Trump Administration Argues Private Sector Can Manage AI Risks Amid Critic Pushback

The Trump administration has argued that private industry, rather than government regulation, is best positioned to address potential risks posed by artificial intelligence, according to a report published by CNBC on September 15.

The report said the administration, which has taken a broadly AI-friendly posture, contends that maintaining U.S. dominance over China in the rapidly growing AI sector is a critical national priority that should not be hindered by regulatory constraints.

According to CNBC, an administration official identified in the report as Hassett voiced this position, framing competitiveness with China as a central rationale for limiting federal oversight of the technology.

The report noted that critics have pushed back on this approach, expressing concern that relying primarily on private companies to self-regulate may not adequately address safety, ethical or societal risks associated with AI development.

CNBC did not provide further details in the excerpt reviewed regarding specific policy proposals or the identities of the critics referenced.

The debate over how to balance innovation with oversight has intensified as AI technologies expand rapidly across industries, with governments worldwide grappling with how much regulatory intervention is warranted.