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Navigating the Shifts in AI Regulation - Implications of the New Executive Order

Writer's picture: Mark GilmorMark Gilmor

This week, a significant pivot in U.S. artificial intelligence policy emerged as President Donald Trump signed an executive order on January 23, 2025, titled the "Artificial Intelligence Action Plan." This move seeks to assert America's leadership in AI while simultaneously dismantling some of the regulatory frameworks established under former President Joe Biden's administration. Among the repealed measures is the 2023 executive order mandating rigorous safety tests for AI systems with potential risks to national security, the economy, or public health. The implications of this shift for AI security and innovation are profound and far-reaching.


The Importance of Guardrails in AI Innovation
The Importance of Guardrails in AI Innovation

A Balancing Act

Under the Biden administration, the 2023 executive order sought to mitigate risks associated with AI by enforcing rigorous safety and transparency standards. These measures aimed to ensure that high-risk AI systems underwent comprehensive evaluations to prevent unintended consequences. The newly enacted Artificial Intelligence Action Plan, however, emphasizes accelerating AI innovation by reducing regulatory barriers. While this approach aligns with bolstering America’s competitive edge in the global AI race, it raises critical concerns about the security and ethical oversight of rapidly deployed AI technologies.


What’s at Stake?

AI systems are inherently double-edged swords. Their potential to revolutionize industries, enhance productivity, and improve public services comes with vulnerabilities that adversaries can exploit. The Biden-era safety tests aimed to mitigate these vulnerabilities by identifying and addressing risks before deployment. With the removal of such mandates, the industry’s reliance on self-regulation increases, posing several questions:

  1. Who ensures accountability? Without mandated safety assessments, the burden of risk mitigation shifts to developers and private entities.

  2. How will vulnerabilities be managed? Accelerated innovation might leave gaps in cybersecurity, leading to a surge in threats from AI-powered malware and other cyber risks.

  3. What are the long-term consequences? As AI systems grow increasingly autonomous, ensuring their resilience against misuse or malfunction becomes paramount.


Navigating the Innovation-Security Tradeoff

While deregulation may spur innovation, it also heightens the need for robust industry standards and international collaboration. Companies and developers must now take proactive steps to ensure the safety and reliability of their AI systems. Key strategies include:

  • Adopting a risk-based approach: Prioritizing the identification and mitigation of high-impact risks in AI development.

  • Enhancing transparency: Making AI systems more interpretable and their decision-making processes auditable.

  • Collaborating across borders: Engaging in global partnerships to create standardized guidelines for AI safety and security.


Charting a Path Forward

The Artificial Intelligence Action Plan underscores the need to balance rapid technological advancement with ethical and security considerations. Policymakers, industry leaders, and security experts must work together to create frameworks that foster innovation without compromising safety. This new chapter in AI regulation challenges us to reimagine governance models that can keep pace with the accelerating evolution of AI technologies.


As the U.S. repositions itself in the global AI landscape, it must also prepare for the risks accompanying such a strategy. The future of AI security lies in finding harmony between fostering innovation and ensuring the protection of society from potential AI-related harms. Interested in learning more? Book a time.

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