Trump Signs Order Banning ‘Woke AI’ in Federal Contracts
- Lyla Velez
- July 24, 2025
- Policy
- 0 Comments
Key Takeaways:
- Trump bans “woke AI” from U.S. federal contracts.
- Mandates ideologically neutral AI in government.
- Affects tech firms and AI market procurement.
The executive order highlights the United States’ stance against AI systems perceived as aligning with ideological agendas. It aims to influence how AI models are procured and applied within government operations.
Donald Trump signed the executive order, joined by Howard Lutnick, Scott Bessent, and Jensen Huang. This move marks the first federal ban on ideologically biased AI. The goal is to ensure AI systems used by the government remain free from political influences.
Immediate impacts include influencing major AI providers like Microsoft, Nvidia, Amazon, and Google. They must align with Unbiased AI Principles to qualify for federal contracts. The executive order does not currently mention specific cryptocurrencies or crypto market disruptions.
“While the Federal Government should be hesitant to regulate the functionality of AI models in the private marketplace, in the context of Federal procurement, it has the obligation not to procure models that sacrifice truthfulness and accuracy to ideological agendas.” – Donald J. Trump, Executive Order
The financial implications are yet unclear, as direct funding allocations were not detailed in the order. Whether U.S.-based tech companies can adapt remains a concern. The move reflects a regulatory trend prioritizing neutrality in technology procurement. Thus far, cryptocurrency markets and projects remain unaffected by this executive order.
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