Trump Administration Alters Direction on Artificial Intelligence Oversight
The Trump administration has unveiled a new AI governance framework, as outlined in "America’s AI Action Plan" (July 2025), which emphasizes a deregulatory, pro-innovation approach aimed at accelerating American AI development and achieving "global AI dominance."
Key features of the new framework include: - Removing regulatory barriers - Promoting ideologically "neutral" AI systems - Investing in infrastructure - Supporting private-sector innovation with streamlined permitting and federal procurement reforms - Prioritizing export promotion and competition-driven international engagement
This policy shift formally repeals the Biden administration's Executive Order 14110, which had stressed risk mitigation, civil rights protections, equity considerations, and advanced AI oversight.
Under the Trump administration, the focus is on deregulation, infrastructure buildout, and a national strategic focus on competitiveness and global leadership, including export controls and international AI diplomacy. References to DEI (Diversity, Equity, and Inclusion) in NIST’s AI Risk Management Framework have been removed, reflecting a shift away from equity-based development goals.
In contrast, the Biden administration’s AI framework focused more on precautionary regulation, civil rights and equity integration, risk management, and oversight of advanced AI models. The Biden approach emphasized managing AI risks and protecting civil rights alongside innovation, with stricter regulatory guardrails and model evaluations, particularly from the National Institute of Standards and Technology (NIST).
Organizations should consider a phased approach to adaptation, with immediate policy review and compliance updates, short-term strategic planning and partnership development, medium-term operational restructuring, and long-term international expansion and market development. Business leaders should review and update AI development strategies, assess public-private partnership opportunities, evaluate international expansion potential, and update compliance frameworks for new regulations.
The new framework is expected to create significant ripples throughout the U.S. technology sector, potentially leading to increased venture capital investment, accelerated commercialization of AI technologies, enhanced competition in the AI marketplace, and greater accessibility to government contracts for smaller firms. It could reshape competitive dynamics within the AI industry, with reduced barriers to entry for new market participants.
The new export control framework introduces a more nuanced approach to international AI collaboration, featuring streamlined export procedures for allied nations, enhanced screening for sensitive technologies, reciprocal access agreements with partner countries, and expedited licensing for commercial AI applications.
Looking further ahead, the new framework could lead to structural changes in AI industry composition, evolution of new AI business models, shift in global AI development patterns, and emergence of new competitive dynamics. The publication suggests several key operational adjustments, such as restructuring AI development teams for open-source collaboration, establishing new compliance monitoring systems, developing international partnership strategies, and creating frameworks for public-private engagement.
Sources: [1] White House, Office of Science and Technology Policy. (2025, July). America’s AI Action Plan. Retrieved from https://www.whitehouse.gov/ai/
[2] National Law Review. (2025, July). Trump Administration Announces New AI Governance Framework. Retrieved from https://www.natlawreview.com/article/trump-administration-announces-new-ai-governance-framework
[3] The Verge. (2025, July). Trump administration unveils AI plan, reverses Biden's focus on equity. Retrieved from https://www.theverge.com/2025/7/22/23074434/trump-administration-ai-plan-ai-action-plan-deregulation-equity
[4] TechCrunch. (2025, July). Trump administration unveils AI plan, reversing Biden's focus on equity. Retrieved from https://techcrunch.com/2025/07/22/trump-administration-unveils-ai-plan-reversing-bidens-focus-on-equity/
- The new AI governance framework, outlined in "America’s AI Action Plan" (July 2025), emphasizes a deregulatory approach that aims to accelerate American AI development and achieve "global AI dominance."
- Under the Trump administration, this focus includes removing regulatory barriers, promoting ideologically "neutral" AI systems, investing in infrastructure, and supporting private-sector innovation with streamlined permitting and federal procurement reforms.
- This policy shift has the potential to increase venture capital investment, accelerate commercialization of AI technologies, enhance competition in the AI marketplace, and provide greater accessibility to government contracts for smaller firms.
- Business leaders should review and update AI development strategies, assess public-private partnership opportunities, evaluate international expansion potential, and update compliance frameworks for new regulations.
- The new export control framework introduces a more nuanced approach to international AI collaboration, with streamlined export procedures for allied nations, enhanced screening for sensitive technologies, reciprocal access agreements with partner countries, and expedited licensing for commercial AI applications.
