AI Under the Trump Administration: What to Expect

Despite minimal focus on AI during his campaign, President-elect Trump has pledged to roll back the Biden administration’s October 2023 executive order on AI, a stance now part of the official Republican platform.

Trump’s first term saw efforts to “maintain American leadership” in AI and ensure its “trustworthy” use. In contrast, the Biden administration’s order took a broader approach, requiring agencies to reassess existing regulations through an AI lens and establishing a new AI Safety Institute at the National Institute for Standards and Technology (NIST). 

• Unlike the European Union, however, the U.S. Congress has yet to pass federal AI legislation creating an enforceable framework.

While both parties agree on the need to define the government’s role in overseeing AI’s development and use, the focus and breadth of the role differ. 

• Republicans worry that overregulation will stifle innovation and may ease the rules to compete with China. 

• Republicans are also likely to remove elements of the Biden administration’s AI Bill of Rights, such as protections against algorithmic discrimination, equity, and civil rights concerns.

• Both parties agree, however, on the need for AI protections related to national security and privacy.

What's next: At the state level, AI legislation will continue to proliferate. In 2024, at least 40 states introduced bills addressing AI use, including discrimination and automated employment decision-making.

Corporate boards: Just 2% of directors in Deloitte’s global board survey said their boards are highly knowledgeable about AI. Most (79%) by contrast, reported limited experience. 

• To strengthen AI expertise, some boards are recruiting directors with AI experience or bringing in outside experts to increase knowledge and fluency.

Why it matters: According to Littler’s 2024 AI C-Suite Survey, 52% of respondents say regulatory uncertainty has slowed AI use in HR functions because of concerns about discrimination and liability. While government guidance may decrease, especially in areas affecting its use by HR, the risk of lawsuits remains. Companies must ensure robust AI governance through strong board oversight and internal policies.