Why Trump's AI policy has divided his own advisers
What's the story
The White House is embroiled in an internal struggle over artificial intelligence (AI) regulation. The conflict intensified after President Donald Trump scrapped a proposed executive order that would have subjected AI models to an extended government review. The move, influenced by White House AI adviser David Sacks, left senior administration officials like Scott Bessent and Susie Wiles surprised and unhappy.
National risk
Bessent's concerns over AI-driven cyberattacks
Bessent, the Treasury Secretary, expressed fears that AI-driven cyberattacks could disrupt the country's banking system.
A White House team had spent months negotiating to increase oversight of AI and consulted various industry executives on the order.
However, Trump signed a pared-down version of the order at Wiles and Bessent's urging.
Ongoing debates
Ongoing discussions on potential guardrails
Since the dispute, Wiles, Bessent, and other officials have been meeting almost daily to discuss risks in the sector and consider potential guardrails.
They are trying to persuade Trump to take a more hands-on approach.
The divide among Trump's AI advisers continued, with some pushing for more government scrutiny while others advocating for a light-touch approach.
Influence questioned
Sacks's controversial stance on government involvement in AI
Sacks, who previously served as the administration's AI and crypto czar, has been a point of friction for some White House officials.
He advocated for limited government involvement in AI. Some administration officials privately investigated Sacks's businesses to see if he could personally profit by blocking regulations.
Stance
Trump's position on AI development and data centers
Despite concerns from his top advisers and much of the public, Trump has remained adamant that the nation needs to accelerate AI development.
He defended data centers despite polls showing most Americans oppose them in their communities.
Sacks said existing product-liability laws and measures preventing fraud are largely sufficient regulations for AI models at this time.
Mixed signals
Industry executives push for standards amid policy confusion
Some industry executives worked to persuade Trump to scuttle another potential order.
Demis Hassabis, chief scientist of Google parent Alphabet, pitched White House officials on an industry-funded group that would set standards and prevent harm.
However, the start-and-stop policy efforts have left industry executives confused about AI policy direction nearly two years into Trump's second term.