On January 20, 2025, President Trump rescinded 78 Biden-era executive orders, including EO 14110, which regulated AI development. This move, part of EO 14145, reflects a shift toward deregulation to maintain U.S. AI dominance over China. The White House announcement stated: “President Donald J. Trump signed an Executive Order eliminating harmful Biden Administration AI policies and enhancing America’s global AI dominance.”
Before leaving office, Biden pushed key AI policies:
The order dismantles previous AI regulations and sets forth new directives to reinforce U.S. dominance in artificial intelligence. It mandates a thorough review of AI policies across federal agencies, ensuring that no regulatory framework hinders AI advancement. Additionally, the administration is commissioning an AI Action Plan, led by key advisors, including the White House AI & Crypto Czar and the National Security Advisor, to chart a path forward. Furthermore, federal AI governance guidelines will be revised to eliminate barriers that may be slowing AI innovation.
On January 21, Trump announced a $500B private AI investment led by Stargate, a Texas-based joint venture between OpenAI, SoftBank, and Oracle. With an initial $100B infusion and a goal of 100,000 new jobs, the strategy prioritizes market-driven AI expansion over federal oversight. This directive builds upon Trump’s prior AI initiatives, notably his 2019 Executive Order, which emphasized increasing AI research funding, setting national AI research priorities, and establishing AI regulatory guidance. His administration previously sought to position the U.S. as the global leader in AI by doubling research investments and creating AI research institutes. This latest action extends that agenda, reaffirming the administration’s belief that AI innovation thrives best in an environment with minimal government intervention.
Multiple valid concerns have surfaced in relation to the impact of the new direction of the American AI leadership. Without oversight, there is a risk of unchecked AI proliferation, which could lead to security vulnerabilities and ethical dilemmas. National security experts warn that AI’s deep integration with defense and cybersecurity requires measured regulation to prevent exploitation by foreign adversaries or malicious actors. Additionally, the order’s emphasis on removing ideological bias raises questions about how fairness and accountability will be maintained in AI systems, as the absence of oversight may lead to unintended consequences in automated decision-making.
Advocates for deregulation argue that excessive oversight hinders progress and reduces America's competitive edge in a fast-moving global AI race. Critics warn that a completely unregulated AI ecosystem could lead to unforeseen consequences, from bias in decision-making algorithms to national security threats. The coming months will determine whether this policy shift truly strengthens U.S. AI leadership or exposes the country to new risks.