Trump Administration Backs Legal Liability Over Regulatory Shields for AI Safety

Treasury Secretary Scott Bessent has made clear the Trump administration will not provide legal immunity for AI companies, shifting responsibility for harms onto developers and deployers through existing legal frameworks rather than creating new regulations. In a statement to CNBC in September 2026, Bessent rejected industry lobbying for federal liability shields, saying artificial intelligence laboratories must "take responsibility for themselves" and cannot expect government protection. The position marks a significant departure from traditional regulatory approaches and sets the stage for determining who ultimately bears the costs when AI systems cause harm—a question that will shape the industry's compliance burden and competitive landscape.