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Trump's Proposed AI Executive Order: Implications for SMB AI Strategy
Cyrus Shirazian (Eslamian)
July 18, 2024
Trump's Proposed AI Executive Order: Implications for SMB AI Strategy
Flash Insight
Trump's drafted executive order on AI could significantly shift the regulatory landscape and military applications of AI, with major strategic implications for small and medium businesses.
Executive Brief
As the 2024 U.S. presidential election approaches, Donald Trump's allies are reportedly drafting an executive order that would dramatically reshape the country's approach to AI development and regulation. The proposed order includes provisions to establish "Manhattan Projects" for military AI applications, create industry-led agencies to evaluate AI models, and roll back current AI regulations put in place by the Biden administration.
For small and medium businesses (SMBs) investing in or utilizing AI technologies, this potential policy shift raises important strategic questions. How might reduced regulation impact the competitive landscape? What new opportunities or risks could arise from expanded government investment in military AI? SMBs must carefully consider the implications as they develop their own AI strategies.
Strategic Takeaways
SMBs could proactively assess their current AI initiatives and roadmaps in light of the potential policy changes signaled by Trump's draft executive order. Key considerations include:
Evaluating whether reduced AI regulation could create opportunities to accelerate development timelines or expand use cases. SMBs may be able to move faster with fewer constraints.
Identifying any proprietary AI models or datasets that could become vulnerable if "industry-led" evaluation agencies are established. SMBs could have plans in place to protect their intellectual property.
Exploring potential partnerships or contracting opportunities that may emerge from expanded government investment in military AI projects. SMBs with relevant capabilities could pursue new revenue streams.
Developing contingency plans for navigating a less predictable and potentially fragmented regulatory environment if comprehensive federal AI governance is rolled back.
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Impact Analysis
If implemented, the policies in Trump's proposed executive order could have significant impacts for SMBs engaged with AI:
Reduced regulation may lower certain compliance costs and approval barriers in the near-term, potentially enabling faster time-to-market for new AI applications.
However, a more complex patchwork of industry-specific governance could emerge, increasing long-term regulatory uncertainty and costs.
SMBs offering AI solutions to the U.S. government and military could see substantial new growth opportunities if "Manhattan Project" scale investments materialize.
But those same SMBs may face intensified competition from larger technology companies who are better positioned to win major government AI contracts.
The competitive landscape for commercial AI applications could shift unpredictably as governance frameworks evolve, necessitating more frequent pivots in SMB strategy.
Executive Reflection
As SMB leaders track the development of this potential executive order and other AI policy initiatives, they could reflect on the following questions:
How dependent are our AI roadmaps on the current regulatory status quo? Where are we most exposed if governance frameworks change?
What types of AI talent and capabilities could we cultivate now to remain competitive in a more dynamic policy environment?
Are we sufficiently engaged in relevant industry groups and policy discussions to have a voice in how AI governance takes shape?
How could we build more agility into our AI strategy and execution to adapt if the competitive landscape shifts quickly?
By proactively considering these issues, SMBs could position themselves to navigate the strategic challenges and opportunities that may arise from the evolving intersection of AI technology, business strategy, and public policy.