President Biden’s October 2023 executive order on the development and use of AI was among dozens of directives revoked by President Trump on the first day of his new term.
Trump’s approach to AI innovation seems to emphasize deregulation and the promotion of rapid development. During his previous term, the Trump administration launched the American AI Initiative through a February 2019 executive order. This initiative, outlined in a White House memo, identified five key priorities:
- increasing AI research investment,
- opening federal AI computing and data resources,
- establishing AI technical standards,
- building America’s AI workforce, and
- engaging with international allies.
According to Monday’s presidential action, rescinding Biden’s order aligns with efforts to “restore common sense to the federal government and unleash the potential of the American citizen.” President Biden’s executive order prioritized standards for the secure and responsible development of AI, safeguarding individual privacy and data security and preventing bias and discrimination in AI applications. It also aimed to promote a competitive AI development landscape and outlined potential regulations to protect workers and consumers.
David Sacks, a venture capitalist, has been appointed as the White House AI and crypto chief. A memo from Skadden, Arps, Slate, Meagher & Flom LLP suggests that Sacks’ venture capital background will bring a “pro-innovation, pro-startup approach to the AI sector.” On social media, Trump stated that Sacks would “safeguard free speech online” and steer the country away from “big tech bias and censorship.”
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How the executive order on AI affects HR
While Biden’s executive order did not impose immediate requirements on employers, it highlighted the administration’s priorities and the direction of future enforcement and rulemaking related to AI. HR leaders will have to wait for further indications from the new administration on how White House direction might impact employment-related use of AI.
However, the dissolution of Biden’s order does not eliminate existing requirements regarding fair labor practices regarding AI. Liability for violating current rules will continue to rest on business leaders, not technology vendors or the output of artificial intelligence—a condition unchanged under either president’s executive order.
As Keith Sondering, former Equal Employment Opportunity Commissioner—who has been nominated to serve as Deputy Labor Secretary in the new Trump administration—explained to HR Executive in 2024: “Responsible HR principles must be built into the use of any tech in the same way they are applied to other functions of the field.”
HR leaders should also consider that many regulations governing AI in employment practices originate from states, municipalities and other jurisdictions. “U.S. federal regulation of AI [under Trump] is likely to be lighter, but states may fill the void,” according to a briefing from Skadden, Arps, Slate, Meagher & Flom LLP.
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