The future of tech under Trump: Embracing deregulation, advancing AI and promoting American interests
By Kevin Smith, Wipfli LLP, Partner
With his earliest executive actions, President Trump outlined his agenda for the technology sector, highlighting his goals of reducing regulations, promoting advancements and solidifying the United States’ dominance in key areas like artificial intelligence (AI) and digital finance.
The policies of the previous administration, which focused on fairness and non-discrimination in AI and technology development, were explicitly overturned by Trump in order to eliminate perceived obstacles to innovation. Additionally, on January 27, he reversed the funding for initiatives promoting clean energy, diversity, equity and inclusion (DEI), as well as environmental, social and governance (ESG) efforts.
These changes in direction have wide-ranging consequences for the advancement and oversight of AI, as well as the government’s involvement in new technologies. It is anticipated that this administration will adopt a contrasting perspective on matters like regulating social media and funding sustainable technology.
The changing face of leadership
Those chosen for leadership positions by Trump consist of experienced professionals and supporters of a free-market economy, indicating a focus on promoting business. A large portion of these appointees have prior experience in leading private companies, investing in new ventures or starting their own businesses, rather than holding traditional government or academic positions.
Jared Isaacman, the chosen candidate to head NASA, is the CEO and creator of a payment processing firm. David Sacks, a former executive at PayPal, has been appointed as the Special Advisor for AI and Crypto, a newly established position. Additionally, Elon Musk is in charge of the newly established U.S. Department of Government Efficiency under President Trump.
A number of these individuals, such as Sacks and Musk, have publicly expressed their support for reducing federal regulation in the areas of AI, social media and cryptocurrency. These selections also uphold Trump’s belief in the importance of AI and space control as issues of national security.
Artificial intelligence
On January 23, 2025, President Trump annulled the AI policies set during the Biden administration that obligated AI creators to perform safety evaluations and disclose outcomes to the U.S. government if their technology posed potential dangers to national security, the economy, public health or safety. In lieu of these policies, President Trump issued a new executive order, requiring the establishment of a federal AI action plan within 180 days to promote American leadership in artificial intelligence.
The request for a national action plan implies a change towards a central authority regulating AI, which could potentially restrict states’ power to regulate AI. As a result, this may cause contradictory guidelines between state and federal levels, causing tension in states that have already implemented their own AI governance policies.
Regulations and policies are often put in place to minimize the negative impact of AI by creating guidelines for oversight, accountability, ethical standards and educating the general public. The AI policy put forth by Trump must cover various potential dangers such as deepfakes, spreading false information, biased algorithms, breaches of privacy, cyberattacks and job displacement.
On January 23, Trump took action by issuing an executive order that aims to provide regulatory clarity for digital financial technologies such as blockchain and cryptocurrencies. This was done with the goal of strengthening America’s leadership in this field.
The current administration has not made any changes to the export regulations for advanced computer chips that were put in place under Biden. However, they are currently reviewing export policies and other tactics in order to uphold the United States’ dominance in artificial intelligence, which has recently been challenged by China. On January 27, Chinese company DeepSeek made a significant announcement about their advancements in AI, without the use of high-performance chips. This has led to concerns about the efficacy of the existing export restrictions in the U.S.
The proposition from the Trump administration, aiming at promoting domestic production, suggests implementing tariffs on semiconductors produced in Taiwan. While this measure could potentially increase American production and decrease dependence on foreign manufacturing, it may also lead to higher costs for tech companies reliant on these components.
In the field of artificial intelligence, the final announcement made by Trump was about a partnership called Stargate. This joint venture, worth $500 billion, aims to develop cutting-edge AI infrastructure in the United States. The project is a collaboration between major tech companies such as OpenAI, Oracle and SoftBank, along with the investment firm MGX. The main goals of this initiative are to improve data center availability and generate employment opportunities within the country.
Section 230
According to the Communications Decency Act of 1996, also known as Section 230, online platforms are safeguarded from being held liable for any content created by users. This legal protection ensures that companies like Facebook and YouTube cannot be sued for any defamatory or inaccurate content posted by their users. Additionally, these platforms have the right to moderate or remove content that violates their policies, such as hate speech and illegal activities, without fear of facing legal action for censorship.
The topic has sparked numerous debates, with some individuals claiming that platforms have a bias towards censoring content, while others argue that they do not do enough to eliminate harmful content. Certain legislators are pushing for tech companies to be responsible for the content they permit, while others caution that altering Section 230 could impede freedom of speech.
The issue of Section 230 has been a repeated topic of discussion for Trump, with calls for reform or repeal. In 2020, he used an executive order to request agencies to review the law, but no changes were made. If his efforts are successful during his current term, it may lead to legal and political conflicts.
- Reducing content moderation could potentially result in an increase in harmful behavior such as hate speech, harassment, false information or AI-generated disinformation.
- Civil rights and advocacy groups may resist, contending that looser policies on Section 230 unfairly target marginalized and underprivileged communities. As a result, they may take legal measures against technology corporations for showing prejudice towards these groups.
- Some states may enact their own regulations that require more stringent monitoring of content, resulting in potential legal disputes between state and federal entities, similar to the ongoing conflicts regarding abortion legislation.
Andrew Ferguson, the current chair of the Federal Trade Commission, will have an important role in monitoring social media companies. In his efforts to promote accountability among tech companies, Ferguson has emphasized the importance of protecting freedom of speech.
Altering or abolishing Section 230 may heighten the legal vulnerability of tech companies and serve as a trial for the effects of deregulation on internet discourse and accountability.
Technology initiatives for the environment an inclusivity
There may be difficulties ahead for green, DEI and environmental, social and governance (ESG) technology companies during this administration, as there have been sudden alterations to federal funding and opposition to corporate initiatives that are deemed “progressive” by Trump. This has resulted in a decrease in funding and support for clean energy, DEI and ESG programs, posing challenges for tech companies operating in these areas to obtain funding or government contracts.
Sustainable startups that heavily depend on grants and government incentives will experience the consequences right away, along with technology companies that provide diversity, equity and inclusion analytics solutions for corporate recruitment and workforce administration.
Certain states could potentially try to resist the federal government’s efforts to undo progress, much like the ongoing disagreements surrounding Section 230. As a result, the actions of Trump may ultimately decrease the demand for these types of technologies.
Effects on the technology field
The primary goal of the Trump administration is to facilitate the operations and advancements of American businesses by reducing regulatory barriers. The overall impact of deregulation and “America-first” strategies, such as tariffs, is currently unknown. However, it is evident that technology will continue to be a major focus in their policies. Trump recognizes the significance of the tech industry and artificial intelligence in maintaining American dominance on the international platform.
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