Trump Rules Out Bessent for New AI Czar Role Amid Regulatory Clash

Key points

• Trump dismissed rumors of appointing Scott Bessent as AI czar, calling the reports 'fake news' and emphasizing Bessent's value at the Treasury.
• The role replaces David Sacks, who stepped down in March after a 130-day service limit; Trump announced the new 'AI Force' on Sept. 19.
• Sriram Krishnan, a former Microsoft and Meta executive, is a leading candidate, having architected the administration's AI Action Plan.
• Michael Kratsios, director of the Office of Science and Technology Policy, opposes global governance structures, favoring domestic capacity building.
• Sean Cairncross, the National Cyber Director, is another contender but has clashed with Bessent over Treasury's involvement in AI policy.

Background

The current AI czar position was held by venture capitalist David Sacks, who served from late 2024 until March 2026. Sacks stepped down after reaching the 130-day limit for special government employees. During his tenure, the administration focused on rolling back regulations and promoting data center growth. The new appointment comes amid a shift in the tech industry, where leaders from OpenAI and Anthropic are now calling for greater government intervention, a departure from the previous deregulatory stance.

How outlets are covering it

The New York Post highlights the internal power struggle, noting that Sean Cairncross clashed with Bessent, with some insiders doubting Cairncross's technical grasp. Fox News emphasizes the broader regulatory debate, citing Sen. Elizabeth Warren’s call for Congress to regulate AI and OpenAI CEO Sam Altman’s warnings about AI risks at the United Nations. Politico focuses on the immediate political fallout of the Bessent rumors, noting that four tech representatives had identified him as a serious contender before Trump’s denial. Scripps News provides a broader context of the Trump family’s business ties to the AI boom, suggesting potential conflicts of interest in policy decisions.

Why it matters

The selection of the next AI czar will determine the US approach to a trillion-dollar industry currently facing a regulatory vacuum. The choice between deregulation and oversight will impact global competitiveness, national security, and the pace of technological innovation. With AI advancing faster than legislative frameworks, the new leader will navigate pressure from both industry giants demanding safety measures and lawmakers seeking consumer protections.

What to watch

The White House is expected to announce the new AI czar in the coming weeks. Meanwhile, Sen. Josh Hawley and Sen. Richard Blumenthal are pushing for the 'Artificial Intelligence Risk Evaluation Act' to limit data centers and protect children from AI-generated content. The administration is also launching an AI-powered website for federal services, signaling a continued push for integration of AI into government operations.