Brace For Impact: 6 ways Trump may shake up Big Tech, AI, chips

President elect Donald Trump defeated outgoing vice president Kamala Harris in the US Presidential Elections

President-elect Donald Trump made a stunning comeback in the US elections to trounce outgoing Vice President and Democratic party candidate Kamala Harris.

While Trump's campaign mainly focussed on strict immigration controls, tariff on foreign goods, and tax cuts, the 78-year-old also made some promises about artificial intelligence, anti-trust laws, and tech policy in general.

Here are six major developments to look out for in Trump's second tenure as President when it comes to tech policy:

Repealing Biden's order on AI? Trump, according to reports, plans to dismantle Biden's executive order on AI, which called for voluntary safety guidelines and privacy standards. Instead, he intends to promote “free speech”-driven AI development, raising concerns that a lighter regulatory framework may reduce protections against algorithmic bias.

A Washington Post report said that allies of Trump have drafted a sweeping AI executive order that aims to boost military technology and reduce regulations on AI development. The plan includes a section titled "Make America First in AI," signalling a dramatic potential shift in AI policy.

"Repealing Biden's executive order would likely minimise federal intervention, allowing tech companies to self-regulate, which could accelerate innovation. While this approach could drive investment and growth in different AI sectors, it may also expose risks related to privacy, bias, and security," said Jameela Sahiba, Senior Programme Manager at the Delhi-based think tank The Dialogue.

Anti-trust enforcement and Big Tech: American think thank Brookings  said that a re-elected Trump may continue the current anti-trust enforcement cases, but may give a green light to tech mergers and acquisitions. Additionally, The Federal Trade Commission (FTC) and the Department of Justice (DOJ), currently headed by Lina Khan and Merrick Garland, respectively, are likely to see leadership changes that could shape future tech-related enforcement.

"While Khan's departure from the FTC under the Trump regime maybe considered  a positive sign for Big Tech, the new government is also expected to increase tariffs and insist on jobs being brought back to America, which will pose significant challenges to their operations as they depend on the global supply chain for goods and brainpower," said Sourya Banerjee, a lawyer and policy consultant.

"The technology ecosystem will need to wait to discover the Trump government’s stance on big tech’s market dominance. The government’s position will likely be shaped by multiple competition and non-competition considerations, especially those of privacy, free speech, competition with Chinese companies, and the need to bring down prices due to bottlenecks in technology markets," said Saksham Malik, Senior Programme Manager, The Dialogue.

Uncertainty regarding semiconductor policy: Trump's criticism of the CHIPS and Science Act suggests that he may shift away from funding incentives in favour of protectionist measures to support the US semi-conductor industry. His previous comments indicate that the President-elect may prefer high tariffs on semi-conductor imports, rather than subsidies.

Experts feel that while this approach may boost local manufacturing in the US, it may also strain global supply chains and raise costs.

Ashok Chandak, president of India Electronics and Semiconductor Association (IESA) said, "A Trump administration could have mixed effects on India’s semiconductor and technology sector, shaped by policies on trade, immigration, and foreign relations."

Firstly, Chandak opines that the positive rapport between Trump and Prime Minister Modi, could be beneficial for India's bilateral business ties. Secondly, the industry executive said that America's policies and geopolitical climate can also be beneficial for India.

"In fact, with the geopolitical climate and U.S. efforts to reduce dependency on China, India has a strategic opportunity to become a stronger partner. While the U.S. may adjust policies like the CHIPS Act to boost its own semiconductor self-reliance, this is likely to align with India’s semiconductor goals, encouraging “friend-shoring” initiatives that could benefit both nations. India’s focus on semiconductor manufacturing through initiatives like the India Semiconductor Mission (ISM) and its competitive advantages in talent and cost make it well-positioned to expand its role in the global semiconductor supply chain," he added.

Musk’s influence: Businessman and investor Elon Musk, a major Trump supporter, may wield significant influence on tech policy, especially concerning electric vehicles (EVs) and space. His relationship with Trump could lead to favourable regulatory and contractual terms for his ventures.

"Musk has been one of the biggest supporters of Trump, and his influence may be there on all tech and AI policy the new administration comes out with, once Trump is  sworn in in 2025," Banerjee said.

Data privacy: during his first tenure as President, Trump upended all of Obama's policies, from data privacy to school connectivity, and has historically leaned towards light-touch regulation when it comes to data privacy. According to a Politico report from 2020, the Trump administration had made consistent efforts to limit the reach of "stringent data privacy laws" like the European Union's General Data Protection Rules (GDPR).

Reversal on TikTok: in June 2024, Trump posted on TikTok. This was a surprising move since he had tried to ban the app in the US during his first tenure as President in 2020.

Political analysts see this and his various comments made recently as a reversal of his policies regarding TikTok. In an interview to CNBC in March 2024, Trump had said that a ban on Tiktok would benefit Mark Zuckerberg, the CEO of Meta, a social media company that he believes is biased against him.