The recent repeal of President Biden’s executive order on artificial intelligence (AI) by President Trump marks a pivotal moment in the evolution of AI policy in the United States. While this move is framed as a way to foster innovation and reduce regulatory burdens, it leaves a concerning void in oversight, governance, and compliance. These gaps have real-world implications for individuals and businesses alike, raising critical questions about trust, accountability, and ethical use in an increasingly AI-driven world.

As someone deeply committed to ensuring technology uplifts and serves all communities, I believe this shift demands proactive leadership and collaborative solutions. Let’s explore the seven major challenges—and opportunities—that arise from this new reality.

Lack of Formalized Oversight

Before the repeal, the Biden administration’s executive order sought to establish a foundation for accountability in AI development. It required companies to disclose risks, safeguard against misuse, and ensure transparency in their AI systems. With these mandates now removed, we are left with no centralized framework to guide responsible AI practices.

For everyday consumers, this creates a troubling scenario: AI tools may no longer be designed with safety and fairness as core priorities. The lack of oversight opens the door to risks like privacy violations, disinformation, and misuse. For corporations, the absence of clear regulations increases uncertainty, exposing them to potential legal and reputational pitfalls if their AI implementations inadvertently cause harm.

This lack of formal guidance isn’t just a policy gap; it’s a call to action for organizations to step up and lead ethically in the face of deregulation.

Unchecked Development of AI Tools

The repeal eliminates the need for transparency in how AI tools are developed and deployed. Previously, companies were encouraged to share details about their datasets, risks, and safeguards, fostering trust among users and stakeholders. Now, there’s no such obligation.

For consumers, this means a greater likelihood of encountering AI tools that are rushed to market without proper testing or safeguards. The rise of deepfakes, disinformation campaigns, and other harmful applications is a real concern. For corporations, deploying unregulated AI tools can lead to unforeseen societal impacts, legal liabilities, and ethical challenges.

In this environment, organizations must prioritize rigorous testing, transparency, and education to prevent their innovations from becoming liabilities.

Increased Corporate Responsibility

With the government stepping back, corporations bear the full weight of ensuring ethical AI deployment. While industry leaders like OpenAI and Google have adopted their own frameworks, this self-regulation isn’t universal. For many companies, the balance between profit and responsibility can feel precarious.

For consumers, this uneven approach creates a fragmented landscape where some tools prioritize ethics while others cut corners. For corporations, the stakes are higher than ever. Failing to self-regulate could result in lawsuits, consumer mistrust, or public backlash.

However, this challenge is also an opportunity. Companies that embrace proactive governance and risk management can build stronger relationships with their customers and position themselves as leaders in ethical innovation.

Global Competitive Pressure

While the U.S. is easing restrictions, other nations are forging ahead with comprehensive AI governance frameworks. The European Union’s AI Act, for example, sets clear standards for safety, fairness, and transparency. Similarly, China is investing heavily in AI oversight as part of its broader technological strategy.

This divergence places U.S. companies at a crossroads. Without clear domestic guidelines, they risk falling behind in global markets that demand compliance with higher ethical standards. For consumers, this could mean reduced trust in U.S.-developed AI tools. For corporations, navigating international regulations while dealing with domestic deregulation will require adaptability and foresight.

Ethical Risks Without Guardrails

AI is a powerful tool, but without oversight, it amplifies risks such as bias, privacy violations, and job displacement. The Biden administration’s executive order aimed to address these concerns by establishing ethical guardrails. Now, these protections are gone.

Marginalized communities may bear the brunt of biased AI outcomes, while privacy breaches could become more frequent. For businesses, ignoring these ethical challenges is not just a moral failing; it’s a financial and reputational risk.

Ethical lapses can lead to public backlash, eroded consumer trust, and even regulatory penalties in markets with stricter standards. Companies must recognize that doing what’s right isn’t just good ethics—it’s good business.

The Need for Consumer and Corporate Vigilance

In the absence of federal oversight, vigilance becomes paramount. Consumers must educate themselves about the AI tools they use, verifying sources and understanding potential risks. Corporations, meanwhile, must take the initiative to implement robust governance frameworks.

Tools like the National Institute of Standards and Technology (NIST) AI Risk Management Framework, ISO 42001:2003, and the OECD AI Principles provide valuable guidance. For instance, companies can use the NIST framework to identify risks at every stage of AI development, ensuring transparency and accountability. ISO 42001 enables organizations to establish responsible AI management systems. The OECD principles emphasize fairness and human-centric values, helping organizations align their AI strategies with global ethical standards.

By adopting these frameworks, Cognify enables clients to not only mitigate risks but also build systems that foster trust and reliability, setting a benchmark for others to follow.

Long-Term Uncertainty

The repeal introduces significant policy uncertainty. Without a stable regulatory environment, corporations may hesitate to invest in innovative AI solutions. For consumers, this inconsistency undermines trust in the safety and reliability of AI tools.

Policy whiplash creates an unstable business environment, stalling progress and innovation. Companies must find ways to navigate this uncertainty, balancing immediate needs with long-term strategic goals.

Cognify: Bridging the Governance Gap

In this complex and evolving landscape, Cognify stands out as a beacon of ethical leadership. Our mission is to empower businesses and consumers alike by providing transparent, reliable, and human-centric AI solutions.

For Consumers

While business and commercial enterprises have faced uncertainty, consumers and end users have continued to bear the brunt of unfocused and imprecise AI at best, and nonsensical and harmful implementations at worst. Generative AI has amplified some of the more persistent challenges of technology deployments involving unclear judgment, lack of transparency, and scant accountability.

Cognify's solutions begin to peel back these issues and return some real handholds and guardrails to the consumer. Solutions such as liability frameworks and tools enabling traceable data sources ensure that users have some idea of exactly where "the buck stops" and possibly allow users to avoid systems using data sources with well-known biases. Explainable AI (XAI) ensures that users and consumers can see and understand an AI's rationale as easily as they could ask another person "How'd you come up with that answer?". Further, "Human-In-The-Loop" (HITL) solutions ensure that escalation is never impossible, as having a human expert supervise a system ensures that the system remains relevant to human users.

With these solutions, reasonable frameworks, and provable compliance, Cognify can bring real tangible control back to users and consumers, establishing value, restoring faith, and promoting participation without harm with these systems.

For Corporations

Cognify offers end-to-end governance frameworks tailored to industries such as legal services, healthcare, and finance. By leveraging compliance best practices, advanced technologies like Explainable AI (XAI), and aligning with international standards, we help businesses navigate the challenges of deregulation while fostering innovation. Our scalable solutions enable organizations to implement responsible AI systems confidently, ensuring both compliance and competitive advantage.

Conclusion

The repeal of President Biden’s executive order on AI is a defining moment in the evolution of technology governance. It underscores the urgent need for robust governance solutions, while leaving gaps in compliance and increasing risks for consumers and corporations alike.

While this presents challenges, it also opens the door for organizations to lead with integrity and purpose. Cognify stands at the forefront of this movement, bridging the gap left by deregulation and providing ethical, transparent, and effective AI systems.

By prioritizing consumer protection and corporate accountability, Cognify not only addresses current challenges but also sets the standard for the future of AI governance in a rapidly changing world.

Together, we can build a future where AI serves humanity, driving progress and prosperity for all.

Build With Solid Governance. Build with Cognify.

About Cognify Solutions

Cognify Solutions provides AI governance consulting, certification support, and compliance frameworks to organizations seeking to transform regulatory hurdles into strategic opportunities. To learn more about our approach and how we can help, check out our AI Governance Guidance & Coaching and Certification Support services—or join our Cognify Insight Network for deeper discussions.