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Despite US Retreat, AI Compliance Remains a Major Business Priority

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James Morales
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Key Takeaways

  • Donald Trump recently repealed Joe Biden’s Executive Order on responsible AI development.
  • The move suggests Trump will pursue deregulation of the AI sector.
  • However, regulatory compliance remains a top priority for global businesses.

Donald Trump’s recent move to revoke a Biden-era Executive Order on AI safety signaled a hands-off approach that could define Washington’s AI policy for the next four years.

However, when it comes to AI, the new administration’s deregulatory agenda runs against the global current. And for international businesses, compliance with a growing body of legislation remains a top priority.

Regulatory Fragmentation

As with any new regulatory frontier, different jurisdictions have inevitably taken different approaches to AI risk.

In 2024, the EU took a leading role when it passed the AI Act, laying out an expectation of responsible AI development and risk mitigation.

A key pillar of the EU Act is the notion of “high-risk” AI systems that require additional oversight and safeguards to prevent harm. This basic idea can also be observed in new legislation in South Korea and Mexico, which have both passed laws that classify AI systems based on their risk or impact.

To meet these requirements, businesses are developing new risk management and compliance monitoring tools.

For example, IBM and e& recently announced  an “AI governance platform” that will help the Emirati telecommunications firm navigate an increasingly fragmented regulatory landscape.

The Business Response: Proactive Measures for Compliance

Global businesses are not waiting for a single, unified regulatory standard. Instead, many are proactively investing in compliance tools and frameworks to future-proof their operations.

Research has found that 77% of companies view AI compliance as a top priority. Meanwhile, 69% have already adopted measures to comply with emerging AI regulations.

For companies like EY, the EU’s AI Act sets the bar for compliance. The firm has invested  $1.4 billion to ensure its business practices conform to EU standards for transparency and risk assessment.

No AI Wild West Under Trump

Trump’s move to repeal Biden’s Executive Order could be read as a sign that his administration intends to leave the sector largely unregulated. However, a closer examination of the evidence paints a more nuanced picture.

For instance, the Heritage Foundation’s influential policy document, Project 2025 , advocates for reducing the regulatory burden on AI development but calls for strengthening export controls to “safeguard AI innovations and prevent misuse by foreign adversaries.”

On that front, the Biden administration had already implemented policies designed to limit China’s access to the most advanced AI technologies.

These sanctions are likely to be maintained or even intensified under Trump. However, companies like Nvidia have criticized them for unnecessarily restricting trade.

Ultimately, whether driven by the EU’s AI Act, American national security interests, or other legal-political agendas, the push for responsible AI practices is unlikely to wane.

For companies looking to expand and optimize their use of AI, prioritizing transparency, minimizing risk, and maintaining a high standard of reporting are common sense long-term strategies, regardless of short-term political change.

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James Morales

Although his background is in crypto and FinTech news, these days, James likes to roam across CCN’s editorial breadth, focusing mostly on digital technology. Having always been fascinated by the latest innovations, he uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
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