Trump's New AI Regulatory Approach: A Hands-Off Strategy Set to Contrast Biden's Policies

Trump plans a hands-off AI action plan contrasting Biden's regulatory approach.

Key Points

  • • Trump's AI 'action plan' emphasizes a competitive, hands-off regulatory approach.
  • • The plan aims to ease export barriers and reduce regulatory hurdles.
  • • Potential executive orders may target developers with 'woke' biases.
  • • Legal experts raise concerns about constitutional challenges to these measures.

Former President Donald Trump is preparing to unveil a new AI 'action plan' that promotes a minimal regulatory framework for artificial intelligence, which significantly contrasts the Biden administration's regulatory stance. Scheduled for release on July 23, 2025, Trump's plan aims to enhance the United States' competitive edge in AI development by reducing export restrictions on AI technology and streamlining federal regulations that are perceived to hinder growth in the sector.

The proposed 'action plan' seeks to address barriers that currently exist for AI developments, including faster permitting processes for AI data centers and increased incorporation of AI technologies within the Pentagon. In addition, the Trump administration is expected to issue executive orders that would facilitate exporting AI chips to allied nations. The plan may also include controversial measures aimed at restricting federal contracts from going to AI developers who are deemed to espouse 'woke' ideologies.

Legal experts have voiced concerns regarding these proposals, particularly the potential for constitutional challenges. UC San Francisco School of Law professor Rory Little noted that banning developers based on ideological grounds could constitute content-based discrimination, thus violating the First Amendment. Nevertheless, major AI firms such as Amazon, Google, and OpenAI are expected to view these executive orders as opportunities for negotiation, a sentiment echoed by OpenAI CEO Sam Altman, who mentioned their increasing collaboration with government entities.

The upcoming announcements draw from an executive order signed by Trump in his initial week in office, which focused on maintaining U.S. dominance in AI for reasons of economic and national security. As the situation develops, the implications of Trump's proposed policies could reshape the regulatory landscape for AI in the United States, fostering a more competitive yet contentious environment compared to the regulations fostered under Biden's administration.