For the last few years, the talk in US AI policy has been dominated by the word "guardrails." But a quiet, decisive pivot has happened: the core objective of current US policy is now to eliminate federal policies perceived as impediments to innovation. Getting out of the way has become the new policy.
This pivot is encapsulated in Executive Order 14179, which revoked the previous, more regulation-focused order. The goal is clear: prioritize US dominance in AI technologies above almost all else.
Two Pillars: Dominance and Security
The current US AI strategy rests primarily on two pillars:
- Technological Dominance: Directing agencies to enhance US leadership in AI, which is directly addressed by initiatives like the Genesis Mission (the "Manhattan Project for AI Science"). This means integrating federal datasets and supercomputers into a unified AI experimentation system to accelerate research and maintain a "strategic edge".
- National Security: The policy explicitly prioritizes national security, pushing for the weaponization of AI in geopolitical competition and strengthening deterrents.
The message to the US tech industry is essentially: Innovate fast, and we will back you with federal compute and defense contracts.
The Problem of Fragmentation
While the federal government pushes a unified, pro-innovation strategy, the actual regulatory landscape is a mess. The US is likely to continue with a fragmented, state-by-state approach to AI laws.
This fragmented approach has a massive trade-off: it allows for more flexibility for innovation, but it creates inconsistencies that only large companies (like Google, Microsoft, and OpenAI) can navigate easily. The smaller AI labs and open-source projects, which are supposed to benefit from "less regulation," still face a compliance headache across 50 state legislatures.
Furthermore, by not creating strong, federal-level policies on issues like algorithmic accountability or liability, the US risks becoming a rule-taker on the global stage. Other blocs like the EU and even the G20 are moving forward to set global norms based on human rights and ethical guidelines, leaving the US to rely on market dominance to shape norms later.
The Human Element
The lack of comprehensive federal guidance on privacy and civil liberties is a major concern. The new order does not create new privacy standards. We’ve already seen the massive human cost of unregulated technology, from biased facial recognition systems to the use of private data for model training.
A founder I spoke with said that the current approach is "the Wild West of technology" where powerful tools are released with no accountability. While the government is focused on what AI can do for the country's power, it’s neglecting what AI can do to the country’s citizens.
My Take
I understand the desire for US technological dominance; no one wants to lose the AI race. But the pivot to simply get out of the way is shortsighted. The greatest threat to US AI dominance won't be from another country's model; it will be from a lack of trust and safety in our own systems.
The focus should be on building a unified framework that enables innovation while simultaneously enforcing core principles of safety, security, and accountability. By letting the regulatory environment fragment and allowing commercial interests to run ahead of ethical standards, we risk building a powerful technological advantage on an unstable foundation of public mistrust. That's not a policy for dominance; it's a policy for fragility.