Introduction

Donald Trump will be back in the White House in 2025, bringing with him possibly a more business-friendly approach to new digital technology sectors like AI and crypto. His ally Elon Musk has repeatedly warned against AI overreach which could end mankind, but will Trump heed these warnings and suppress AI? Or follow the ideology that deregulation leads to economic growth? Only time will tell. 

Trump is pro-business, and that provides good negotiating ground with AI giants like OpenAI, Google, and Microsoft as they try to find the right regulatory frameworks to contain the exponentially evolving machine-learning sector. 

Trump’s victory in the 2024 presidential election is sure to have significant implications for the development and regulation of artificial intelligence (AI) and cryptocurrency-related AI projects. While this could enhance the competitive position of U.S. tech firms, it also raises significant concerns about ethical standards, international cooperation, and the trajectory of technological growth. 

The implications of these changes will be felt globally, as nations navigate the complexities of AI governance – and AI competition – in an increasingly interconnected world.

Here’s an analysis of the biggest potential impacts on AI that we might see in 2025:

The Ideology of Deregulation 

Trump has indicated plans to repeal the Biden administration’s executive order on AI, which aimed to implement stricter regulations and oversight on AI technologies. His policy is to promote a less regulated environment, allowing companies greater freedom to develop and deploy AI technologies without governmental oversight. 

The tech industry, particularly AI companies and startups, may welcome this less restrictive environment. It could potentially accelerate the development and deployment of AI technologies without the constraints of extensive governmental oversight. This approach might foster rapid innovation and allow U.S. companies to maintain a competitive edge in the global AI race.

Trump’s approach is likely to be welcomed by major tech companies that advocate for a lighter regulatory touch. Many in the industry argue that stringent regulations can stifle innovation and their competitiveness. However, companies can’t be relied on to self-regulate: they will surely prioritize profit over ethical considerations.

This is part of Trump’s broad economic agenda to reduce regulations on all businesses – not just digital. It could potentially lead to rapid advancements in AI capabilities – or to rapid AI catastrophe!

Potential Risks of Deregulation

The deregulatory approach raises concerns about safety, ethics, and accountability in AI development. Experts warn that without adequate regulatory frameworks, the risks associated with AI – such as bias, misinformation, and privacy violations – could escalate. The lack of robust oversight may hinder efforts to establish ethical standards and best practices in AI development, which are crucial for addressing the technology’s societal impacts.

Advocates of deregulation say it will spur innovation, however nothing but regulation can establish the ethical standards and best practices needed to address AI’s societal impacts.

Influence over Global Standards

Trump’s deregulatory policies – and his poor reputation internationally – do not bode well for the country’s ability to influence international norms and regulations governing AI. Historically, the USA shaped global AI standards, simply because it is home to the leading tech firms and research institutions: Google, Microsoft, MIT, etc. Trump’s deregulatory policies could diminish the USA’s ability to influence international norms and regulations governing AI. As countries like China continue to advance their AI capabilities, a weak regulatory landscape in the USA might hinder its competitive edge.

Geopolitical Tensions

Trump’s administration has signalled its intention to continue and expand Biden’s protectionist measures. The USA could attempt tighter export controls on AI technologies, particularly to China. Such actions could create barriers to global cooperation in AI development and governance, exacerbating geopolitical tensions, and limiting the USA’s ability to lead global discussions on responsible AI use.

Cryptocurrency and AI Projects

Trump’s election victory is seen as potentially beneficial for cryptocurrency-related AI projects. His administration is likely to foster an environment that encourages innovation and investment in blockchain technologies and digital currencies. This could be advantageous for startups looking to develop new crypto solutions without heavy regulatory scrutiny.

The cryptocurrency market has already shown a positive response to Trump’s victory, with Bitcoin reaching an all-time high. This surge reflects the market’s anticipation of a more crypto-friendly regulatory environment under Trump’s leadership.

However, the lack of regulation could also lead to increased volatility in the cryptocurrency markets. A deregulated environment may attract speculative investments, but could also expose investors to higher risks associated with fraud and market manipulation.

Uncertainty for Innovators

The anticipated changes in regulation could introduce uncertainty for businesses involved in AI development. Companies might face challenges maintaining compliance with rapidly shifting regulations, and this could impact investment decisions and strategic planning. The lack of clear guidelines may deter some innovators from pursuing ambitious projects due to fears of potential backlash or future regulatory changes.

National Security and Defense AI

In the realm of defense and national security, Trump’s administration might pursue a less stringent regulatory environment for AI development related to military technologies. This could lead to closer relationships between the government and private organizations involved in developing defense-related AI. However, this approach might also diminish prospects for international cooperation on defense-related AI governance, potentially exacerbating global tensions in military technology development.

Economic Impact

Trump’s policies are expected to prioritize private sector gains in AI development. This approach might help companies move fast without adequate safeguards! While this could spur economic growth and innovation in the short term, it raises concerns about long-term consequences regarding consumer safety and privacy – as well as catastrophic AI risk.

Workforce and Education

The rapid advancement of AI under a deregulated environment could have significant implications for the workforce. It might create new job opportunities in the tech sector, but accelerate job displacement in other industries. Trump’s administration will need to address these challenges, potentially through workforce retraining programs and education initiatives focused on AI and related technologies.

Global Competitiveness

Trump’s approach aims to keep the USA ahead of other regions, particularly Europe and China, in AI development. The administration hopes that reducing regulatory barriers will spur domestic innovation and give the country a competitive edge over more regulated countries. However, this strategy also risks widening the gap between the USA and other nations in terms of AI governance and ethical standards.

Conclusion

Donald Trump’s victory signals a significant shift in the U.S. approach to AI and crypto-related AI projects. The anticipated deregulation is likely to spur rapid innovation and investment in these sectors. However, this may come at the cost of safety, ethics, and long-term societal impacts.

The success of this approach will depend on how well the administration can balance the drive for innovation with necessary safeguards. It will also require careful navigation of international relations, particularly in managing technology transfers and global AI governance.

As the AI landscape mutates under Trump’s leadership, the tech industry, policymakers, and the public will need to remain vigilant. They must work to ensure that the benefits of AI advancement are realized, while mitigating potential risks and ethical concerns. The coming years will be crucial in shaping the future of AI and its impact on society, both in the USA and globally.

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