Donald J. Trump is officially set to return to the White House as the 47th president of the United States — a shift that will likely have lasting effects for many sectors, including artificial intelligence.
AI has experienced explosive growth in both performance and popularity since Trump left office in 2021. From the release of ChatGPT in 2022 to the rise of AI agents, this technology has moved from the realm of science fiction to a daily reality across many industries. And its capacity for bias, misuse, job displacement and other issues has profound implications for not only the economy, but also national security and global power dynamics.
So far, the U.S. government’s approach to regulating AI has been a patchwork of guidelines, best practices and industry-specific rules, with no federal laws on the books directly limiting its use or addressing its risks. With his penchant for deregulation and “America First” approach, Trump could fundamentally reshape how AI is developed, deployed and governed in the United States. And the industry is bracing for change.
Trump Sees AI as an Opportunity to Compete With China
Like many in Washington, Trump appears to view AI mainly as a tool for gaining an edge over China, calling the country a “primary threat” in an interview on Logan Paul’s Impaulsive podcast.
“It brings with it difficulty, but we have to be at the forefront,” he told Paul. “We have to take the lead over China.”
But Trump also seems to be cognizant of both its potential benefits and risks, describing AI as a “superpower” with “disconcerting” and “alarming” capabilities — particularly when it comes to generative AI and deepfake technology.
Trump Promised to Repeal Biden’s Executive Order on AI Safety
Trump’s first major AI policy move will likely be to repeal President Joe Biden’s Executive Order on the Safe, Secure and Trustworthy Development and Use of AI. Issued in October of 2023, the sweeping order is the most substantial step the U.S. federal government has taken to regulate AI to date, outlining ways to monitor and prevent the risks and harms of AI while also promoting innovation, competition and the use of AI for public services.
Trump promised to do away with the order on the campaign trail. This position was later reaffirmed by the Republican Party platform, which claimed the document “hinders AI innovation” and “imposes radical leftwing ideas.”
The fate of the U.S. Safety Institute (AISI) — an organization formed in the wake of Biden’s executive order to lead the government’s AI safety efforts — hangs in the balance, too.
Although AISI has broad bipartisan support, it (among other things) may end up on the chopping block of Trump’s Department of Government Efficiency (DOGE), a new task force headed by tech mogul Elon Musk and former Republican presidential candidate Vivek Ramaswamy that aims to “slash excess regulations, cut wasteful expenditures and restructure federal agencies,” according to Trump. To prevent this, senators on both sides of the aisle are now working to protect the AISI with new legislation.
Looking ahead, some of Trump’s allies have reportedly drafted their own executive order to take the place of Biden’s. Per the Washington Post, the new order would launch a series of “Manhattan Projects” to advance AI-powered military technology, as well as establish several new “industry-led” agencies to evaluate AI models and monitor those developed by foreign adversaries. It would also roll back what the administration deems to be “unnecessary and burdensome regulations” in an aim to “make America first in AI,” the Post reported. Trump himself has yet to publicly support or oppose the supposed order, though.
What’s Next for the CHIPS Act?
To help strengthen America’s role in the development of AI chips, which are crucial components of AI development, the Biden administration signed the CHIPS and Science Act in 2022, allocating billions of dollars to U.S. semiconductor manufacturing, research and development. It also allowed Taiwan Semiconductor Manufacturing Corporation (TSMC), which makes about 90 percent of the world’s semiconductors, to build new manufacturing facilities in Arizona.
Trump criticized the federal statute during his campaign, calling it “so bad” in an interview on the Joe Rogan Experience podcast.
“We put up billions of dollars for rich companies to come in and borrow the money and build chip companies here, and they’re not going to give us the good companies anyway,” Trump told Rogan, claiming that Taiwan “stole” America’s chip industry. He also suggested that he would impose tariffs on Taiwan instead of subsidies — a familiar tactic for the president-elect.
During his first term, Trump imposed several tariffs on tech imports in order to bolster U.S. manufacturing. And this practice will likely continue in his next term, which could mean the end of the CHIPS Act down the line. But many experts believe it is unlikely he will repeal the act entirely, as it has strong bipartisan support, and several states earmarked to receive subsidies (namely Ohio, Texas and Arizona) voted for Trump.
