiatives may become more critical in the absence of federal oversight.

• Companies face increasing pressure from customers to maintain AI safety standards
• Microsoft and other major tech companies are preparing their systems for compliance with the EU’s AI Act
• Organizations are advised to incorporate responsible AI practices from the early stages of development
• Access to training data transparency could become more limited without federal requirements

Research and funding implications: Government support for AI research and development could shift significantly under the new administration.

• High-risk, early-stage AI projects traditionally supported by government funding may face uncertainty
• The AI Safety Institute and other oversight offices have guaranteed budgets through 2025
• Previously allocated funding under the AI Initiative Act will continue, though its implementation may change

Looking beyond surface impacts: The transition period between administrations creates uncertainty for AI governance, but several factors suggest the changes may not be as dramatic as they appear.

• Existing budget allocations will maintain some continuity in government AI initiatives
• Market demands for responsible AI practices may sustain industry self-regulation
• International regulations, particularly from the EU, will continue to influence US companies’ AI practices regardless of domestic policy changes

A pragmatic path forward: While preparing for potential regulatory changes, enterprises should focus on establishing robust internal AI governance frameworks that can adapt to evolving requirements while meeting customer expectations for responsible AI deployment.