Bessent May Add AI Czar Duties to Treasury Role, Raising Conflict Questions

A source aware of the discussions told Reuters that US Treasury Secretary Scott Bessent may also become President Donald Trump’s artificial intelligence (AI) czar.

A second source noted that no final decision has been reached, and the Treasury Department has not commented publicly. The rumors emerge as Trump has played down demands for tighter AI oversight.

Two Hats for the Treasury Chief

On Saturday, Trump stated he would create an AI Force and appoint an AI czar, following the model of the Space Force. He provided no specifics on either plan.

Bessent is already at the heart of Washington’s AI diplomacy. On Sunday, he conducted AI risk discussions with China in New York, before Trump’s meeting with Xi Jinping this week. The US put forward an AI safety notification system and a US-China AI dialogue, emphasizing national security.

The Treasury secretary already has many responsibilities. Trump has previously tapped Bessent to lead a revamp of US trade policy and negotiate a critical minerals agreement for Ukraine. He also temporarily led the Consumer Financial Protection Bureau (CFPB). Currently, he is the acting commissioner of the Internal Revenue Service (IRS). Separately, his department is driving efforts to isolate Iran via sanctions.

A Dedicated Treasury Chief Needed

In the meantime, Bessent's primary responsibilities have become more challenging. Last week, the 10-year Treasury yield reached a 19-year peak around 5.04% before falling back to approximately 4.95%. HSBC now forecasts a lower 10-year yield near 4.65% by the end of the year. Other analysts predict it could rise to 5.3%, and some warn of a 6% risk later on.

This volatility increases pressure at a time when Trump is considering giving Bessent a second role. This month, traders have already accounted for large shifts in Federal Reserve rate expectations. Any indication that Treasury leadership is overextended could influence market interpretation of the department's future actions.

Bessent's well-known doubts about AI regulation will probably affect the scope of the next czar's duties. It remains uncertain if Bessent can handle bond markets, sanctions implementation, and AI policy simultaneously. The next few weeks should provide clarity.