How the 2024 U.S. Election Cycle Could Impact Technology Policy for SMBs

With the 2024 U.S. presidential election underway, candidates have laid out distinct policy proposals that could shape technology, cybersecurity, and energy landscapes in ways that directly impact small and mid-sized businesses (SMBs). Navigating these potential changes proactively can help SMBs remain agile and prepared, regardless of the political outcome. Here’s a look at key policy areas and strategic considerations for SMBs.

Navigating AI Regulation and Data Privacy Policies

As AI continues to advance, regulation around its development and deployment is emerging as a central policy focus. For instance, Kamala Harris advocates for heightened ethical oversight in AI, emphasizing safety testing, risk mitigation, and fair data usage. For SMBs, this could mean additional compliance requirements when deploying AI-driven technologies, as well as potential data privacy rules that necessitate enhanced data protection measures.

On the other hand, Donald Trump’s proposed policies take a more deregulatory approach, aiming to encourage rapid innovation with fewer restrictions. This approach could reduce immediate compliance obligations but may lead to increased scrutiny on the AI industry’s self-regulation.

Key Takeaways for SMBs:

• Assess AI and Data Practices: SMBs using AI and handling customer data should consider conducting internal audits or risk assessments to ensure practices align with potential regulatory changes. This can be a proactive step toward compliance without significant investment.
• Prioritize Data Privacy: With data protection becoming a hot-button issue, robust data privacy measures are increasingly necessary. Consider implementing or upgrading secure storage, encryption, and user consent processes.

Cybersecurity in an Election Year: Heightened Focus and Resources

Election cycles often coincide with increased cyber threats, and SMBs can be unexpectedly affected. Political activities and higher-profile cyber risks make an election year ideal for SMBs to prioritize cybersecurity. Candidates like Harris propose more robust national cybersecurity programs and SMB-specific protections. While Trump's focus is less regulatory, he has historically supported initiatives to boost U.S. cybersecurity against international threats.

Key Takeaways for SMBs:

• Invest in Cybersecurity Measures: Election cycles are an opportune time to reassess cybersecurity readiness. Consider implementing threat detection software, staff training, and regular vulnerability assessments to protect against potential threats.
• Explore Government Resources: Some cybersecurity resources, such as government-backed tools or cybersecurity insurance, may become available. Stay updated on potential grants or programs aimed at enhancing cybersecurity for SMBs.

Trade and Manufacturing Policies Affecting Tech Supply Chains

Trade policies, tariffs, and incentives proposed by candidates could affect SMBs reliant on international supply chains or imported materials. Trump has suggested import tariffs to encourage domestic production, which may impact tech components or other goods that SMBs purchase from abroad. This could lead to higher costs and potential supply chain adjustments. Harris, while focused on trade policies that support American businesses, has been less specific on tariffs, with a stronger emphasis on tech and green technology investments.

Key Takeaways for SMBs:

• Evaluate Supply Chain Exposure: For SMBs that depend on international suppliers, now is a good time to assess supply chain vulnerabilities. Consider diversifying suppliers or seeking domestic alternatives to avoid potential cost increases due to tariffs.
• Adapt to Potential Tariff Adjustments: Develop contingency plans for product sourcing to account for possible policy changes. This proactive planning can help SMBs maintain operational continuity and manage costs effectively.

Energy Policies and Opportunities in Clean Tech

Energy policy plays a pivotal role in technology and manufacturing, impacting everything from operational costs to innovation opportunities. Harris has a strong focus on green technology and clean energy investments, aiming to support SMBs in renewable energy and sustainability efforts. For tech-driven SMBs or those in energy-related industries, these policies could provide valuable incentives to invest in sustainable practices. Trump, however, places more emphasis on expanding fossil fuel production, which may benefit SMBs in traditional energy sectors.

Key Takeaways for SMBs:

• Identify Relevant Incentives: SMBs interested in renewable energy solutions should look out for possible grants, tax credits, or subsidies aimed at encouraging green tech investments.
• Weigh Cost-Saving Options: Energy policies can have operational cost implications. For example, renewable energy incentives may offset some initial technology investment costs for SMBs looking to adopt sustainable practices.

Final Thoughts: Preparing for Policy Changes Amid Election Cycles

The 2024 election cycle presents a unique set of tech-related policy proposals that could impact SMBs in significant ways. By understanding and anticipating these shifts, SMBs can make informed decisions that align with potential regulatory, economic, and technological changes. From strengthening cybersecurity measures to exploring trade and energy incentives, taking proactive steps can help SMBs not only stay compliant but also turn emerging challenges into opportunities.

This election year is an ideal time for SMBs to stay informed, build flexible strategies, and, where possible, advocate for policies that support innovation and growth. By preparing ahead of potential changes, SMBs can position themselves for success, regardless of the political outcome.

References

• The Atlantic on Harris’s AI policy: https://www.theatlantic.com/technology/archive/2024/10/trump-ai-policy/680476/
• Politico on Harris’s record on cybersecurity: https://www.politico.com/newsletters/weekly-cybersecurity/2024/07/22/harris-record-on-cybersecurity-00170147
• Financial Times on Harris’s green technology policies: https://www.ft.com/content/2a5580d6-3a83-467e-a4b0-efc1b1c52759
• Politifact on Trump’s second-term promises: https://www.politifact.com/article/2024/jul/18/a-guide-to-trumps-2nd-term-promises-immigration-ec/
• Reuters on Trump’s energy policy stance: https://www.reuters.com/business/energy/how-do-trump-harris-differ-energy-policy-2024-10-29/

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