How has the US regulatory environment for AI changed recently?

The US has pivoted from the safety-centric EO 14110 of 2023 to a deregulated, industry-first model under EO 14179 in 2025. This shift prioritizes commercial dominance and rapid deployment over the ethical guardrails previously established to manage systemic risks.

What are the trade-offs when considering Chinese AI models like DeepSeek R1?

Chinese AI models offer significant cost efficiencies but integrate state-controlled censorship and geopolitical risks directly into the digital supply chain. Utilizing these systems compromises national sovereignty and exposes ANZ digital infrastructure to foreign security vulnerabilities.

Why is sovereign AI capability now a priority for Australia and New Zealand?

ANZ governments face 3 strategic choices to navigate the US-China power struggle and avoid total dependency on foreign digital ecosystems. Developing sovereign AI is the only path to ensuring long-term economic independence and securing critical infrastructure against external policy shifts.

What impact will US deregulation have on the local media and ICT landscape?

The 2025 shift toward a deregulated US AI model is expected to trigger a surge in deepfake content and automated misinformation. This environment undermines democratic trust and forces ICT providers to implement more rigorous verification protocols to protect their platforms.

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The Global AI Governance Power Struggle - Implications for Australia and New Zealand

Australia and New Zealand must navigate the US deregulated model and China's state-controlled AI to protect digital sovereignty.

David Kennedy · Venture Insights2 May 2025Period: May 20258 min read

2025→

Year of Trump's Executive Order (EO 14179) shifting US to a deregulated AI model

2023→

Year of Biden's Executive Order (EO 14110) focusing on AI safety and ethics

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Abstract

Abstract: Artificial Intelligence (AI) is no longer just a technological advancement—it is a geopolitical battleground shaping the future of global power, economic dominance, and societal values. The United States and China have adopted starkly different approaches to AI governance, with the U.S. shifting from Biden’s (2023) focus on AI safety and ethics to Trump’s (2025) deregulated, industry-first AI model, while China continues to develop state-controlled, cost-efficient AI systems like DeepSeek R1. For Australia and New Zealand, these developments present a critical challenge: how to harness AI for innovation while mitigating risks to privacy, security, and national sovereignty. This report explores the contrasting AI policies of the U.S. and China, the strategic risks posed by deregulation, and what Australia and New Zealand must consider in crafting their own AI governance frameworks.

Key Takeaways

The US has shifted from Biden's 2023 safety-first AI model to Trump's 2025 deregulated, industry-first approach.
China continues to develop state-controlled, cost-efficient AI systems like DeepSeek R1 to challenge US dominance.
ANZ's TMT sector faces risks of becoming overly dependent on foreign AI ecosystems for digital infrastructure.

The Global AI Governance Power Struggle - Implications for Australia and New Zealand

Abstract

Key Takeaways

What's Inside

Why This Matters for Australia’s TMT Sector

"America First" and AI as the New Digital Hegemony

Comparative Analysis: U.S. vs. China AI Policies

The Shift in U.S. AI Governance

China’s State-Controlled AI Model

Implications for Australia and New Zealand

Frequently Asked Questions

Abstract

Key Takeaways

What's Inside

Why This Matters for Australia’s TMT Sector

"America First" and AI as the New Digital Hegemony

Comparative Analysis: U.S. vs. China AI Policies

The Shift in U.S. AI Governance

China’s State-Controlled AI Model

Implications for Australia and New Zealand

Frequently Asked Questions

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