The new administration is expected to adopt a laissez-faire approach to AI regulation
The upcoming Trump presidency is set to have significant implications for the AI landscape, with potential ripple effects reaching the Middle East, particularly the Gulf Cooperation Council (GCC) countries such as Saudi Arabia and the UAE.
Over the past six months, the region has announced significant investment plans for the development of AI. In September 2024, Abu Dhabi-based AI-focused investment company MGX partnered with US-headquartered BlackRock, Global Infrastructure Partners and Microsoft to establish the Global AI Infrastructure Investment Partnership, which intends to mobilise a total investment potential of up to $100bn.
Saudi Arabia has similar plans. It was reported in November that Riyadh is planning a new AI project, Project Transcendence, with the backing of as much as $100bn.
Trump’s anticipated laissez-faire approach to AI regulation is expected to contrast sharply with the more stringent oversight implemented by his predecessor, President Joe Biden, according to the latest report by GlobalData’s Thematic Intelligence: Artificial Intelligence – Executive Briefing (5th Edition).
This shift in policy could lead to a divergence in AI regulation between the US and Europe, with the latter expected to continue with a more centralised, stringent approach.
For non-US-based companies, including those in the GCC, this could mean reconsidering where they source their AI solutions. While access to US-based AI vendors is unlikely to be restricted, it may come with caveats relating to data and IP that some organisations may find unreasonable.
The Trump administration is also expected to prioritise domestic commercial interests and US-based talent, which could lead to a talent drain from other regions, including the Middle East. This trend could potentially slow the growth of the AI sector in these regions.
Data sovereignty is another area that is likely to grow in importance under Trump’s presidency. Governments worldwide, including those in the GCC, are expected to use data sovereignty regulation to attract investment in AI data centres. This could lead to an increase in data protection and geo-specific hosting messaging from telcos and hyperscalers.
The Trump administration’s protectionist policies could also extend to AI. Provisions relating to foreign users and resellers in Biden’s 2023 AI Executive Order are likely to be kept and even enhanced, even if the order is repealed. This could mean that data from US companies and citizens will have to be stored in the US, potentially impacting the operations of data centres in the GCC.
With the upcoming Trump presidency likely to bring significant changes to the AI landscape, with potential implications for the development and use of AI and data centres in the GCC. Companies in the region will need to stay alert and be prepared to adapt to these changes.