The Trump administration’s newly unveiled AI policy framework is receiving praise from some tech policy experts as a positive shift toward innovation, even as concerns remain about regulatory gaps and ideological overreach. Jessica Melugin, Director of the Center for Technology and Innovation at the Competitive Enterprise Institute, joined Dan Proft on Chicago’s Morning Answer to offer her analysis of the administration’s latest announcement.
Melugin described the White House’s updated approach as a “course correction” from previous policy stances, particularly when compared to the administration’s earlier executive order, which she characterized as fear-driven and overly focused on potential AI risks. The new plan is structured around three pillars: accelerating AI innovation by removing red tape, building out the nation’s AI infrastructure, and asserting American leadership in global AI diplomacy.
“There’s going to be challenges,” Melugin said, “but there’s also going to be a ton of economic efficiency, medical breakthroughs, and environmental benefits if we get it right.” She praised the administration’s renewed emphasis on development and international leadership over regulatory restraint.
On the issue of AI infrastructure, particularly energy demands, Melugin noted the plan’s directive to the EPA to ease environmental red tape where necessary. She saw this as a recognition of the substantial power requirements of AI data centers and an encouraging sign that fossil fuels and nuclear energy were no longer being sidelined in the policy conversation.
Still, Melugin flagged significant blind spots. Chief among them was the absence of federal preemption on state-level AI regulation. With multiple states developing disparate AI laws, she warned of a costly regulatory patchwork that would be particularly burdensome for smaller innovators and startups. “Only the big guys can afford to comply with 50 different rulebooks,” she noted, emphasizing the need for congressional action to establish uniform standards.
Melugin also raised caution about attempts to certify AI systems as “unbiased,” calling the goal subjective and potentially harmful to First Amendment principles. She argued that bias is an inherent part of human nature and should be addressed through market competition rather than federal decree. “Let users decide what they trust,” she said, pushing back on both left- and right-wing efforts to enforce ideological neutrality in AI systems.
Proft and Melugin discussed the recurring theme of moral panic that has accompanied each new technological advancement—from email and social media to AI. Melugin likened today’s AI debate to past concerns over digital misinformation and bias, arguing that society will adapt and evolve, just as it has before.
On a practical level, Melugin shared that she uses AI platforms like Gemini for summarizing information and testing model accuracy. While acknowledging that current AI systems are not infallible, she said they are becoming increasingly helpful for organization and productivity. She also expressed excitement about the open-source AI movement, which she believes will foster further innovation from independent developers.
Ultimately, Melugin saw the administration’s new plan as a step in the right direction—one that emphasizes opportunity over fear—but called for vigilance to ensure that efforts to regulate AI don’t unintentionally suppress the very innovation they aim to support.
Jessica Melugin joined the program from the Competitive Enterprise Institute, where she leads efforts to advance technology policy grounded in free markets and limited government.