Trump Revokes Biden’s AI Executive Order: Implications and Industry Reactions

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On January 20, 2025, President Donald Trump, on his first day back in office, revoked a 2023 executive order signed by former President Joe Biden that aimed to mitigate risks associated with artificial intelligence (AI).

Details of the Revoked Executive Order

Biden's executive order, titled "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence," sought to:

• Promote competition in the AI industry.

• Prevent AI-enabled threats to civil liberties and national security.

• Ensure U.S. global competitiveness in the AI field.

It required federal agencies to establish standards for AI safety and mandated developers to share safety test results with the U.S. government before releasing AI systems to the public.

Industry Reactions

The revocation has elicited varied responses:

• Tech Industry: Some tech industry groups, including the Chamber of Commerce and the Software and Information Industry Association, criticized Biden's executive order, arguing that it could hinder innovation.

• Investors: Following the revocation, stocks of chip manufacturers like Nvidia, Advanced Micro Devices, Broadcom, and Marvell Technology saw an uptick, suggesting a positive market reaction to the rollback of AI regulations.

Implications for AI Governance

The repeal signifies a shift in the U.S. government's approach to AI regulation, potentially favoring innovation over stringent oversight. This move aligns with President Trump's campaign promises to support AI development rooted in free speech and human flourishing.

Conclusion

The revocation of Biden's AI executive order marks a significant policy change, reflecting a preference for less regulatory oversight in favor of fostering innovation. The long-term effects on AI development and governance will depend on future legislative actions and industry responses.