What a Trump Presidency Could Mean for AI | Global News Avenue

Tech stocks, like much of the U.S. stock market, have risen this week on expectations of business-friendly tax policies and softer regulations since Donald Trump was re-elected to the White House.

Roundhill Magnificant Seven ETF (MAGS) – Track stocks Artificial Intelligence (AI) Heavyweight NVIDIA (NVDA), apple(AAPL),Microsoft(Microsoft Corporation), alphabet (Google), Amazon (Amazon), meta platform (Mehta) and Tesla (Tesla) — up nearly 7% since Election Day. Tesla’s stock price rose more than 25% last week, which had a huge impact on these gains. Still, most stocks have outperformed, with the equally weighted S&P 500 up less than 3% over the same period.

The last time Donald Trump was president, artificial intelligence was barely a blip on Wall Street’s radar. His incoming administration could have long-term consequences for how emerging technologies are developed and who benefits from them.

What did Trump say about artificial intelligence?

At Trump’s campaign rallies, AI got little air time. Trump has said little about whether he will encourage investment in artificial intelligence, regulate the emerging technology or promote its use in government.

His official platform states: “We will repeal Joe Biden’s dangerous executive orders that hinder artificial intelligence innovation and impose radical left-wing ideas on the development of this technology. Instead, Republicans support the Artificial intelligence development for free speech and human flourishing.”

Biden’s October 2023 executive order on artificial intelligence sets out guiding principles for his administration’s AI initiatives, one of which is that they “must be consistent with my administration’s commitment to promoting equity and civil rights.”

The order also creates the American Artificial Intelligence Safety Institute, an organization designed to assess the safety of advanced artificial intelligence models. Last month, dozens of tech companies urged congressional leaders to enact legislation to formally establish and fund the institute by the end of the year.

What Trump supporters think about artificial intelligence

Trump won the White House with the support of several prominent technology investors. These include venture capitalist Marc Andreessen, who in December 2023 called AI regulation “the basis of a new totalitarianism.” In his “Techno-Optimist Manifesto” published in October 2023, Anderson identified “trust and security” and “tech ethics” as two aspects of a “massive demoralization campaign” that he said could stifle economic growth and lead to social decline.

But closer to Trump is Elon MuskHe has taken a more cautious stance on AI regulation. He supports a California bill that, if not vetoed by Gov. Gavin Newsom, would require large language model Get tested for security.

Can Trump lead an artificial intelligence boom?

Whether Trump prioritizes innovation or security, his administration is widely expected to encourage investment as part of its pro-growth agenda.

The Biden administration appears to have a constructive relationship with industries engaged in regulating artificial intelligence, but Big Tech may have a warmer relationship and greater influence with the Trump administration.

Wedbush analysts expect the Trump administration to launch “significant AI initiatives” within the government and military. Washington’s investment in artificial intelligence could benefit cloud computing giants Microsoft, Alphabet’s Google and Amazon, as well as defense contractor Palantir.PLTR), they wrote.

Palo Alto Networks (Pan Wei) Chief Executive Officer (CEO) Nikesh Arora tells CNBC Shortly after the election, it is “very likely” that the Trump administration will accelerate investments in artificial intelligence.