US AI Executive Order – Part III: Reactions

Reactions to the Executive Order

Bradley Tusk, CEO of Tusk Ventures, a venture capital firm investing in technology and AI, welcomed the move in regards to AI but noted that tech companies may hesitate to share proprietary data with the government due to concerns about exposing it to competitors.

He added that “without a real enforcement mechanism—which does not appear to be fully addressed in this executive order—the concept is strong, but compliance may remain limited.”

NetChoice, a national trade association representing major tech platforms, described the order as a “red line for AI,” warning that it could ultimately hinder market entry for new firms and competitors, while significantly expanding federal control over American innovation.

Some experts believe the directive goes beyond earlier voluntary commitments made this year by companies such as OpenAI, Alphabet Inc., and Meta Platforms. Under those commitments, firms had agreed to label AI-generated content as part of efforts to enhance safety.

In a statement, the White House confirmed that the United States Department of Commerce will develop guidance for labeling AI-generated materials “to authenticate content and enhance technological safety,” ensuring greater transparency.

The order also introduces requirements for intellectual property (IP) regulators and federal law enforcement agencies to address the use of copyrighted materials in AI training. These include calls to “evaluate AI systems for potential violations of IP law.”

Prominent authors and visual artists have already filed multiple lawsuits accusing technology companies of using their works without authorization to train generative AI systems. In response, tech firms argue that such usage falls under the “fair use” doctrine within U.S. copyright law.

Max Tegmark, head of the Future of Life Institute, stated: “The reality is that the United States is currently far behind Europe. Policymakers, including those in Congress, must act by passing laws that both mitigate risks and safeguard progress.”

A senior U.S. official, while acknowledging Europe’s more aggressive regulatory approach, emphasized the necessity of legislative action. In this context, President Joe Biden has recently urged Congress to pass legislation focused on protecting personal data.

Chuck Schumer, Senate Majority Leader, expressed hope that AI legislation could be finalized within the coming months. U.S. officials have warned that AI may heighten risks of bias and civil rights violations, and the executive order aims to address these concerns by providing guidance to property owners and stakeholders to prevent discriminatory uses of AI algorithms.

The directive also calls for the development of “best practices” to address harms such as job displacement caused by AI. Additionally, it mandates the preparation of a report assessing AI’s impact on the labor market.