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2024 US elections: Comparing key industry impacts of Democratic and Republican presidencies

Disclaimer: The following report neither endorses any US presidential candidate nor condemns or condones any policies thereof

By
Janine Manishka Gunasekara
on
November 4, 2024
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Common ground and contrasting visions: Policy agreements and differences

The 2024 US presidential race offers divergent paths for America's future, particularly in energy, environment, and technology. Republicans advocate for traditional energy sources, reduced environmental regulations, and rapid AI advancement with minimal oversight. Meanwhile, Democrats champion renewable energy, stricter environmental protections, and a cautious, ethics-driven approach to AI development. Both parties, however, align on the need to strengthen national security through military modernization and space exploration.

These divergent approaches will significantly impact industries such as Current-gen Renewables; Alternative Energy; Carbon Capture, Utilization, & Storage (CCUS); Oil & Gas Tech; EV Economy; and Generative AI (GenAI) Infrastructure.

A critical, often overlooked factor in this debate is the massive energy demand created by AI development. As highlighted by recent announcements by tech giants to invest in nuclear energy for data centers and AI power demands, the race for AI supremacy is intrinsically linked to energy policy. The next administration will have to balance the urgent need for increased power generation with environmental concerns and national security implications.

The following table compares each party's approach to key policy agendas, their visions for these areas, and the initiatives they propose.

Policy agreements and differences between the Republican and Democratic party

Industry impacts at a glance: Republican vs. Democratic policy outcomes on key industries

The table below compares the impact of Republican and Democratic policies on emerging industries.

The starkest policy divide appears in the Energy & Climate Change sector. Republican policies would likely hinder industries such as Current-gen Renewables, Alternative Energy, and CCUS while benefiting Oil & Gas Tech. This is due to Republican efforts to reduce restrictions on fossil fuels and roll back sustainability mandates. Conversely, Democrats aim to transition the US toward clean energy, leading to the opposite impact on these industries.

A similar divergence exists in the IT sector. Republicans favor deregulating AI, benefiting industries like Foundation Models and GenAI Applications by enabling rapid deployment. In contrast, Democratic policies to regulate AI development could slow growth in these sectors.

(For more details please refer to our Insights on the impact of Republican and Democratic presidencies on the US economy).

Republican vs. Democratic policy outcomes on key industries

Conclusion: A country at a crossroads

From sustainability to clean energy, oil production to AI, the Republican and Democratic parties are charting very different courses for the future.

The real impact will depend not only on who wins the presidency but also on the composition of Congress and the feasibility of implementing these proposed policies. Furthermore, broader influences—such as market forces, global events, and ongoing technological advancements—will continue to shape these industries, regardless of the election’s outcome.

As the US faces these new challenges and opportunities, the question remains—which road will the nation choose?

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Janine Manishka Gunasekara
Content Marketing Lead, SPEEDA Edge

Janine is a Content Marketing Lead for SPEEDA Edge, an emerging industry intelligence platform.