Trump’s tech agenda: Deregulation, AI and American dominance

In his first wave of executive actions, President Trump made his priorities for the tech industry clear — cutting regulations, accelerating innovation and cementing America’s leadership in critical sectors, such as artificial intelligence (AI) and digital finance.

Trump explicitly overturned the previous administration’s policies, many of which emphasized fairness and non-discrimination in AI and technology development, to remove barriers to innovation. On January 27, he also rolled back funding for clean energy initiatives, diversity, equity and inclusion (DEI) programs; and environmental, social and governance (ESG) efforts.

These shifts have broad implications for the future of AI development and regulation and the role of government in emerging technologies. This administration is also expected to take a markedly different stance on issues such as social media governance and green technology investments.

The leadership landscape  

Trump’s leadership appointments include industry veterans and free-market advocates, signaling a pro-business shift compared to the prior administration. Many of the appointees have backgrounds in private-sector leadership, venture capitalism or entrepreneurship, rather than traditional government or academic roles.

For example, Jared Isaacman, the nominee to lead NASA, is the founder and CEO of a payment processing company. David Sacks, a former PayPal executive, has been named Special Advisor for AI and Crypto, a newly created role. Likewise, Elon Musk is leading Trump’s newly formed U.S. Department of Government Efficiency (DOGE).

Several of these figures, including Sacks and Musk, have openly advocated for less federal oversight in AI, social media and cryptocurrency. These appointments also reinforce Trump’s position on AI and space dominance as matters of national security.  

Artificial intelligence

On January 23, 2025, Trump revoked Biden-era AI policies that required AI developers to conduct safety tests and share results with the U.S. government if their systems posed risks to national security, the economy, public health or safety. In their place, Trump issued a new executive order mandating the development of a federal AI action plan within 180 days.

The call for a federal action plan suggests a shift toward centralized AI regulation, potentially limiting states’ abilities to regulate AI. This could lead to conflicting state and federal guidelines, and tension in states that have already introduced AI governance measures.

Regulation and policy typically mitigate AI harms by establishing frameworks for governance and transparency, ethical practices and public awareness. Trump’s AI policy will need to address a range of potential risks, including deepfakes, disinformation, algorithmic biases, privacy violations, cybersecurity and workforce displacement.

Also on January 23, Trump issued an executive order to establish regulatory clarity for digital financial technologies, including blockchain and cryptocurrencies.

While the administration has not altered export controls on advanced computing chips implemented under Biden, it is evaluating export policies and other strategies to maintain U.S. dominance in AI — a position China recently challenged. On January 27, Chinese company DeepSeek announced significant AI progress without high-performance chips. DeepSeek’s announcement raised concerns about the effectiveness of current U.S. restrictions.  

The Trump administration also proposed imposing tariffs on semiconductors manufactured in Taiwan to incentivize domestic production. While such tariffs could boost U.S. production and reduce reliance on foreign manufacturing, they could also increase costs for tech companies that depend on these components.

Lastly in the AI realm, Trump announced a $500 billion joint venture called Stargate to develop advanced AI infrastructure in the U.S. Tech giants OpenAI, Oracle and SoftBank and the investment firm MGX are collaborating on the project to increase data center availability and create jobs in the U.S.

Section 230

Section 230 of the Communications Decency Act of 1996 protects online platforms from liability for user-generated content. This means companies like Facebook and YouTube cannot be sued for defamatory or false content posted by users — and they can moderate or remove content such as hate speech and illegal activity without being sued for censorship.

It’s also a lightning rod for controversy. Critics on one side argue that platforms unfairly censor content, while the counterpoint insists platforms don’t do enough to remove harmful content. Some lawmakers want tech companies to be held accountable for content they allow, while others warn that changing Section 230 would restrict free speech.

Trump has repeatedly called for Section 230 to be reformed or repealed. In 2020, he issued an executive order directing agencies to review the law, but the law was unchanged. If he succeeds this term, it could trigger legal and political battles:

• Less content moderation could lead to a rise in hate speech, harassment, misinformation or AI-generated disinformation.
  
  
• Civil rights and advocacy organizations may push back, arguing that weaker Section 230 policies disproportionately harm disadvantaged and vulnerable groups. They could pursue legal action against tech companies for discrimination against marginalized communities.
  
  
• Some states could pass their own laws imposing stricter content moderation rules, leading to legal battles between state and federal authorities (similar to conflicts over abortion laws).

The Federal Trade Commission (FTC), now chaired by Andrew Ferguson, will play a key role in overseeing social media companies. Ferguson has expressed a desire to increase tech companies’ accountability and protect freedom of speech.

Reforming or repealing Section 230 could increase tech companies’ legal exposure — and stress-test the consequences of deregulation on online speech and liability.

Green, DEI and ESG technologies

Green, DEI and ESG technology companies are likely to face significant challenges under this administration, given abrupt changes to federal funding and opposition to what Trump views as “progressive” corporate initiatives. He already rolled back funding and support for clean energy, DEI and ESG programs, making it harder for tech firms in these sectors to secure funding or government contracts.

Sustainability-focused startups that rely on grants and government incentives will feel the impact immediately, as will tech companies that offer DEI-focused analytics tools for corporate hiring and workforce management.

Some states may attempt to counteract federal rollbacks, similar to the battles looming over Section 230. In the meantime, Trump’s policies effectively shrink the market for these technologies.

Implications for the tech industry

The Trump administration aims to make it easier for U.S. companies to conduct business and innovate — and it views regulation as a major obstacle. The net effect of deregulation and “America-first” policies, such as tariffs, is still unfolding. However, one thing is clear: Technology will remain a central policy focus. Trump sees the tech sector and AI as critical to reinforcing U.S. leadership on the global stage.

How Wipfli can help

Move fast and break things? We’re there. Wipfli can help you manage risk and deliver results in this rapidly changing environment. Let’s find opportunities to build, innovate and thrive. Visit our technology page or contact us to learn more. For continuous updates on administration policies impacting the tax and energy sector, follow our policy updates page.