ARTICLE
25 April 2025

A Review Of AI Governance In The United States: Trump's New Executive Order

F
Fasken

Contributor

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On January 23, 2025, Donald Trump, the 47th President of the United States, marked a significant shift by signing an executive order designed to reassert the United States' leadership...
Canada Technology

On January 23, 2025, Donald Trump, the 47th President of the United States, marked a significant shift by signing an executive order designed to reassert the United States' leadership in the global AI race, foster innovation and sustain the nation's dominant position in this strategic sector.1 This order follows his revocation of Executive Order 14110, which was signed by the Biden administration in October 2023.2

Biden's Executive Order 14110

AI, an essential tool for businesses, currently raises numerous concerns, particularly regarding biosecurity, cybersecurity, and its impact on employment and civil rights. Biden's Executive Order 14110 aimed to regulate AI development by imposing measures to ensure increased government oversight. It sought to balance innovation while protecting privacy, civil rights, workers' rights and consumer rights.3

Trump was highly critical of this framework, deeming it overly restrictive and condemning it for excessive government control that was stifling private sector innovation and compromising the dominant position of the U.S. in this area. Not surprisingly, the order was revoked on January 20, 2025, the day of Trump's inauguration.4

Trump's New Policy

On January 23, 2025, Donald Trump signed an executive order entitled "Removing Barriers to American Leadership in Artificial Intelligence" for the key purpose of "sustain[ing] and enhanc[ing] America's global AI dominance," while promoting "human flourishing, economic competitiveness and national security." Although very concise, the text has two key components:

Implementing the Revocation of the Biden Executive Order

The primary goal of the Trump executive order is to reassess all measures taken that would be incompatible with this new policy. It requires relevant federal authorities to conduct an immediate review of all policies, directives, regulations, orders and other actions taken pursuant to Biden's Executive Order 14110, with a view to suspending, revising, repealing, or proposing measures to that effect.

Developing an Action Plan to Enhance U.S. Competitiveness in AI

The order also stipulates that within 180 days of being signed into law, federal authorities must submit a detailed action plan aimed at enhancing U.S. competitiveness in AI while ensuring national security. In this context, federal authorities will work closely with leaders in the tech sector to ensure the success of this initiative. President Trump has appointed David Sacks, a key figure in the technology industry, to oversee this mission and lead the development of the strategic plan.5 Although the actual implementation of this plan remains uncertain so far, it is clear that President Trump is making every effort to position the United States as the global leader in this area.

Looking Forward

A lack of stringent regulations raises a number of concerns. First, Trump appears to place little importance on ethical issues related to AI. Unlike the Biden administration's approach, which emphasized security, data protection and social impacts, Trump's executive order focuses primarily on promoting innovation and enhancing U.S. dominance in AI.

Without a clear federal framework, AI in the U.S. could develop in an uncertain regulatory environment, with each state adopting its own set of rules.6 In fact, states such as California,7 Colorado,8 Illinois9 and New York City10 have already anticipated this need by proposing AI-specific legislation. The U.S. risks falling behind in defining global AI standards, while Europe11 and Asia12 are moving forward with increasingly stringent regulatory frameworks (see – The EU AI Act: All You Need to Know | Ressources | Fasken).

Canada, recognized as a global leader in artificial intelligence, also places great importance on the responsible and safe use of this technology. For example, through the Pan-Canadian Artificial Intelligence Strategy, launched in 2017, Canada aims to strengthen its AI leadership by stimulating innovation, attracting talent, supporting research, and promoting the ethical and responsible adoption of this technology13. Under the Canadian Standards Council, the Government of Canada supports efforts to advance the development and adoption of standards for its use. Furthermore, in October 2024, the government published the Guide on the Use of Generative Artificial Intelligence14, and in February 2025, the Pre-market guidance for machine learning-enabled medical devices15, two sets of non-binding guidelines designed to ensure the safe use of AI across various sectors. These initiatives demonstrate Canada's ongoing commitment to promoting the ethical and secure adoption of this technology.

In contrast, with the loosening of AI security regulations under the Trump administration, the lack of federal oversight in the United States could lead to a fragmented approach across states, posing a challenge for Canadian companies, particularly those that rely on AI tools or access U.S. markets. This disparity could create uncertainty for businesses and investors faced with inconsistent rules between different states or countries.

On the other hand, the efforts of Canada to promote the responsible and secure integration of AI position the country as a leading player in establishing global standards for this technology. While the United States struggles to adopt a unified regulatory framework, Canadian companies could attract international partners seeking stability and transparency in AI-related practices.

Moreover, although the executive order does not yet provide a precise framework, it is obvious that AI development is of great importance to the United States. One example of this commitment to AI is the Stargate project, aimed at developing a data center infrastructure to support AI innovation.16 This dynamic will create investment and outreach opportunities for AI developers and businesses, enabling them to position themselves in a rapidly expanding market.

Ultimately, while challenges remain, the U.S. environment remains conducive to innovation; however, regulatory developments will have to be monitored to assess the true long-term impact of the new policy.

Footnotes

1. The White House, "Removing Barriers to American Leadership in Artificial Intelligence" (January 23, 2025)

2. The White House, "Initial Rescissions of Harmful Executive Orders and Actions" (January 20, 2025)

3. Congressional Research Service, "Highlights of the 2023 Executive Order on Artificial Intelligence for Congress" (Updated April 3, 2024)

4. The White House, "Fact Sheet: President Donald J. Trump Takes Action to Enhance America's AI Leadership" (January 23, 2025)

5. Thomson Reuters, "Trump Appoints Former PayPal COO David Sacks as AI and Crypto Czar" (December 6, 2024)

6. La révocation du décret présidentiel sur l'IA par Donald Trump : quelles incidences?" (2025)

7. Ogletree Deakins, "California Civil Rights Department Unveils New Proposed Regulations on Employers' Use of AI and Automated Systems" (June 4, 2024)

8. Ogletree Deakins, "Colorado's Artificial Intelligence Act: What Employers Need to Know" (May 20, 2024)

9. Ogletree Deakins, "Illinois Steps Up AI Regulation in Employment: Key Takeaways for Employers" (August 29, 2024)

10. Ogletree Deakins, "New York City Adopts Final Rules on Automated Decision-making Tools, AI in Hiring" (April 7, 2023)

11. European Council, "Shaping Europe's Digital Future"

12. Asia Pacific Foundation of Canada, "ASEAN Issues Guidelines for Artificial Intelligence" (March 6, 2024)

13. Innovation, Science and Economic Development Canada, "Canadian Artificial Intelligence Strategy"

14. Government of Canada, "Guide to the use of generative artificial intelligence"

15. Health Canada, "Pre-market considerations for machine learning-enabled medical devices"

16. Eric Martel, "Stargate : le projet titanesque des Etats-Unis", La Presse (January 28, 2025)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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