Trump Delays AI Order, Citing Risk to U.S. Lead Over China

The Oval Office ceremony was called off hours before it was to begin. Trump told reporters he did not want any action that might jeopardize America’s edge in AI, emphasizing that the U.S. is "leading China, we’re leading everybody."

The decision arrives amid heightened alarm in the financial sector about powerful AI models that can expose software vulnerabilities. In April, Treasury Secretary Scott Bessent and outgoing Federal Reserve Chair Jerome Powell convened an urgent meeting with Wall Street CEOs. They warned that Anthropic’s Claude Mythos model is "very powerful" and that banks vary widely in their ability to defend against cyber threats.

Bessent said the Treasury aims to bring banks together to share best practices and chart a path forward. The meeting underscored a broader industry push for clearer guidance on how to manage AI‑driven cybersecurity risks.

Republican allies of the president have suggested ways to place advanced AI tools in the hands of trusted security experts without formal government vetting. Critics argue that any screening could signal a shift from Trump’s campaign promise to roll back AI safety rules introduced by the previous administration.

What it means: The postponement signals a clash between the desire to protect national competitiveness and growing pressure from the financial sector for tighter AI oversight. The administration may seek a middle ground that safeguards security without imposing broad regulatory hurdles.

Watch for a revised executive order or alternative framework that balances industry input with the White House’s goal of preserving the United States’ AI advantage.