Commerce cuts may stall White House AI plans

The U.S. government's decision to cut hundreds of jobs at the Department of Commerce during the ongoing government shutdown is threatening to derail its national artificial intelligence (AI) strategy, Axios reports, citing sources close to the department, Azernews reports, citing foreign media.

Since October 1, approximately 600 positions have been eliminated across key agencies, including the National Institute of Standards and Technology (NIST), the Bureau of Industry and Security (BIS), and the U.S. Patent and Trademark Office (USPTO).

Among those let go are technical experts critical to ensuring compliance with emerging AI regulations, safeguarding intellectual property, and maintaining industry collaboration. These personnel cuts have sparked concern within the tech community, as many of these agencies play a pivotal role in setting standards and guiding responsible AI innovation in the private sector.

Earlier this week, a federal judge issued a temporary injunction to halt some of the layoffs, acknowledging the potential long-term consequences for national security and technological leadership.

Experts warn that the disruption could give other global powers, including China and the EU, an edge in the race to shape international AI norms and standards.