Microsoft and OpenAI Face Suits as Trump Pushes for Uniform AI Rule

Microsoft gains as Trump seeks uniform AI rule, citing mounting copyright battles such as The New York Times' suit against Microsoft-backed OpenAI. Trump signs an AI Action Plan and vows to clear regulation-prone roadblocks. A single federal standard could cut legal headaches and speed AI rollout for Microsoft and its peers. Investors will be watching for draft AI regulations due this fall.

In a move aimed at streamlining regulations and addressing mounting copyright battles, President Trump signed an AI Action Plan and a series of executive orders on July 23, 2023. This action plan, titled "Winning the Race: America’s AI Action Plan," outlines key priorities for the Trump Administration's AI policy agenda [1].

Microsoft Corporation (MSFT) is poised to benefit from these developments. The AI Action Plan seeks to create a uniform federal standard for AI, which could significantly reduce legal headaches and expedite the rollout of AI technologies for companies like Microsoft. The plan also aims to accelerate AI innovation by removing unnecessary regulatory barriers, a move that could particularly benefit tech giants like Microsoft, which has been involved in high-profile copyright disputes, such as the ongoing lawsuit against Microsoft-backed OpenAI by The New York Times [1].

The AI Action Plan calls for the Federal Communications Commission (FCC) to identify state AI regulations that interfere with federal mandates, and for the Office of Science and Technology Policy (OSTP) to review current federal regulations that hinder AI innovation. This could lead to a more business-friendly regulatory environment, potentially reducing compliance costs and speeding up the deployment of AI technologies [1].

Investors are closely watching for the anticipated draft AI regulations due this fall. The successful implementation of these regulations could provide a clearer path for AI adoption and potentially boost the stock prices of companies like Microsoft, which are heavily invested in AI technologies [1].

References:
[1] https://www.insideprivacy.com/artificial-intelligence/trump-administration-issues-ai-action-plan-and-series-of-ai-executive-orders/