Treasury chief rejects calls for AI liability protection
Treasury Secretary Scott Bessent said that AI developers should not expect a federal shield from legal responsibility.
During one outlet appearance, Treasury Secretary Scott Bessent warned AI firms that the government will not provide a liability shield, insisting that humans must bear responsibility for AI outcomes. He rejected a key industry demand for federal legal protection. Bessent also defended the Treasury’s recent purchase of billions in long-dated securities, arguing it helped curb a surge in yields.
The interview referenced his recent meetings with Chinese Vice Premier He Lifeng ahead of a summit between President Donald Trump and President Xi Jinping. Additionally, he commented on the Federal Reserve’s latest rate hike and the administration’s stance on monetary policy.
Why it matters
The stance signals that AI companies may face lawsuits without special government immunity, affecting industry risk and regulation.
How this story developed
- Sep 2 Experts say US-China summit will be shaped by Trump’s re-election push and Xi’s party agenda
- Sep 12 The two leaders reaffirmed the need for mutual respect, sensitivity and shared interests while discussing border stability and economic cooperation. They highlighted progress in people-to-people contacts and called for expanded cultural, business and mobility links. Both sides also pledged to address trade imbalances, supply-chain challenges and to seek a fair, mutually acceptable resolution of the boundary issue.
- Sep 12 The leaders met bilaterally during the BRICS summit in New Delhi.
- Sep 13 Modi paused his closing‑session speech to query Xi’s translator after the Chinese president showed discomfort and skipped the gala dinner.
- Sep 20 Beijing warned it could cancel the summit if Washington moves forward with additional Taiwan weapons sales.
- Sep 21 US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in New York to propose an AI safety notification framework for the upcoming Trump-Xi summit.
- Sep 21 Treasury Secretary Scott Bessent called the eight‑hour New York talks “very successful” and presented a proposal for an AI safety notification mechanism.
- Sep 21 Xi scheduled to arrive at Joint Base Andrews and attend a state dinner with leading technology executives.
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