Key Takeaways:
- The Trump administration has issued an executive order aiming to dismantle and preempt many state-level regulations of artificial intelligence.
- The order is supported by major AI industry players, including OpenAI, Microsoft, Google, Meta, Nvidia, and Andreessen Horowitz.
- The move is seen as an attempt to unify the US approach to AI development and give the country a competitive edge over China.
- Civil-society groups and elected Democrats have come out against the order, arguing it will allow AI firms to operate with little oversight.
- The order may face legal resistance from tech-regulation advocates, states, and federal lawmakers.
Introduction to the Executive Order
The Trump administration has marked OpenAI’s 10th anniversary with a significant gift: a sweeping executive order aimed at dismantling and preempting many state-level regulations of artificial intelligence. The order, announced by President Trump in a press conference, is designed to unify the US approach to AI development and give the country a competitive edge over China. Trump stated that "there’s only going to be one winner here, and it’s probably going to be the US or China," and that for the US to win, "we have to be unified. China is unified." The move is supported by major AI industry players, including OpenAI, Microsoft, Google, Meta, Nvidia, and Andreessen Horowitz, who argue that complying with multiple state regulations would be burdensome and slow the pace of AI development.
Industry Support for the Order
The AI industry’s biggest players have been pushing for this move, with OpenAI asking the Trump administration to preempt state-level AI regulations throughout the year. Microsoft, Google, Meta, Nvidia, and Andreessen Horowitz have made similar requests, citing the need for a unified approach to AI development. The firms argue that having to comply with dozens or hundreds of state regulations would be onerous, slowing the pace of AI development and putting China at an advantage. The order instructs federal agencies to identify state AI regulations that could be deemed cumbersome and take action against those policies, such as through litigation or conditioning federal funding on not enacting or enforcing the policies.
Potential Consequences and Criticisms
The order has been met with criticism from civil-society groups and elected Democrats, who argue that it will allow AI firms to operate with little oversight. Many have come out against the order, calling it a "terrible idea" that will enable AI firms and products to run amok. The order may also face legal resistance from tech-regulation advocates, states, and federal lawmakers, who may argue that it bypasses state laws and usurps congressional authority. Additionally, the order takes aim at state laws that "embed ideological bias within models," which is part of both Trump’s and Silicon Valley’s siege on equity and antidiscrimination initiatives.
The Trump-Silicon Valley Alliance
The executive order is a culmination of a trend that has been clear since Trump’s inauguration, when the leaders of Google, Meta, Apple, Amazon, and Tesla stood on the dais just behind him. This administration and Silicon Valley are broadly aligned in their technological accelerationism, with Trump heaping praise on AI industry leaders such as OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang. The Trump administration’s AI Action Plan, released this summer, made clear the president’s intention to essentially grant the chatbot industry’s every wish. However, there are not perfect harmony between Trump’s coalition and Silicon Valley, with disagreements over skilled immigration and other issues.
Emerging Populist Sentiment Against AI
There is an emerging populist sentiment against AI, with concerns about the threat it poses to some users, such as chatbot-associated delusions or AI-generated child porn, as well as spiking electricity prices due to data-center development. Despite the AI industry’s push to build a huge number of data centers, Trump’s executive order includes a carve-out for state laws regarding "data center infrastructure," which means that the federal government "would not force communities to host data centers they don’t want." Many people have started to ask reasonable questions about the circular AI economy, which has yet to produce profits for companies such as OpenAI.
Conclusion and Future Implications
The executive order may not be permanent, and the AI industry’s best bet may be to secure everything available while it can. Trump is in his last term, and the MAGA coalition is arguably fracturing. The preemption itself may not even be all that popular among MAGA Republicans, many of whom have previously been highly critical of such a policy. As the AI industry continues to evolve, it is likely that there will be ongoing debates and challenges to the executive order, and the future of AI regulation in the US remains uncertain.
