Trump calls off AI executive order over concern it could weaken US tech edge

President Donald Trump scrapped plans to sign an executive order on artificial intelligence Thursday, claiming the measure risked undermining America’s lead in AI development. Speaking to reporters, Trump stated, 'We’re leading China, we’re leading everybody, and I don’t want to do anything that’s going to get in the way of that lead.' The order, which was set to establish a framework for evaluating national security risks in advanced AI systems, had been developed in collaboration with U.S.-based tech firms including Anthropic, OpenAI, and Google, according to a person familiar with White House deliberations. The directive was intended to create a voluntary system for reviewing cutting-edge AI models before their public release, following concerns from the banking industry about AI’s growing ability to exploit cybersecurity vulnerabilities. In April, Treasury Secretary Scott Bessent and outgoing Federal Reserve Chair Jerome Powell convened an emergency meeting with Wall Street executives to discuss risks posed by Anthropic’s Claude Mythos model. Bessent warned that while some banks had stronger cybersecurity measures in place, others lagged, and the meeting aimed to align best practices across the sector. Trump’s decision contrasts with his earlier stance of dismantling AI safety regulations introduced by President Joe Biden. His administration had positioned AI as a key driver for economic growth, hosting tech industry events at the White House and during international summits, such as a recent meeting with Chinese President Xi Jinping. However, voter concerns about AI’s impact on jobs, daily life, and energy costs have created internal divisions among Republicans over whether to support or regulate the industry. Complicating matters further, the U.S. government is engaged in a legal dispute with Anthropic, the company behind Claude, after Trump ordered federal agencies to halt its use in February following a highly publicized conflict. The canceled executive order had sought to address these tensions by fostering collaboration between the government and trusted cybersecurity experts to mitigate risks while maintaining U.S. dominance in AI innovation.