Biden’s Sweeping AI Order Scrapped by Trump in Regulatory Reset

President Donald Trump rescinded the Biden administration’s sweeping executive order regulating artificial intelligence, marking a significant shift in federal oversight for the rapidly advancing technology.

The move, announced on Monday, immediately halts the implementation of key safety and transparency requirements for AI developers. Biden’s mandate, which was signed in 2023, had required leading artificial intelligence companies to share safety test results and other critical information for powerful AI systems with the federal government. It also prompted the creation of the US AI Safety Institute, housed under the Commerce Department, to create voluntary guidelines and best practices for the technology’s use.

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Trump didn’t immediately say exactly what would replace the order, but the administration is likely to take a more hands-off approach. Before returning to the White House, Trump had criticized Biden’s AI regulations as heavy-handed and hindering tech innovation. Trump also appointed David Sacks, a venture capitalist and longtime critic of tech regulation, as his crypto-AI czar.

With the repeal, Trump has thrown the future of US AI policy into question at a time when other countries are jockeying to set rules of the road for the disruptive technology. Last year, the European Union passed the AI Act, perhaps the most comprehensive guardrails for AI to date. The rules ban facial recognition and require strict oversight for “high-risk” AI used in sectors like healthcare and law enforcement, among other efforts.

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The Trump administration is likely to carry on some elements of Biden’s policy, such as promoting US competitiveness on AI against China. Trump has framed the global race for AI leadership as a national security priority. He has also promised to boost domestic energy production to meet AI demands and secure foreign investments in the technology and related infrastructure projects.

During his first term, Trump issued two executive orders on AI that established a set of principles for safe and trustworthy government use of the technology and boosted funding for research and development.

Apart from Biden’s executive order, Washington has struggled to advance federal legislation on AI, spurring some states to develop their own frameworks.

In California, where many top AI companies are based, legislators have passed several bills related to generative AI, including a crackdown on AI deepfakes and more disclosures to bolster transparency for training data. Another controversial bill in the state that would’ve imposed a suite of safety requirements for AI companies was ultimately vetoed after fierce industry opposition.

Colorado and Illinois, meanwhile, have passed laws aimed at protecting people from algorithmic discrimination in hiring. New York will also require businesses to report AI-related job losses under a new order from the governor.

To contact the reporters on this story:
Jackie Davalos in Washington at jdavalos10@bloomberg.net;
Oma Seddiq in Arlington at oseddiq@bloomberg.net

To contact the editors responsible for this story:
Seth Fiegerman at sfiegerman@bloomberg.net

Michael Shepard

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