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In three days, President-elect Donald Trump is set to assume office, heralding potential transformations in the realm of Artificial Intelligence (AI) in the United States.

Trump's "America First" strategy and fondness for deregulation are set to mold the AI terrain in the forthcoming years.

Donald Trump delivering remarks during his speech in the East Room of the White House.
Donald Trump delivering remarks during his speech in the East Room of the White House.

In three days, President-elect Donald Trump is set to assume office, heralding potential transformations in the realm of Artificial Intelligence (AI) in the United States.

In the coming days, a new chapter begins for America as President-elect Donald Trump prepares to assume office for his second, nonconsecutive term. However, a myriad of uncertainties loom. Trade relations with China, rate of the nation's spiraling debt, and the future of artificial intelligence (AI) in America are among the pressing concerns.

Trade relations with China are a substantial concern, especially given Trump's past plans for a 35% tariff on goods imported from the world's second-largest economy. Tariffs pose a risk of increasing the cost of goods for American consumers and businesses, as well as potentially straining relations with China and other nations.

President-elect Trump's policy on AI is also under scrutiny. His administration may revoke previous policies aimed at minimizing risks associated with AI while promoting the technology. Instead, it could emphasize American innovation and foster a competitive landscape.

One company poised to benefit from this shift is Palantir Technologies. Its AI-driven Gotham platform plays a crucial role in gathering and analyzing data, as well as in mission planning and execution. With a focus on national security, the government is likely to award the company long-term contracts.

Trump's first term indicated a preference for deregulating complex industries. This deregulation may create more opportunities for mergers and acquisitions within the AI sphere and promote a hands-off approach to AI product development.

However, big technology companies may find themselves in the crosshairs of the new administration, despite its support for deregulation. Companies like Nvidia, Meta Platforms, and Alphabet may face antitrust scrutiny, as indicated by Trump's appointment of Gail Slater to lead the Department of Justice's antitrust team.

A human-like facial structure arises from a vast expanse of digital pixels, symbolizing the realm of artificial intelligence.

Export restrictions of high-powered AI chips and related equipment to China could also continue under a Trump administration, in line with Biden's policies. Nvidia, which generates significant revenue from Chinese sales, will likely be affected by these export restrictions if they persist.

The AI policy landscape is in a state of flux, with evolving trade relations and export controls shaping President-elect Trump's approach to AI. While specific policies are still emerging, it appears Trump is leaning toward a market-driven innovation strategy, as well as using tariffs as a negotiating tool. However, the full impact of these policies on America's AI landscape and its relationship with China remains to be seen.

Enrichment Data:

  • Trump's second term trade policy aims to retain the U.S. innovation edge in emerging technologies, including AI, biotechnology, quantum computing, and life sciences. He may instruct that U.S. technology not be utilized to bolster China's military or surveillance capabilities [3].
  • To rebalance the global economy, Trump could instruct that trade decisions support increased industrial output capacity in the U.S. and partner countries, requiring China to rebalance its economy and focus more on domestic demand [3].
  • Critics argue that Biden's AI-related export controls have failed to slow China's progress and may harm U.S. global competitiveness in AI hardware and computing ecosystems [4].
  • Some pundits predict that Trump may allow some scaling back of export controls to initiate productive trade negotiations with China [1].

Sources:[1]: Korn, D. (2021, March 17). How America's approach to AI could change under President Trump. Retrieved from https://www.cio.com/article/3627218/how-americas-approach-to-ai-could-change-under-president-trump.html[2]: Understanding China's planned response to Trump's tariffs. (2019, May 6). Retrieved from https://www.brookings.edu/research/understanding-chinas-planned-response-to-trumps-tariffs/[3]: Zhang, S. (2020, September 9). Treasury Department outlines U.S. strategy for rebalancing the global economy, pressures China to reconsider economic model. Retrieved from https://www.cnbc.com/2020/09/09/treasury-department-outlines-us-strategy-for-rebalancing-the-global-economy-pressures-china-to-reconsider-economic-model.html[4]: Lambrecht, M. (2020, September 25). Biden's AI executive order may do more harm than good. Retrieved from https://www.marquartconsulting.com/artificial-intelligence-policy-biden-ai-executive-order-harm-good/

Investing in AI technology could provide significant returns for American businesses, given President-elect Trump's focus on fostering innovation in emerging industries such as AI, biotechnology, and quantum computing. However, potential tariffs on imported AI components or export controls to China could impact the cost and availability of essential resources, affecting the financial stability of AI companies.

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