AI is becoming increasingly unpopular

Less than four years after the release of ChatGPT, the AI rally appears unstoppable across financial markets. However, AI is facing growing unpopularity, which could prove to be the primary headwind to its development.

According to a YouGov poll, 70% of Americans believe that AI is advancing too quickly.

AI is fueling fears of mass job destruction and rising electricity prices, while raising questions about its environmental impact. Indeed, several major corporations have already announced thousands of layoffs, justified by the deployment of AI tools. Furthermore, data centers require massive amounts of electricity and monopolize land and water resources.

This has resulted in opposition from local communities towards the building of data centers. According to Heatmap Pro data, a record number of projects were canceled in Q1 in the face of such opposition.

Since the launch of ChatGPT in late 2022, AI development has generally enjoyed support in Washington. This is because companies are investing hundreds of billions of dollars, which bolsters economic activity. Last year, AI-related Capex was a major contributor to growth. The other strategic stake in AI development is that China is also investing heavily in the field. The United States must win this race to remain the world's leading power.

However, if we enter a phase where companies begin to deploy AI, automate processes and ultimately lay off staff, politicians will find it much harder to position themselves as AI proponents.

Donald Trump was re-elected in 2024 thanks to a broad coalition that included big tech CEOs. In the early months of his term, his administration adopted a very pro-AI approach under the leadership of David Sacks, the "AI and Crypto Czar."

In December, Donald Trump signed an executive order aimed at centralizing AI regulation at the federal level, thereby preventing the 50 US states from regulating it individually. But the "light-touch" regulatory approach intended to let the industry flourish has reached its limits.

In late February, during the State of the Union address, Donald Trump announced a "Ratepayer Protection Pact" aimed at protecting consumers from rising electricity prices. "We are telling big tech companies that they have an obligation to provide for their own energy needs." A few days later, he convened corporate executives at the White House to discuss this pact.

More recently, new AI models such as Anthropic's Mythos are pushing the White House towards stricter oversight. According to Axios, over 60 of President Trump's allies are urging him to test and approve the most powerful AI models before they are released to the public.