The technology industry stands at a pivotal moment as it anticipates potential shifts in federal policy. With the Trump administration preparing to take office, industry stakeholders are analyzing how various policy changes could reshape innovation, regulation and market dynamics across the United States.  

This analysis examines the key areas that could significantly impact technology companies, offering insights into both opportunities and challenges that may emerge. 

7 potential areas of impact for technology companies 

1. Artificial Intelligence and innovation

A significant shift in AI policy is expected, with the administration likely to take a more deregulatory approach. The Biden administration’s AI executive order may be replaced with policies focused on accelerating innovation and reducing restrictions.

Companies can expect fewer constraints on AI development, though they will need to balance this freedom with maintaining responsible development practices and managing potential risks. This could create new opportunities for AI startups while potentially raising concerns about safety and bias in AI systems. The administration’s emphasis on “AI development rooted in free speech” suggests a departure from current frameworks focused on equity and algorithmic bias controls. 

2. Regulatory environment

The approach to tech regulation could see substantial changes, particularly regarding content moderation and platform liability. Section 230 reforms may resurface, potentially affecting how platforms manage content and user interactions. The administration’s stance on tech regulation will likely emphasize reducing barriers to innovation while potentially increasing scrutiny of perceived political bias in content moderation practices. Platform companies may need to prepare for new interpretations of existing regulations and potential challenges to their content moderation practices.

3. Trade and supply chains

International trade policies could significantly impact the tech sector, particularly regarding relations with China. The administration has proposed substantial tariffs on imports, with special focus on goods from China, which could reshape global supply chains for technology companies. This could lead to increased costs for components and finished products, potentially driving companies to restructure their manufacturing and sourcing strategies.

Companies may need to consider reshoring operations or diversifying their supply chains to reduce exposure to potential tariffs and trade restrictions. The semiconductor industry, in particular, could face significant changes as the administration reassesses current policies on domestic manufacturing support and international trade relationships. 

4. Mergers and competition

The administration’s approach to antitrust enforcement could shift significantly. While oversight of major tech platforms may continue, the broader M&A environment could become more permissive. This might lead to increased consolidation opportunities, particularly for mid-sized technology companies, though large tech platforms may still face scrutiny.

The potential appointment of new leadership at the Federal Trade Commission and Department of Justice could signal a return to more traditional merger review standards, potentially easing the path for certain transactions while maintaining focus on significant market concentration issues. 

5. Immigration and talent

Changes to immigration policy could affect the technology sector’s ability to attract and retain global talent. The industry should prepare for potential modifications to H-1B visa programs and other immigration policies that have traditionally been crucial for tech workforce development.

Companies may need to adapt their talent strategies and consider alternative approaches to addressing skills gaps. This could include increased investment in domestic training programs or development of remote work options to access global talent pools while navigating immigration restrictions. 

6. Data privacy and security

While specific privacy regulations may see changes, national security concerns regarding data protection are likely to remain prominent. The administration may seek to streamline existing privacy frameworks while maintaining strong protections against foreign access to sensitive data.

Cross-border data flow requirements and localization rules could evolve, potentially affecting how companies structure their global operations. Cybersecurity standards and enforcement approaches may shift, with increased emphasis on protecting critical infrastructure while potentially reducing compliance burdens in other areas. 

7. Emerging technology policy

The administration’s approach to emerging technologies could create new opportunities and challenges. Areas like autonomous vehicles, cryptocurrency and quantum computing may see reduced regulatory barriers, potentially accelerating innovation while raising new questions about safety and security standards. The administration’s tech-forward stance could particularly benefit companies in these sectors, though they will need to balance increased freedom to innovate with maintaining public trust and safety.

Strategic considerations for technology industry stakeholders

Technology companies should consider several strategic adjustments in preparation for potential policy changes: 

• Review global supply chain strategies in light of potential trade policy shifts 
• Evaluate AI development roadmaps under potentially reduced regulatory constraints 
• Assess talent strategies considering possible immigration policy changes 

The path forward for technology under a Trump administration will likely feature reduced regulatory oversight alongside increased scrutiny of platform bias and content moderation practices. Success will require careful navigation of these evolving dynamics while maintaining focus on innovation and market competitiveness. Industry participants should prepare for various scenarios while remaining attentive to both policy developments and market conditions that ultimately drive sector performance. 

How BPM can help

As the technology landscape evolves under potential policy shifts, having knowledgeable advisors becomes crucial for navigating both opportunities and challenges. BPM’s technology professionals help stakeholders optimize their operations and strategies through detailed policy analysis, regulatory guidance and strategic planning.  

Whether you’re looking to evaluate M&A opportunities, explore emerging technologies or restructure your operations, our team can provide the insights needed to make informed decisions in this dynamic environment. Contact BPM’s technology team today to discuss how we can help position your organization for success.