President Donald Trump signed an executive order Thursday aimed at blocking states from crafting their own regulations for artificial intelligence, saying the burgeoning industry is at risk of being stifled by a patchwork of onerous rules while in a battle with Chinese competitors for supremacy.
Members of Congress from both parties, as well as civil liberties and consumer rights groups, have pushed for more regulations on AI, saying there is not enough oversight for the powerful technology.
But Trump told reporters in the Oval Office that “there’s only going to be one winner” as nations race to dominate artificial intelligence, and China’s central government gives its companies a single place to go for government approvals.
“We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it’s impossible to do,” Trump said.
The executive order directs the Attorney General to create a new task force to challenge state laws, and directs the Commerce Department to draw up a list of problematic regulations.
It also threatens to restrict funding from a broadband deployment program and other grant programs to states with AI laws.
David Sacks, a venture capitalist with extensive AI investments who is leading Trump’s policies on cryptocurrency and artificial intelligence, said the Trump administration would only push back on “the most onerous examples of state regulation” but would not oppose “kid safety” measures.
What states have proposed
Four states — Colorado, California, Utah and Texas — have passed laws that set some rules for AI across the private sector, according to the International Association of Privacy Professionals.
Those laws include limiting the collection of certain personal information and requiring more transparency from companies.
The laws are in response to AI that already pervades everyday life. The technology helps make consequential decisions for Americans, including who gets a job interview, an apartment lease, a home loan and even certain medical care. But research has shown that it can make mistakes in those decisions, including by prioritizing a particular gender or race.
States’ more ambitious AI regulation proposals require private companies to provide transparency and assess the possible risks of discrimination from their AI programs.
Beyond those more sweeping rules, many states have regulated parts of AI: barring the use of deepfakes in elections and to create nonconsensual porn, for example, or putting rules in place around the government’s own use of AI.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
The Islamic State group and other militant organizations are experimenting with artificial intelligence as a tool to boost recruitment and refine their operations. National security experts say that just as businesses, governments and individuals have embraced AI, extremist groups also will look to harness the power of AI. That means aiming to improve their cyberattacks, breaking into sensitive networks and creating deepfakes that spread confusion and fear. Leaders in Washington have responded with calls to investigate how militant groups are using AI and seek ways to encourage tech companies to share more about how their products are being potentially misused.
Waymo's self-driving taxis have been in the spotlight for both negative and positive reasons. This week, the automated ride-hailing taxis went viral after a San Francisco woman gave birth inside a Waymo taxi while on her way to the hospital. A Waymo spokesperson on Wednesday confirmed the unusual delivery. It said the company's rider support team detected unusual activity inside the vehicle and alerted 911. The taxi arrived safely at the hospital before emergency services. Waymo's popularity is growing despite heightened scrutiny following an illegal U-turn and the death of a San Francisco cat. The company, owned by Alphabet, says it is proud to serve riders of all ages.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
