Updated
Updated · CNBC · Sep 21
Bessent Rejects AI Liability Shield as Trump Backs Industry Expansion
Updated
Updated · CNBC · Sep 21

Bessent Rejects AI Liability Shield as Trump Backs Industry Expansion

3 articles · Updated · CNBC · Sep 21

Summary

  • Scott Bessent said AI developers must bear responsibility for harms from their models, rejecting any federal “liability shield” for the industry.
  • On CNBC, the Treasury secretary said “humans” — not AI systems — are responsible, aligning himself with Donald Trump’s resistance to a regulatory crackdown.
  • The remarks come as some AI leaders warn about risks from rapidly advancing models and have floated slowing development, a stance that has drawn pushback from Trump.
  • Bessent made the comments days before Trump is due to meet Xi Jinping in Washington, after the Treasury chief held weekend talks with Chinese Vice Premier He Lifeng.

Insights

Will holding AI companies fully liable for digital harms give rival nations an edge in the global technology race?
Without a federal shield, how will AI developers navigate the chaotic maze of state laws without stalling innovation?
If courts classify chatbots as defective products, could this legal shift fundamentally change how humans interact with artificial intelligence?