President-elect Donald Trump’s second term suggests a distinctive approach to technology marked by deregulation, a focus on U.S. competitiveness, and proactive industrial policies. This perspective is shaped by strategic appointments and significant private sector investments.
The selection of Andrew Ferguson as FTC chair indicates a shift in antitrust enforcement. Ferguson is expected to move away from structural separations of major tech firms. This approach aims to “preserve the scale advantages of major U.S. tech firms while addressing specific competitive harms,” as noted by Dev Nag, CEO of QueryPal. Similarly, the appointment of David Sacks as the AI and crypto czar reflects a belief that emerging technologies require specialized oversight from individuals deeply embedded in the venture ecosystem. This strategy suggests a regulatory environment that supports rapid innovation and commercialization.
The administration’s approach to AI is expected to involve rolling back safeguards implemented under previous administrations, replacing them with frameworks that emphasize rapid deployment and commercialization. This could accelerate the integration of AI systems across various sectors. However, Nag warns that “this acceleration comes with important governance considerations,” as reduced emphasis on AI safety frameworks could create technological vulnerabilities requiring future remediation.
In the realm of cryptocurrency, a more permissive regulatory environment is anticipated. This could position the U.S. as a leader in digital asset innovation. Yashin Manraj, founder of Pvotal Technologies, observes that “the crypto world is reacting positively,” with many projects ramping up hiring and growth in the U.S. This optimism suggests increased venture capital funding and a raise in tech startup IPOs. The administration is expected to prioritize technological sovereignty, particularly in sectors like semiconductor manufacturing and quantum computing. Strengthening domestic supply chains aligns with a broader goal of reducing reliance on foreign technology, especially from strategic competitors like China. Nag points out that “the $100 billion SoftBank investment commitment fits into this framework as a mechanism for rapidly scaling U.S. AI capabilities and ambitions.”
Manraj adds, "Policies focused on reducing global supply chain dependence could weaken tech industries in the European Union and emerging markets.” By concentrating innovation and funding within the U.S., the administration aims to bolster local economic growth while maintaining a competitive edge.
While the potential for rapid technological advancement is significant, this approach is not without challenges. The emphasis on speed over safety in AI development could lead to unforeseen consequences. Governance frameworks may lag behind technological advancements, creating gaps that require remediation in the future. Additionally, a shift toward domestic tech dominance might exacerbate global brain drain and hinder international collaboration
Trump's predicted approach to technology combines deregulatory instincts with proactive industrial policies aimed at maintaining U.S. dominance in emerging technologies. Appointees like Ferguson and Sacks represent a shift toward techno-pragmatic governance, emphasizing expertise and growth over broad political mandates. The strategy offers opportunities for rapid progress but requires careful oversight to ensure sustainability.
As Dev Nag puts it, "The key challenge for this administration will be maintaining the delicate balance between fostering rapid innovation and ensuring long-term technological resilience."