The new executive order revoked the Biden Administration’s artificial intelligence plan. The AI Action Plan will take its place.
The new plan requires the American development of AI systems to be free from ideological bias or engineered social agendas. Effectively, the White House is committing the U.S. to "sustain and enhance America's dominance in AI to promote human flourishing, economic competitiveness, and national security."
While the plan erases Biden’s legacy, investors will need to watch most of the Magnificent Seven firms closely. Expect U.S. investments in AI to increase. Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOG) would benefit the most.
Apple (AAPL) will not benefit much from the AI boom. Youtubers and the media reported that Apple Intelligence inaccurately summarized world news. These hallucinations weakened Apple’s reliability in using AI to push news to iPhone users.
Meta Platforms (META) has yet to demonstrate its growth in AI investments. Still, the social media firm abolished its fact-checking program. That would align Facebook and Instagram closer to U.S. government policies.
Your Takeaway
The Trump Administration appears to want less federal control. The deregulation will benefit AI initiatives. ChatGPT and other AI solutions need to continue their innovation. China’s DeepSeek AI succeeded in outperforming ChatGPT in various performance measurements. It did so despite U.S. sanctions.
