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Trump’s AI and AV Deregulation Push: Innovation or Risky Race?

Trump’s AI and AV Deregulation Push: Innovation or Risky Race?

Posted on August 3, 2025 By rehan.rafique No Comments on Trump’s AI and AV Deregulation Push: Innovation or Risky Race?

America is entering a new technological era—and it’s not creeping in quietly. It’s roaring onto the scene with President Donald Trump behind the wheel, steering the nation toward a future driven by artificial intelligence and autonomous vehicles.

His aggressive deregulation strategy promises to reshape everything from how we commute to how we innovate. Some call it a long-overdue acceleration of American ingenuity. Others see it as a dangerous race without brakes.

On Jan. 23, 2025, Trump signed Executive Order 14179, titled Removing Barriers to American Leadership in Artificial Intelligence—a direct rebuke to President Joe Biden’s more cautious 2023 framework, which emphasized risk, fairness, and guardrails. Trump’s message: The time for hesitation is over. If the United States wants to lead in AI and AVs, it can’t afford to be second-guessed by bureaucrats or slowed by overregulation.

The question now: Will this bold move usher in a new golden age of innovation—or create a technological free-for-all with unforeseen consequences?

At the core of Trump’s strategy is a belief in private-sector innovation. He’s betting that removing government red tape will ignite breakthroughs in transportation, medicine, logistics, and national security.

Trump’s executive order directed all federal agencies to identify and eliminate regulations hindering AI development. Following the order, the Office of Management and Budget released two key memos (M-25-21 and M-25-22), which restructured how agencies adopt AI. The memos encourage rapid implementation, require prioritization of U.S.-made technology, and instruct agencies to avoid “ideological bias” in AI design and outcomes. Under this directive, government AI officers are expected to enable innovation—not enforce compliance.

The Department of Transportation is overhauling how autonomous vehicles are approved for public use. The National Highway Traffic Safety Administration’s (NHTSA) exemption process is being revised to allow AV deployment without traditional safety hardware like steering wheels or pedals. Previously capped at 2,500 units per year, deployment limits may rise significantly. This marks a major win for companies like Tesla, Waymo, Cruise, and Zoox, many of which already operate AV pilot programs in U.S. cities.

A new initiative, the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, is pushing for even higher AV deployment caps to fast-track integration into everyday life.

Trump’s strategy is not just domestic—it’s a calculated move in the global tech arms race. By loosening restrictions, the U.S. aims to maintain dominance over international competitors like China’s DeepSeek, which is rapidly advancing low-cost AI. The administration is also tightening export controls on high-performance AI chips and investing heavily in homegrown infrastructure. The $500 billion Stargate Project—a public-private partnership between OpenAI, Oracle, and SoftBank—will build massive data centers to cement U.S. leadership in AI.

There are clear upsides. AI and AVs can address real-world problems: improving healthcare, modernizing education, streamlining manufacturing, and reducing road fatalities.

According to the NHTSA, 94% of traffic accidents are caused by human error. Removing the driver from the equation could save thousands of lives annually. AVs also promise reduced congestion and faster commutes through optimized traffic routing. A 2021 study by the American Trucking Associations estimated autonomous trucks could save the logistics industry $85 billion per year.

Waymo already provides more than 150,000 driverless rides per week—a number expected to grow rapidly. With looser federal oversight, expect a boom in robotaxis, autonomous delivery vehicles, and self-driving long-haul trucks. For consumers, AVs could slash ride-hailing costs by 30 to 50 percent, boosting access and mobility.

But progress without prudence can lead to chaos—and tragedy.

Critics argue Trump’s approach moves too far, too fast. The NHTSA’s proposed elimination of crash data reporting for AVs has alarmed safety advocates, including the Center for Auto Safety. Without transparency, they warn, failures could remain hidden until a disaster demands public scrutiny—like the 2023 Cruise incident in San Francisco, where a robotaxi dragged a pedestrian 20 feet before stopping.

Rolling back Biden-era AI guidelines also removes safeguards against algorithmic bias, privacy violations, and misuse. Without guardrails, AI could make flawed decisions in hiring, lending, or policing. The administration’s emphasis on removing “ideological bias” may resonate with critics of so-called “woke tech,” but it could also weaken equity protections.

States like California and Colorado are passing their own AV and AI regulations, creating a patchwork of rules. For example, California’s 2024 AI Transparency Act conflicts with federal efforts, potentially triggering legal battles that could slow national innovation.

Before discussing fully autonomous roads, it’s important to clarify the levels of automation defined by the Society of Automotive Engineers (SAE):

  • Level 0: No automation. The vehicle may issue warnings but does not take action.
  • Level 1: Driver assistance. Either steering or braking is automated, but not both.
  • Level 2: Partial automation. The car can steer and control speed, but the driver must remain alert and ready to intervene.
  • Level 3: Conditional automation. The car drives itself in limited scenarios but may require the driver to resume control.
  • Level 4: High automation. No driver needed, but only within defined geofenced areas. Waymo and Zoox are already testing Level 4 robotaxis.
  • Level 5: Full automation. The vehicle operates in all conditions, on any road, without a human driver. No company has achieved this yet.

Later this year, the Trump administration plans to release a National AI Action Plan based on public feedback. Meanwhile, automakers are pressing the DOT for expanded AV testing and deployment—a move the White House is expected to support.

Whether you support or oppose Trump’s tech policies, these decisions are poised to affect how you live, work, and travel. Your next taxi may not have a driver. Your doctor might rely on AI. Your children could grow up in a world where driving is optional.

But the real question isn’t whether this revolution is coming—it’s how we shape it. Should safety oversight be strengthened, or should the market decide? Should innovation be slowed to avoid mistakes, or accelerated to stay ahead of China?

You—the American voter and consumer—will help decide. Stay informed. Stay engaged. This isn’t just about technology; it’s about how much control we give to machines—and how much we want to keep for ourselves.


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Lauren Fix is an automotive expert and journalist covering industry trends and policy changes. Follow her on X @LaurenFix for the latest news and analysis.

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