by Carlos Tribino, The Machine
With the elections behind us, I’m not here to cry about or joyfully celebrate the results. Suffice it to say, more than half of the country made the decision, so somebody’s happy. But beyond the pundits’ commentaries, talk show jokes and SNL impersonations, what’s coming for tech companies in how to market themselves in the upcoming Trump 2.0 era?
The re-election of Donald Trump as US President signals a shift in policies that will impact the technology industry and shape the trajectory of how tech companies handle, among other things, their marketing.
A key area of potential change is the regulation, or lack thereof, of artificial intelligence. Trump has shown an interest in rolling back the AI Executive Order established by the previous administration, which currently mandates safety testing and reporting requirements for AI. Deregulation proponents argue that such requirements place a burden on developers, stifling innovation with complex compliance processes. The proposed dismantling of these safeguards is expected to accelerate AI development in the US, allowing companies more freedom in deployment. However, this also brings concerns, particularly in terms of safety and ethics, as AI systems may be released without rigorous testing, raising risks in areas like data privacy, security, safety and automation ethics. As a non-risk-averse and innovation-forward person, I tend to be for less government regulation. But if you read Mustafa Suleyman’s “The Coming Wave” dystopian piece of prose, this is one area where I’d recommend being holier than the Pope. Launching without proper testing can let your AI go rogue with potentially catastrophic consequences.
Trump’s proposed 60% tariff on Chinese imports aims to address trade imbalances and protect American industries from foreign competition. However, tech relies heavily on international supply chains and will likely face considerable challenges as a result. Increased production costs will lead to higher consumer prices on favorites like PS consoles, Galaxys, MacBooks and the likes. You may want to emphasize the quality and value of your products to reassure consumers and retain market demand, highlighting durability, functionality, and innovation and crafting narratives that resonate with consumers’ sense of value.
In terms of market dynamics, the Trump administration is expected to continue its focus on antitrust actions, particularly targeting Big Tech. If you’re not one of them, or your last name is not Musk, this renewed emphasis on antitrust could result in increased regulatory actions aimed at curbing monopolistic behavior, which could, in turn, open up the market to more competition. You could benefit from an environment of greater competition, potentially driving more innovation across the industry. Additionally, with the relaxation of some regulations, tech companies might enjoy greater flexibility in their marketing efforts, allowing for more assertive advertising campaigns and innovative promotional strategies.
Finally, one important fact to address is that the political climate under Trump 2.0 will further polarize consumer bases, meaning that tech companies may need to adjust their brand positioning. This balancing act may involve refined messaging, addressing varying consumer values and expectations in an increasingly divided market. Millennials and Gen Z’ers won’t let you take the easy way out without a say, so plan a well- crafted stance that satisfies most and offends least.
Bottom line, expect both challenges and opportunities. Make the most of the hand you’re dealt, whether you asked for it or not. Pittsburgh tech is great, so no need to make it that way again. Just be mindful of keeping it that way.