DISC InfoSec blogBusinesses leveraging AI should prepare now for a future of increasing regulation.

Apr 10 2025

Businesses leveraging AI should prepare now for a future of increasing regulation.

Category: AI — disc7 @ 9:15 am

In early 2025, the Trump administration initiated significant shifts in artificial intelligence (AI) policy by rescinding several Biden-era executive orders aimed at regulating AI development and use. President Trump emphasized reducing regulatory constraints to foster innovation and maintain the United States’ competitive edge in AI technology. This approach aligns with the administration’s broader goal of minimizing federal oversight in favor of industry-led advancements.

Vice President J.D. Vance articulated the administration’s AI policy priorities at the 2025 AI Action Summit in Paris, highlighting four key objectives: ensuring American AI technology remains the global standard, promoting pro-growth policies over excessive regulation, preventing ideological bias in AI applications, and leveraging AI for job creation within the United States. Vance criticized the European Union’s cautious regulatory stance, advocating instead for frameworks that encourage technological development.

In line with this deregulatory agenda, the White House directed federal agencies to appoint chief AI officers and develop strategies for expanding AI utilization. This directive rescinded previous orders that mandated safeguards and transparency in AI applications, reflecting the administration’s intent to remove what it perceives as bureaucratic obstacles to innovation. Agencies are now encouraged to prioritize American-made AI, focus on interoperability, and protect privacy while streamlining acquisition processes.

The administration’s stance has significant implications for state-level AI regulations. With limited prospects for comprehensive federal AI legislation, states are expected to take the lead in addressing emerging AI-related issues. In 2024, at least 45 states introduced AI-related bills, with some enacting comprehensive legislation to address concerns such as algorithmic discrimination. This trend is likely to continue, resulting in a fragmented regulatory landscape across the country.

Data privacy remains a contentious issue amid these policy shifts. The proposed American Privacy Rights Act of 2024 aims to establish a comprehensive federal privacy framework, potentially preempting state laws and allowing individuals to sue over alleged violations. However, in the absence of federal action, states have continued to enact their own privacy laws, leading to a complex and varied regulatory environment for businesses and consumers alike.

Critics of the administration’s approach express concerns that the emphasis on deregulation may compromise necessary safeguards, particularly regarding the use of AI in sensitive areas such as political campaigns and privacy protection. The balance between fostering innovation and ensuring ethical AI deployment remains a central debate as the U.S. navigates its leadership role in the global AI landscape.

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