The incoming Trump administration’s announcement of a sweeping deregulatory agenda for generative artificial intelligence, or Gen AI, including repeal of former President Biden’s Executive Order on AI safety, has profound implications for professionals, businesses and public sector entities alike.
It signals a future where Gen AI development will accelerate rapidly. To remain relevant and effective in this new era, organizations across all sectors must adapt quickly to an increasingly disrupted environment.
Gen AI, a transformative technology capable of generating human-like text, images and code, has already proven its value across diverse domains. A study by McKinsey indicates that businesses integrating Gen AI achieve productivity gains of up to 45 percent in areas such as customer support and product development.
Similarly, government agencies stand to benefit significantly, using Gen AI to enhance service delivery, streamline operations and improve public engagement. As these technologies become easier to implement under a less restrictive regulatory environment, their adoption will surge, reshaping how value is delivered in both the private and public sectors.
For professionals, business leaders and government officials, this means disruption. The rapid acceleration of Gen AI development will not only redefine industry standards but also create new benchmarks for efficiency, innovation and personalization in public services. Imagine federal agencies using AI to process benefits applications in minutes, state governments deploying chatbots to provide 24/7 assistance to residents or municipal offices leveraging Gen AI to analyze and optimize urban planning. These capabilities, already in use by pioneering entities, are setting a new baseline, forcing others to adapt or risk falling behind.
The reduced regulatory landscape opens the door for businesses and government agencies alike to experiment and innovate more freely. For instance, Meta is heavily investing in AI-generated characters and profiles to enhance engagement on its platforms, while agencies like the Department of Veterans Affairs are exploring AI tools to improve healthcare delivery for veterans.
Deregulation creates opportunities for public institutions to leverage AI in ways that were previously hindered by red tape, allowing them to modernize operations and better serve constituents.
However, the risks of inaction are just as significant for government agencies as for businesses. Public sector entities clinging to traditional methods may find themselves unable to meet rising expectations for faster, more personalized services. Citizens increasingly expect AI-driven solutions, such as automated tax filing systems or AI-powered disaster response tools.
Agencies that fail to deliver risk losing public trust. Similarly, professionals working in the public sector must stay ahead of the curve, acquiring new skills to remain effective in an AI-enhanced workplace.
The challenge lies in understanding where and how to integrate Gen AI effectively to maximize its benefits. Professionals, including public servants, must focus on building AI literacy, understanding its applications, and learning how to collaborate effectively with these technologies. Acquiring new skills — such as data analysis, prompt engineering, or AI project management — will enable individuals to contribute meaningfully to AI-driven initiatives. Lifelong learning is no longer optional; it is essential in this rapidly evolving landscape.
According to PwC, a primary barrier to AI adoption is a lack of in-house expertise. Addressing this gap is critical, particularly in government agencies that often face budgetary and staffing constraints. Public institutions must invest in training programs, establish partnerships with AI vendors, and create opportunities for hands-on experience with AI tools. By fostering an AI-ready workforce, government entities can ensure smoother implementation and more effective applications of Gen AI.
Collaboration will also play a pivotal role in navigating this transformation. Businesses and government agencies alike should consider partnerships with AI-focused startups, consultants, research institutions, or technology providers to gain access to cutting-edge insights and tools.
For example, the Department of Energy has already partnered with private companies to use AI in optimizing energy consumption and grid reliability. Such collaborations not only accelerate adoption but also allow organizations to stay at the forefront of innovation. Additionally, professionals in both sectors can benefit from joining AI networks and attending conferences to stay informed about the latest developments and best practices.
Despite the opportunities presented by reduced regulatory hurdles, businesses and government agencies must remain mindful of ethical and risk management considerations. This is particularly important for government agencies, where public trust is paramount. Agencies must ensure that AI implementations are transparent, unbiased, and respectful of privacy. Mishandling these areas—such as through the use of biased algorithms in public services—could lead to widespread loss of trust and credibility, which may undermine the effectiveness of future initiatives.
Moreover, we need to address longer-term existential risks from AI development. A recent survey of 2,778 machine learning experts revealed they think there is a 16 percent chance that super-intelligent AI could entirely undermine humanity’s control upon its emergence. The study also showed they believe there is a 10 percent chance that superintelligence could be developed as soon as 2027, with a median estimate suggesting a 50 percent chance of its arrival by 2047.
The Trump administration’s deregulatory push may accelerate Gen AI’s development and deployment, but it also raises the stakes for businesses, professionals, and government agencies.
Trump’s ally Elon Musk has repeatedly expressed concerns about the existential risk of AI.
The pace of change will only intensify, and those who fail to adapt risk falling behind. For leaders in all sectors, this means making strategic decisions about where and how to integrate AI into operations while maintaining a focus on ethical considerations, risk management, and public accountability.
Gleb Tsipursky, Ph.D., serves as the CEO of the hybrid work consultancy Disaster Avoidance Experts and authored “Returning to the Office and Leading Hybrid and Remote Teams.“
