US President Donald Trump on Thursday abruptly shelved plans to sign a new executive order on artificial intelligence as he did not want any government action to weaken America's lead in the global AI race.
The White House had planned an Oval Office event with top technology executives before Trump decided to pause the move just hours before the signing ceremony, Associated Press reported.
“We're leading China, we're leading everybody, and I don't want to do anything that's going to get in the way of that lead,” Trump told reporters.
The proposed order would have created a framework for the government to review national security risks linked to advanced AI systems before they are publicly released, a person familiar with the discussions told the agency.
The process was expected to work as a voluntary partnership with US-based AI firms including Anthropic, OpenAI and Google.
The discussions come amid rising concern over how rapidly AI systems are advancing, especially their ability to identify cybersecurity weaknesses in software used by banks and major institutions.
In April, Treasury Secretary Scott Bessent and outgoing Federal Reserve Chair Jerome Powell held an urgent meeting with Wall Street CEOs over cybersecurity risks linked to Anthropic's AI model, Claude Mythos.
“This new Anthropic model is very powerful,” Bessent had said at CNBC's “Invest in America Forum” in Washington.
“Some banks are doing a better job in cybersecurity than others, and we want to have the ability to convene them and talk about what is best practices and where they should be heading,” he added.
Trump has repeatedly promised to roll back AI safety rules introduced under former President Joe Biden. His administration has promoted the AI sector as a major driver of economic growth and a key area in the competition with China.
But at the same time, the administration is facing pressure from voters worried about AI's impact on jobs, privacy and energy use. Even Republicans are also divided on how closely the government should regulate the fast-growing industry.
The issue is further complicated by the government's legal dispute with Anthropic. In February, Trump directed federal agencies to stop using the company's chatbot Claude after tensions between the Pentagon and Anthropic CEO Dario Amodei became public.
Vice President JD Vance this week said the administration is trying to balance innovation with safety concerns.
“The president wants us to be pro-innovation. He wants us to win the AI race against all other countries in the world,” Vance said during a White House briefing. “We also want to make sure that we're protecting people.”
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
