Newly sworn-in US President Donald Trump has overturned an executive order from the Biden administration that implemented oversight measures for companies engaged in the development of significant AI models.

The Biden directive, enacted in October 2023, was primarily voluntary and mandated that major AI developers, such as OpenAI and Google, provide safety assessments and essential information to the federal government.

This order established a framework for AI safety standards designed to safeguard privacy and prevent civil rights infringements, including racial discrimination, while also advocating for protections against national security risks.

While leading tech firms involved in advanced AI development supported the initiative, many smaller tech entrepreneurs, a group that largely favored Trump, were against it.

The repeal on Monday leaves the United States, which hosts the majority of the world's most advanced AI models, without formal guidelines for AI development.

Following the global impact of ChatGPT's launch, tech leaders, including Trump supporter Elon Musk, urged for prompt government intervention to regulate AI development, even as they competed vigorously in the sector.

The 2024 Republican party platform described Biden’s order as “dangerous,” asserting that it hindered AI innovation and imposed a leftist agenda on technological progress.

The US's laissez-faire approach stands in stark contrast to other regions that are enacting AI regulations.

The European Union enacted its comprehensive AI Act in May 2024, which sets legally binding rules based on risk assessments, while China is in the process of formulating its own regulatory framework.

Alexandra Reeve Givens from the Washington-based Center for Democracy & Technology remarked that Biden’s executive order “played a valuable role in shaping the public and private sectors’ approach to AI at a breakthrough moment for the technology.”

“However, regardless of the Order's status, it is in everyone's best interest to continue adopting AI tools in a smart and responsible manner to ensure that America remains a leader in AI governance.”