Trump’s AI Plan Divides GOP: Populists Warn of Job Losses and Tech Overreach

Trump's AI Action Plan, emphasizing deregulation and innovation to counter China, is causing a rift in the Republican Party. Populist allies like Gaetz and Hawley criticize it for threatening jobs and values, fearing mass unemployment and Big Tech dominance. This backlash could fracture Trump's base ahead of elections.
Trump’s AI Plan Divides GOP: Populists Warn of Job Losses and Tech Overreach
Written by Lucas Greene

In the corridors of Washington, a rift is emerging within the Republican Party as President Donald Trump’s aggressive push into artificial intelligence sparks backlash from some of his staunchest allies. The president’s “America’s AI Action Plan,” unveiled in July, positions AI as a cornerstone of national security and economic dominance, but it has ignited fury among populist conservatives who view the technology as a threat to American jobs and values.

The plan, which draws heavily from Silicon Valley input, calls for deregulating AI development, boosting infrastructure like data centers, and accelerating exports of AI technologies. Trump has framed this as essential to outpacing rivals like China, declaring it a “national emergency” in executive orders that streamline approvals for energy-intensive projects.

Rising Tensions Among MAGA Loyalists

Critics within Trump’s base, including figures like Rep. Matt Gaetz and Sen. Josh Hawley, argue that the embrace of AI undermines the very workers who propelled him to office. According to a recent article in Futurism, these diehard supporters are “rallying against the president’s embrace of artificial intelligence,” seeing it as a betrayal of populist principles. They fear AI will automate jobs in manufacturing and other blue-collar sectors, exacerbating inequality.

Hawley, in particular, has publicly decried the plan, warning in a Senate hearing that unchecked AI could lead to “mass unemployment and surveillance states.” This sentiment echoes broader concerns in conservative circles, where AI is often portrayed as an elitist tool controlled by Big Tech giants—many of whom backed Trump’s campaign despite past antagonisms.

Silicon Valley’s Influence and Policy Shifts

The AI Action Plan’s origins trace back to Trump’s alliances with tech moguls like Elon Musk and Peter Thiel, who influenced its pro-innovation stance. As detailed in a Financial Times piece, “Silicon Valley’s sway in the White House is alarming populists in the president’s base,” highlighting how these relationships have shifted policy toward deregulation, including repealing Biden-era restrictions on AI ethics and safety.

This marks a departure from Trump’s first term, where he was more skeptical of tech dominance. Now, the plan prioritizes “winning the AI race” through measures like federal funding for AI research and partnerships with companies such as OpenAI and Oracle, as noted in AP News coverage of the unveiling.

Potential Political Repercussions

The backlash isn’t just rhetorical; it could fracture Trump’s coalition ahead of midterm elections. Populist voices on platforms like X, formerly Twitter, have amplified discontent, with influencers decrying AI as a tool for globalist agendas. David Icke, a prominent conspiracy theorist, posted about the “Trump/Big Tech Psyop” aimed at selling AI to skeptics, reflecting grassroots unease.

Internally, White House advisors like Michael Kratsios are navigating these tensions, as explored in an Axios exclusive. Kratsios emphasizes a “hands-off, pro-growth approach,” but critics argue it ignores risks like data privacy breaches and job displacement.

Balancing Innovation with Base Demands

For industry insiders, the plan’s emphasis on infrastructure—such as fast-tracking nuclear power plants for AI data centers—signals massive opportunities in energy and tech sectors. Yet, as Politico reports, “Trump’s White House is all-in on building powerful American artificial intelligence. The populist base is starting to push back,” underscoring a growing divide.

Trump has responded by touting AI’s potential to create jobs in new fields, but skeptics remain unconvinced. In a speech transcribed on the White House site, he positioned AI as “America’s next energy revolution,” yet this hasn’t quelled fears among his core supporters.

Long-Term Implications for Tech Policy

As the administration forges ahead, the furor highlights a broader ideological clash: innovation versus protectionism. If unresolved, it could force Trump to recalibrate, perhaps by incorporating more worker safeguards into future AI policies.

Analysts suggest this tension mirrors historical party splits over technology, from automation in the 1980s to today’s digital disruptions. For now, the president’s AI ambitions are testing the limits of his populist appeal, with outcomes that could reshape U.S. tech strategy for years to come.

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