Key Points:
- US pivots to rapid AI innovation, sidelining ethical guardrails.
- China pushes open-source AI, aiming for inclusivity.
- India can lead a balanced “third way” in AI governance.
US Accelerates AI Development
While tariffs and trade disputes dominate headlines, the United States has quietly executed a major shift in artificial intelligence policy. Under President Trump, the country has moved from caution to acceleration, replacing Biden-era safeguards with an innovation-first doctrine.
In January, Executive Order 14179 began dismantling regulatory barriers. By July, the AI Action Plan laid out more than 90 policy measures focused on speed, infrastructure, and global market dominance. The approach prioritises deregulation, streamlined approvals for data centres, and aggressive promotion of the American AI stack overseas.
Deregulation Versus Risk
Three executive orders accompanied the plan, including one targeting “woke AI,” another reducing red tape for AI infrastructure, and a third designed to set US technology as a global standard. This marks a decisive win for those favouring rapid expansion over the “safety-first” camp. Supporters argue that faster development could unlock breakthroughs in healthcare, education, and climate solutions. Critics warn of increased misinformation, bias, surveillance, and systemic risks without adequate oversight.
Global Reactions
Globally, the US shift is likely to intensify competition. Europe faces pressure to loosen its regulatory framework or risk losing startups to the US, though it may also strengthen its role as a hub for “trustworthy AI.” China is advancing its own open-source, collaborative strategy through initiatives like the Shanghai Initiative for a World AI Cooperation Organisation. While this stance could attract partners, concerns about state surveillance remain a barrier.
India’s Opportunity
For the Global South, the divergence between the US and China creates a strategic dilemma. Here, India has a potential opening. As the world’s largest democracy and a leader in Digital Public Infrastructure (DPI), India can position itself as a third pole in AI governance. By combining ambition with caution, it could promote “JanAI” – an approach that treats AI as a public good, builds inclusive infrastructure, and prioritises ethical innovation.
Looking Ahead
With the AI Impact Summit scheduled for February 2026 in India, the timing is opportune. To seize the moment, India would need a clear national AI mission, a strong regulatory framework, and collaborative governance involving industry, academia, and civil society. Trump’s AI gamble may push the US ahead in the technology race, but it comes with potential social costs. For India, the path forward is to avoid that trade-off and offer a balanced model others can follow..
