New Administration Revokes 2023 Executive Order on AI

by Zachary Barlow

January 22, 2025

The federal regulatory perspective on AI is shifting as the new administration has nullified the 2023 Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. The previous Order created eight principles and priorities for the development of AI and its revocation signals that the new administration may be taking a more “hands-off” approach to AI regulation. While this may reduce the possibility of regulatory risk at the federal level, it also increases uncertainty surrounding AI development. A recent memo from Foley & Lardner provides tips on how to manage this uncertainty advising companies to:

  • Strengthen Internal Governance: Develop or enhance internal AI policies and ethical guidelines to promote responsible and legally compliant AI use, even in the absence of federal mandates.
  • Invest in Compliance: Stay updated on state, international, and industry-specific AI regulations that could impact operations. Proactively align practices with emerging standards such as Colorado’s Artificial Intelligence Act and the EU’s AI Act.
  • Monitor Federal Developments: Keep a close eye on further announcements or legislative actions from Congress and federal agencies that could signal new directions in AI policy and regulation.
  • Engage in Industry Collaboration: Collaborate with industry groups and standards organizations to help influence voluntary AI standards and best practices.
  • Focus on Risk Management: Establish strong risk assessment frameworks to identify and address potential AI-related risks, including biases, cybersecurity threats, legal compliance, and liability concerns.

While the federal strategy for AI regulation may take a more passive approach, state regulation shows no signs of slowing down. However, without federal policy setting the standard we may be looking at a patchwork of AI regulations emerging in the US. Knowing the law in every jurisdiction where your company operates is paramount to meeting your compliance obligations.