AI: Government Shifts in AI and Tech orders. RTZ #561
...the positioning plays begin, with Elon as wild card
I talked about coming tech and AI changes with the new administration and congress in January next month. The conventional wisdom is that AI and tech will get freer rein, especially on the crypto side with the SEC and other appointments.
Also expected are new directions potentially with China. And changes are expected to President Biden’s AI executive orders from last Fall.
Axios in “What Trump will do about AI” explains:
“President-elect Trump's promise to nix the Biden administration's AI executive order could end up being more of a rebrand than a repeal.”
The reasons are notable in the details:
“Why it matters: The AI executive order was a cornerstone of the Biden administration's tech policy, with sweeping directives designed to try to ensure the federal government is adopting and deploying AI responsibly.”
“Between the lines: Much of the executive order will already be implemented when Trump takes office.”
“The executive order largely did not aim to regulate the private sector.”
“The Biden administration instead leaned on voluntary commitments from companies while Congress started educating itself on the technology.”
“When Trump takes office, he'll be starting from a place with little AI regulation on the books.”
“State of play: The deadlines agencies have already met — more than 100 to date — could be difficult to reverse.”
But changes are of course possible:
“Two places where Trump could potentially overhaul the executive order are in the reporting requirements and the procurement standards.”
“Biden's executive order requires companies to tell the Commerce Department when a model was trained using computing power that exceeded a certain threshold.”
“The EO also says the government must take certain factors like climate impact into consideration when procuring AI, which the incoming administration may not be amenable to.”
That includes the Biden Administrations ‘threading the needle’ with China.
And there’s connective tissue going back to 47’s first term:
“Flashback: Trump in his first term signed an AI executive order that was then codified into law as part of the National Artificial Intelligence Initiative Act of 2020 and could continue to inform his approach.”
“The EO called for plans to issue AI technical standards and building the AI workforce.”
“In 2020, the Trump White House also established the first national AI research institutes and issued another AI executive order focused on the federal government's use of AI.”
“What they're saying: "The Trump administration can build upon that past approach by cataloging how existing laws impact AI, and by examining other key AI priorities" such as research, technical frameworks and guidelines for government use of the tech, BSA senior vice president of U.S. government relations Craig Albright told Axios.”
And there are of course wild cards ahead:
“What we're watching: Trump is known for being unpredictable, and having a pro-AI regulation adviser like Elon Musk in his ear could influence his approach.”
All this of course is happening as big tech positions itself with the new adminsitration, especially in this early phase of the new administration being shaped:
“Tech titans with billions at stake are scrambling for access and influence with President-elect Trump in the wake of his reelection.”
“Why it matters: Trump's victory will have enormous consequences for the tech industry — particularly the nascent AI boom — as it grapples with federal regulations and antitrust efforts.”
“The Big Tech CEOs who rushed to congratulate Trump after his victory have steadily worked to insinuate themselves into his orbit since then.”
“Most recently, Amazon founder and Washington Post owner Jeff Bezos told the New York Times DealBook Summit Wednesday that he's "very optimistic" about Trump's second term and his deregulatory agenda.”
“Trump "seems to have a lot of energy around reducing regulation," Bezos said. "And my point of view is, if I can help him do that, I'm going to help him."
And most everyone is hoping Elon Musk is a navigable element for fair shakes:
“The big picture: Trump has frequently had an adversarial relationship with tech industry titans, previously lambasting Meta CEO Mark Zuckerberg, Bezos' Amazon, and Google.”
“In a sign of changes to come, Trump's second presidential campaign was bolstered by one of the tech industry's biggest heavyweights — Elon Musk.”
“Musk is now set to play a role in the new Trump administration, helping lead the advisory panel the Department of Government Efficiency (DOGE).”
“State of play: Bezos isn't the only tech titan cozying up to Trump. Late last month, Meta CEO Zuckerberg dined with Trump at his Mar-a-Lago residence.”
Big new unknowables in this AI Tech Wave, adding to the ones already in play. Stay tuned.
(Update: President-elect Trump picks SF VC David Sacks as his ‘AI & Crypto Czar’)
(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)