Trump Boosts AI Deregulation Push as Big Tech Lends Powerful Support

Major tech firms are pushing the administration of President Donald Trump to loosen rules on building artificial intelligence, arguing it is the only way to maintain a US edge and compete with China.

Spooked by generative AI's sudden advance, governments initially scrambled to develop guardrails, as major tech companies rapidly integrated the technology into their products.

Since taking office in January, the Trump administration has shifted focus toward accelerating AI development at all costs, pushing aside concerns about the models suffering hallucinations, producing deepfakes, or destroying human jobs.

"The AI future is not going to be won by hand-wringing about safety," Vice President JD Vance told world leaders at a recent AI summit in Paris.

This communication disturbed international allies, notably Europe, which had confidently set up the EU AI Act as a benchmark for regulating the technology.

However, confronted with America’s changed course, European authorities are now shifting their focus in communications towards investment and innovation instead of security.

"Significant reductions in regulatory efforts are expected globally," clarified David Danks, who teaches data science and philosophy at the University of California San Diego.

This signal has definitely been noticed in the United States, yet we're observing the same trend in Europe as well.

'Step back'

Technology firms are taking advantage of this rollback in regulations, pursuing the liberty to advance AI innovations which they argue were overly restricted during the Biden administration.

One of Trump's first executive actions was dismantling Biden's policies, which had proposed modest guardrails for powerful AI models and directed agencies to prepare to oversee the change.

Karen Silverman, CEO of AI advisory company Cantellus Group, pointed out, "It’s evident that we’re moving away from the concept of having a unified comprehensive strategy for regulating artificial intelligence."

The Trump administration has extended an invitation to industry leaders to discuss their policy ideas, stressing that the U.S. needs to retain its status as the "unquestionable frontrunner in AI technology," with a focus on reducing limitations for investors.

Industry contributions will help form the White House's upcoming AI strategy, anticipated this summer.

The request has resulted in expected reactions from key stakeholders, revealing a prevailing sentiment: China poses an existential challenge that can solely be tackled by forging an unrestricted route for businesses free from regulatory constraints.

OpenAI’s entry likely presents the most stark comparison against China by showcasing DeepSeek, a generative AI model developed in China at significantly lower cost than typical U.S. expenses. This serves to underscore the competitive challenge posed.

As stated by OpenAI, U.S. AI progress needs protection from "autocratic regimes aiming to strip individuals of their liberties, as well as excessive regulations and bureaucratic hurdles that could hinder the realization of these technologies."

According to AI analyst Zvi Mowshowitz, OpenAI aims for a scenario where the federal government does not impose regulations on AI. Additionally, they seek to prevent individual U.S. states from implementing their own regulations.

At present, OpenAI is involved in legal proceedings with the New York Times regarding the utilization of its material for training purposes. Additionally, OpenAI contends that limiting access to internet-based data could result in ceding victory in the AI competition to China.

"Without equitable access to copyrighted content... America suffers, along with the triumph of democratic AI," according to OpenAI.

A different response, put forth by a collective of Hollywood stars such as Ben Stiller and Cynthia Erivo, dismissed this idea, highlighting the conflicting stance between the film and TV sectors and the new technology.

'Essential'

In their reply, Meta highlighted their open Llama AI model as a key component in the quest for American technological dominance.

"The open-source models are crucial for the U.S. to secure victory in the AI competition with China and maintain American supremacy in artificial intelligence," the firm declared.

CEO Mark Zuckerberg has gone so far as to support implementing retaliatory tariffs against Europe’s regulatory initiatives.

Google emphasized investments in infrastructure to address AI's significant energy demands.

Similar to its competitors, Google also resists state-specific regulations in the United States, arguing that such rules could weaken America’s technological supremacy.

Even though there is a drive for limited supervision, experts warn that generative AI poses intrinsic dangers, regardless of whether or not it faces governmental regulations.

Danks cautioned, "Negative publicity affects everyone, and if your technology causes severe negative consequences, you will face intense scrutiny from the media."

He mentioned that companies must take steps to reduce the risks.