Trump Scraps Planned AI Executive Order Over Competitiveness Fears

President Trump canceled a scheduled executive order on artificial intelligence. The decision rested on concerns that new rules could slow American companies relative to foreign competitors.

The order had been expected to address safety testing, data standards, and federal procurement practices. White House officials said the draft language risked adding compliance costs without clear benefits to national security or innovation speed. No replacement timeline was announced.

Industry groups had pressed for narrower scope. Several executives argued that broad mandates on model evaluation would favor larger labs already equipped to absorb the expense. Smaller developers warned the same requirements could raise barriers to entry.

No congressional leaders from either party issued immediate statements. Previous AI-related directives under the prior administration had drawn mixed reactions, with some provisions later revised after court challenges and agency feedback.

The absence of the order leaves federal agencies without new centralized instructions on AI risk assessments for at least the near term. Existing voluntary frameworks and sector-specific guidance remain in place.