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♨️ Fresh From Oven ♨️
Trump Scraps Biden’s Sweeping AI Order in Regulatory Reset
(Bloomberg) -- President Donald Trump rescinded the Biden administration’s sweeping executive order regulating artificial intelligence, marking a significant shift in federal oversight for the rapidly advancing technology.
The move, announced on Monday, immediately halts the implementation of key safety and transparency requirements for AI developers. Biden’s mandate, which was signed in 2023, had required leading artificial intelligence companies to share safety test results and other critical information for powerful AI systems with the federal government. It also prompted the creation of the US AI Safety Institute, housed under the Commerce Department, to create voluntary guidelines and best practices for the technology’s use.
Trump didn’t immediately say exactly what would replace the order, but the administration is likely to take a more hands-off approach. Before returning to the White House, Trump had criticized Biden’s AI regulations as heavy-handed and hindering tech innovation. Trump also appointed David Sacks, a venture capitalist and longtime critic of tech regulation, as his crypto-AI czar.
With the repeal, Trump has thrown the future of US AI policy into question at a time when other countries are jockeying to set rules of the road for the disruptive technology. Last year, the European Union passed the AI Act, perhaps the most comprehensive guardrails for AI to date. The rules ban facial recognition and require strict oversight for “high-risk” AI used in sectors like healthcare and law enforcement, among other efforts.
To recap:
The Executive Order is guided by eight principles and priorities:
1. AI must be safe and secure by requiring robust, reliable, repeatable and standardized evaluations of AI systems, as well as policies, institutions, and, as appropriate, mechanisms to test, understand, and mitigate risks from these systems before they are put to use.
2. The US should promote responsible innovation, competition and collaboration via investments in education, training, R&D and capacity while addressing intellectual property rights questions and stopping unlawful collusion and monopoly over key assets and technologies.
3. The responsible development and use of AI require a commitment to supporting American workers though education and job training and understanding the impact of AI on the labor force and workers’ rights.
4. AI policies must be consistent with the advancement of equity and civil rights.
5. The interests of Americans who increasingly use, interact with, or purchase AI and AI-enabled products in their daily lives must be protected.
6. Americans’ privacy and civil liberties must be protected by ensuring that the collection, use and retention of data is lawful, secure and promotes privacy.
7. It is important to manage the risks from the federal government’s own use of AI and increase its internal capacity to regulate, govern and support responsible use of AI to deliver better results for Americans.
8. The federal government should lead the way to global societal, economic and technological progress including by engaging with international partners to develop a framework to manage AI risks, unlock AI’s potential for good and promote a common approach to shared challenges.
To clarify, this is not the framework of Interim Final Rule on AI Diffusion
🧠 Our thoughts 🧠
👀 are on the directive of the disruptive Interim Final Rule on AI Diffusion under Trump's administration now - which crushed MY market past 1 week.
To recap, following the release of this framework, sharp correction were seen across BM Construction Index (-10%), followed by BM Property (-4%) and BM Utilities (-2%) indexes.
While the framework casts uncertainties on Malaysia’s AI/DC growth narrative (given its Tier-2 categorisation, it is likely to be subjected to export caps and licensing requirements), we still keeping our view that the impact is confined only to selective companies with most data centre (DC) exposure, particularly those to AI GPU servers
And this, will be the game changer if it happens - with the framework’s 120-day comment period which provides room for reassessment, we see a plausible scenario where the widely condemned framework could be recalibrated given Trump’s pro-business policies.
So if this materialises whether the framework is being rescinded or recalibrated (our baseline hope), lists as below could see its fortune flipped to the Lady Fortuna 💃🏻
$NATGATE / 0270 (NATIONGATE HOLDINGS BERHAD)
$IJM / 3336 (IJM CORPORATION BERHAD)
$SUNCON / 5263 (SUNWAY CONSTRUCTION GROUP BERHAD)