Until the United States ramps up its chip manufacturing capabilities, tech tariffs could hurt the nascent AI industry by making computer hardware more expensive. And building that capacity could take time. TSMC’s Arizona fab, which broke ground nearly three and a half years ago, is currently aiming to start production early next year.
EPA May Loosen Environmental Restrictions, Potentially Boosting AI Development
U.S. supremacy in AI development also appears to be top of mind of Trump’s pick to lead the Environmental Protection Agency (EPA), former New York Representative Lee Zeldin. In a recent post on X, Zeldin pledged to “unleash U.S. energy dominance” and “make America the AI capital of the world.” Trump also said on Truth Social that Zeldin will “ensure fair and swift deregulatory decisions” in a way that can “unleash the power of American business” while also “maintaining the highest environmental standards.”
As the agency responsible for regulating pollution and minimizing climate change, the EPA plays a significant role in managing the environmental impact of the artificial intelligence industry — especially data centers, which gobble up enormous amounts of energy. But from the looks of it, Zeldin seems more focused on ensuring environmental protections don’t get in the way of doing business, particularly when it comes to expanding AI data centers.
“You don’t typically see an incoming EPA administrator cite U.S. AI leadership as a priority,” Vivek Chilukuri, a senior fellow of technology and national security at the Center for a New American Security, said on X. “It’s a strong signal the Trump administration will target existing environmental permitting for data centers and energy infrastructure as part of its strategy to boost American AI.”
Deregulation, by extension, could be yet another way to gain an edge over China, according to Trump.
“The electricity needs are greater than anything we’ve ever needed before, to do AI at the highest level. China will produce it because they’ll do whatever they have to do, whereas we have environmental impact people. We have a lot of people trying to hold us back,” Trump said on the Impaulsive podcast. “We’re going to have to generate a whole different level of energy. We can do it and I think we should do it.”
Trump’s Advisers, Including Elon Musk, Hold Differing Views On AI
When it comes to shaping his AI policy, Trump’s relationship with Elon Musk is especially important, given how influential Musk is in the industry. After all, he co-founded OpenAI, helping to launch the race toward artificial general intelligence. But he has since spoken out against OpenAI and other AI makers for being too left-leaning, prompting him to launch his own AI startup, xAI, which has an “anti-woke” ChatGPT equivalent called Grok.
At the same time, Musk has voiced concerns over AI’s existential risks for years, and even supported a now-vetoed AI safety bill in California that would have put guardrails on developers. He’s also expressed a desire for a regulatory body that oversees AI development to make sure it doesn’t present a danger to the public — a wish that might come true now that he is in Trump’s orbit. Indeed, several experts believe Musk will (and should) take an active part in informing Trump’s approach to AI beyond his role as the head of the Department of Government Efficiency.
“Musk could emerge as a champion for AI safety in the administration,” policy analyst David Robusto wrote in a recent blog post. “His unique combination of technical expertise and safety advocacy could be a valuable asset in developing responsible AI governance.”
But the rest of Trump’s inner circle remains fairly divided when it comes to AI and how it should be regulated.
J.D. Vance, Trump’s vice president, has dismissed discussions of AI risks as an industry ploy to create regulations that “entrench tech incumbents” and make it harder for “new entrants to create the innovation that’s going to power the next generation of American growth.” And Marc Andreessen, a top tech investor who has donated millions to Trump’s campaign and pro-Trump super PACs, is fiercely opposed to AI regulation, calling it a form of “murder.”
Meanwhile, former Fox News personality Tucker Carlson, who is reportedly heavily influencing Trump’s cabinet picks, said on the Joe Rogan Experience podcast that we should “strangle” AI “in its crib” to prevent harms against humanity. And Ramaswamy said companies should be held legally liable if their AI products cause harm during his 2023 presidential campaign.
These divisions reflect the various competing factors informing AI governance at the moment, and it is unclear how they will influence the president-elect’s decisions in his second term. But given the chaos of his first administration — where few initial advisers remained by the end — Trump’s direction on AI policy may very well be at the whims of whoever has his ear during key moments over the next four years.
