US President Donald Trump has warned that Congress could regulate the artificial intelligence industry “out of business”, highlighting the growing political debate over how the rapidly developing sector should be governed.

Trump made the comments in an interview with Punchbowl News published on Friday, as lawmakers continue to consider proposals aimed at increasing oversight of powerful AI systems.

Growing Debate Over AI Regulation

The AI industry has expanded rapidly in recent years, while federal regulation in the United States has remained limited.

Lawmakers have introduced a range of proposals aimed at addressing potential risks associated with increasingly powerful AI models. However, many of those proposals have yet to make significant progress through Congress.

The debate reflects a wider disagreement in Washington over how much government oversight the industry needs without restricting technological development and investment.

Proposed AI Safety Rules

Among the proposals being discussed is legislation that would require developers of the most powerful AI models to submit their systems for independent security audits.

Supporters of stronger regulation argue that advanced AI systems could create significant security and safety risks if they are deployed without adequate testing and safeguards.

Industry supporters, meanwhile, have warned that overly restrictive rules could increase costs, slow innovation and make it harder for American companies to compete globally.

Trump Warns Against Excessive Regulation

Trump’s comments underline his concern that excessive government intervention could harm the rapidly growing AI sector.

The president’s remarks come as the US seeks to maintain its position as a global leader in artificial intelligence while policymakers grapple with questions surrounding safety, competition, national security and corporate accountability.

The debate over AI regulation is likely to intensify as lawmakers continue considering how to balance technological innovation with safeguards for increasingly powerful systems.