As the Trump administration prepares to take office, significant changes to artificial intelligence regulation are anticipated, including the potential repeal of the executive order established by President Joe Biden. This order, which set government oversight and encouraged safety standards for AI model developers, faces criticism for possibly leading to a chaotic regulatory environment with a patchwork of state laws. Experts warn that without federal guidance, states may adopt inconsistent regulations, complicating compliance. The Biden administration had guaranteed budgets for AI initiatives until 2025, and it remains to be seen how the incoming administration will allocate these resources moving forward.
The Department of Homeland Security has introduced new guidelines aimed at ensuring the safe use of artificial intelligence in critical infrastructure sectors. The framework outlines voluntary responsibilities for various stakeholders, including cloud providers, AI developers, and public sector entities. The framework addresses AI-related risks such as attacks using AI and operational failures. It also encourages government agencies to protect individual rights while leveraging AI to enhance critical services. The future of these guidelines remains uncertain as the incoming administration may repeal the executive order under which they were developed.
The President-elect has appointed Brendan Carr as the new chairman of the Federal Communications Commission, a position he will assume without the usual Senate approval due to his prior tenure on the commission since 2017. Under Trump’s administration, the FCC will consist of two Democrats and three Republicans. His previous actions include voting to repeal net neutrality rules in 2017 and opposing their restoration in 2021.
Jen Easterly, the Director of the Cybersecurity and Infrastructure Security Agency, will depart her position on January 20, 2025, coinciding with President-elect’s inauguration. With her departure, concerns arise about the agency’s future under Trump’s administration, especially regarding cybersecurity funding amidst proposed budget cuts. Ohio Secretary of State Frank LaRose is reportedly being considered as her successor.
Dark Reading reporting how the President-elect’s administration is anticipated to lead to fewer cybersecurity regulations and a shift in the cyber threat landscape. Experts suggest that, while the emphasis on regulations may decrease, there will be a heightened focus on protecting critical infrastructure and potential business-friendly federal privacy legislation. Michael Bahar, co-lead of global cybersecurity at Eversheds Sutherland, predicts a deprioritization of cybersecurity enforcement at the federal level, except in areas intersecting with trade policy and national security. As geopolitical tensions rise, particularly with China and Iran, experts warn of significant cyber threats targeting U.S. infrastructure. Despite easing federal regulations, many companies are likely to maintain a strong focus on cybersecurity investments due to the increasing risks of cyberattacks.
Why do we care?
The potential repeal of Biden’s AI oversight executive order is pivotal. Without federal standards, businesses face a potential regulatory patchwork as states enact inconsistent rules. Businesses must prepare for regulatory fragmentation in AI and potential leadership vacuums in cybersecurity, taking proactive measures to mitigate risks. There’s certainly an opportunity to invest in internal governance and compliance frameworks to navigate potential regulatory fragmentation in AI and cybersecurity.