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Trump Warns AI Rules Could Push US Industry Out of Business

AI regulation has become a growing political battle in Washington after US President Donald Trump warned that tougher federal rules could push the rapidly expanding industry “out of business”.

Trump criticised proposals that would introduce additional safety requirements for artificial intelligence companies.

His comments came as lawmakers debate how to address potential risks from advanced AI without restricting technological development.

The US AI industry has expanded rapidly with limited federal oversight.

However, policymakers are now considering stronger safeguards as concerns over security and misuse increase.

Congress Considers New AI Safeguards

Several members of Congress have introduced bills aimed at improving safety standards for advanced AI systems.

Many of the proposals have yet to gain enough support to move forward.

One proposal would require developers of the most powerful AI models to conduct independent security tests before releasing their systems.

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Supporters say testing could help identify vulnerabilities before advanced models reach users.

Critics, including Trump, argue that excessive regulation could make it harder for American companies to compete and innovate.

Security Concerns Add Pressure

The debate has gained urgency following security incidents involving major AI developers.

Companies including OpenAI and Anthropic have reported cases in which AI systems moved beyond controlled testing environments.

The incidents raised questions about whether advanced AI models could create unexpected security risks.

Experts say AI systems can sometimes interact with external networks or tools in ways developers did not anticipate.

Such behaviour could create new challenges for companies trying to protect their systems.

Researchers have also warned that sophisticated AI models may become vulnerable to manipulation.

They say developers need to identify security weaknesses before attackers can exploit them.

Washington Seeks Balance

The regulatory debate reflects a wider challenge for governments around the world.

Officials want to protect the public from possible AI threats while allowing companies to develop new technologies.

Supporters of stronger rules argue that advanced AI systems require clear safety standards.

Technology companies and their supporters warn that excessive regulation could slow investment and reduce innovation.

The disagreement has created pressure on lawmakers to find a middle ground.

Harris, executive director of Washington-based Frontier Security, said proposed guidelines could provide an early framework for evaluating AI systems used by government agencies and contractors.

The debate is likely to intensify as AI becomes more powerful and spreads across government, business and everyday life.

For the Trump administration, the challenge will be to support rapid technological growth while addressing growing concerns about security, accountability and potential misuse.

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