As artificial intelligence (AI) reshapes industries and societies, the United States and the European Union are increasingly at odds over how to regulate it.

The rapid rise of AI enables computers to perform tasks that once depended on human intelligence autonomously. This opens up vast opportunities from personalized medicine to addressing global challenges, such as climate change. But it also poses significant risks, from job displacement to biased technologies to potential abuse in areas such as surveillance.

While the EU is rolling out a comprehensive AI rulebook to ensure user safety and accountability, the US under President Donald Trump is moving in the opposite direction, loosening restrictions and empowering tech industry figures to influence policy.

"In the US, we're seeing a clear shift away from emphasizing user safety," said Lisa Soder, a senior policy researcher at the information technology think tank Interface in Berlin.

She told DW that Trump is increasingly changing the country's approach to AI regulation to prioritize national security and industry interests. 'America-first AI is just very big right now." 

The influence of Big Tech 

From his first day in office, it became clear just how much influence Trump and his new administration are willing to give the industry over how AI is regulated.

Tech billionaires attended his inauguration as the 47th president, including Tesla and SpaceX CEO Elon Musk, OpenAI CEO Sam Altman, and Meta CEO Mark Zuckerberg, who were prominently seated in the second row directly behind Trump's family.

That same day, Trump rescinded an executive order issued by his predecessor, Joe Biden, dismantling several AI protections and initiatives implemented during Biden's administration.

In the following days, Trump invited Altman and the CEOs of tech companies SoftBank and Oracle to the White House to announce what he described as "by far the largest AI infrastructure project in history." Over the next four years, the megaproject, dubbed Stargate, will invest up to $500 billion in AI infrastructure, including data centers.

"It's all taking place here in America," Trump told reporters.

He also signed an executive order to develop an "AI Action Plan" within 180 days. The plan aims "to sustain and enhance America’s dominance in AI."

While the details of this policy remain unclear, it is widely expected to give tech giants significant freedom to develop new AI technology. The policy is also likely to reduce requirements for companies to mitigate risks as they develop everyday applications.

Will the EU remain true to its 'safety first' approach?

This hands-off approach to AI regulation starkly contrasts with the regulatory environment on the other side of the Atlantic.

The EU's landmark Artificial Intelligence Act became law last summer. Its goal is to protect EU citizens from the potential harms of AI without stifling innovation. To achieve this balancing act, the AI Act imposes a range of rules and requirements on AI systems, from minimal to high, depending on the risk they pose to users' fundamental rights.

However, while proponents of strict rules applaud the EU for this approach, calling it necessary to protect users, critics say it will put European companies at a disadvantage over their competitors overseas. 

At the same time, as authorities in Brussels and member states set up offices and staff teams to enforce the rules, a debate is unfolding over how regulators will interpret the new laws.

"In the EU, we're also seeing a shift in sentiment and a lot of uncertainty about what's really feasible and how ambitious the EU can be with its rules — for example, what kind of information they can require from companies," Soder said. 

The global race for AI

Experts expect Trump's presidency to have a lasting impact on the global race for AI: the international competition among nations and companies to develop and deploy cutting-edge AI technology that will give them economic, military, and strategic advantages. 

So far, the United States is the clear frontrunner, dominating both AI research and investment as the home of tech giants such as Google, Meta, Apple, and OpenAI. But China and its companies, ranked second in AI development, have been making rapid progress.

In recent years, efforts to develop internationally binding rules and guardrails for AI technology have been largely unsuccessful. Now, with Trump in the White House, they seem less likely than ever.  

Even the voluntary commitments to the safe development and use of AI that many major tech companies have made in the past now seem up in the air, Soder said. When many CEOs meet with world leaders in Paris on February 10 and 11 for the Artificial Intelligence (AI) Action Summit hosted by the French government, she added that it will be interesting to see how much they stick to them.

"In the past, companies have promised to do a lot of work in the name of safety and trustworthiness," she said. "Now that the geopolitical situation has changed, this summit will be a critical test to see if they will continue to do that."

Edited by: Kyra Levine