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.
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