Industry analysts respond to Trump revoking Biden-era AI safety measures

President Trump revoked a key 2023 executive order on AI safety and security standards within hours of taking office in January 2025, marking a significant shift in the U.S. government’s approach to AI regulation.

Key policy changes: Executive Order 14110, which established government-wide guidelines for responsible AI development and deployment, has been removed from the White House website along with its accompanying fact sheet.

• The original order was enacted following voluntary agreements with major tech companies including OpenAI, Google, Microsoft, Meta, Amazon, Anthropic and Inflection AI
• The move represents one of many executive orders Trump plans to rescind as part of his administration’s “Initial Rescissions of Harmful Executive Orders and Actions”

Market implications: Industry analysts see both potential benefits and risks in this deregulatory approach.

• Bradley Shimmin of Omdia suggests the move could benefit smaller AI companies by preventing regulatory capture by larger players
• The decision may increase access to open and transparent AI solutions
• U.S. businesses will still need to comply with state-level initiatives and international regulations like the EU AI Act

Expert concerns: Several industry experts have raised significant concerns about removing federal oversight.

• Natalia Modjeska, Omdia research director, warns that eliminating safeguards could paradoxically slow AI adoption by increasing uncertainty and risk
• The absence of standards shifts risk mitigation responsibilities to individual companies, potentially increasing costs and liability
• Without federal guidelines, there are heightened risks of algorithmic bias, privacy violations, and national security threats

Competitive considerations: The policy shift appears aimed at accelerating U.S. AI development in the global technology race.

• The administration’s approach prioritizes rapid AI advancement to maintain competitiveness, particularly against China
• Major technology companies may benefit from reduced compliance requirements
• Industry leaders like Elon Musk have historically advocated for more, not less, AI regulation

Strategic implications: While the Trump administration aims to reduce regulatory oversight to speed innovation, the move could create regulatory gaps and uncertainty in the AI industry, potentially leading to a more fragmented approach to AI governance across state and international jurisdictions. A new federal framework may still emerge as the administration develops its technology policy agenda.