With any new Presidential administration comes many changes, and the new administration is no exception. We’ve already written several blogs on the policy changes set in motion by the new administration, including the impacts of the Department of Government Efficiency (DOGE) and numerous executive orders. Another area where the Trump Administration diverges greatly from the Biden administration is in their approach to Artificial Intelligence (AI). In this blog, we’ll discuss the differences between their approaches and how the Trump Administration could shape the future of AI in the federal government.
What Actions has the New Administration Taken Related to AI Policy?
The Trump Administration has begun taking actions to reverse much of the Biden administration’s AI policy. In one of his first actions after taking office, President Trump issued an Executive Order (EO) titled “Initial Recissions of Harmful Executive Orders and Actions,” which revoked a significant number of Executive Orders issued by the Biden Administration.
Among these was Executive Order 14110, “Safe, Secure, and Trustworthy Development and Use of AI,” which focused on regulations surrounding the development and use of AI. President Trump also issued an Executive Order, “Removing Barriers to American Leadership in Artificial Intelligence,” which lays out the new administration’s stance on AI development and use.
We’ll discuss the similarities and differences between these Executive Orders later on in the article, but Executive Orders are not the only actions related to AI that the Trump Administration has taken. On January 21, President Trump announced the creation of “Stargate,” a new partnership between AI companies OpenAI, SoftBank, and Oracle, which aims to invest $500 billion in AI infrastructure in the US by 2029.
President Trump has said that he intends to use emergency declarations to help expedite Stargate’s infrastructure production, saying that they “have to produce a lot of electricity and we’ll make it possible for them to get that production done very easily.” The White House’s public support of Stargate, coupled with the Executive Orders President Trump has issued, demonstrate clearly that the Trump Administration is all-in on AI.
How Does the Trump Administration’s AI Policy Differ from the Biden Administration?
AI is different from other political issues, in that the Biden Administration and the Trump Administration are actually both supporters of AI development. The differences in policy reflect differences in their approaches to how AI should be developed and used, and what role the government should play in regulation, rather than differences in opinion on the usefulness of AI.
The Biden Administration, while acknowledging the uses and benefits of AI, focused more heavily on regulating development to ensure regulated and responsible AI use. The Trump Administration is doing away with Biden-era regulations in favor of infrastructure investments. The difference between the two administrations’ policies can be clearly seen through a comparison of their main Executive Orders on the topic of AI. As mentioned above, President Biden’s AI-centric Executive Order “Safe, Secure, and Trustworthy Development and Use of AI,” focused heavily on regulations surrounding the development and use of AI. While it did include a section on “Advancing Federal Government Use of AI,” the majority of the Executive Order was dedicated to various regulations related to the security of AI systems and various forms of consumer protection.
President Trump’s Executive Order on AI, “Removing Barriers to American Leadership in Artificial Intelligence,” makes clear that his administration views these regulations as barriers, and directs agencies to review any actions taken as a result of the Biden Executive Order and suspend, revise, or rescind, those which are no longer in line with the new administration’s stance.
What Does the Future of AI in the Federal Government Look Like?
The Trump Administration has a clear, strong interest in AI systems, technology and infrastructure, and a strong disinterest in regulation of the AI industry. It’s likely that we will continue to see heavy investments in AI systems and infrastructure from the federal government, both monetarily and through executive actions. If you offer AI solutions, we suggest you keep an eye out for upcoming contracting opportunities that support this industry.
While the Trump Administration’s anti-regulatory stance may help American AI companies innovate in the short-term, it could lead to complications in the long run, as other countries such as Canada, Japan, and the EU are moving toward more regulatory frameworks. Companies that seek to operate internationally may encounter difficulties navigating stricter frameworks outside of the US.
Have More Questions About Changes in the Federal Government?
If you want to know more about the future of AI in the federal government, or are wondering how your business can take advantage of upcoming AI-related investment opportunities, reach out to one of our consultants and we’d be happy to direct you to the right place. If you want to stay on top of upcoming changes and updates that impact federal contractors, check out our blog and monthly newsletter.
