Introduction
On July 23, 2025 [1] [2] [7], the Trump administration unveiled a comprehensive AI Action Plan designed to bolster US leadership in artificial intelligence [1]. The plan addresses bureaucratic challenges and ideological biases, proposing over 90 policy actions structured around innovation, infrastructure [1] [2] [3] [5] [6] [7], and international diplomacy and security [1] [7].
Description
On July 23, 2025 [1] [2] [7], the Trump administration released a comprehensive AI Action Plan aimed at advancing US leadership in artificial intelligence while addressing perceived bureaucratic obstacles and ideological biases. This 28-page plan outlines over 90 policy actions intended for implementation within a year [6], structured around three main pillars: innovation [1] [7], infrastructure [1] [2] [3] [5] [6] [7], and international diplomacy and security [1] [7].
The first pillar focuses on empowering the private sector by removing regulatory barriers to AI development. Key initiatives include linking federal funding to state AI regulations [7], encouraging states to adopt cautious regulatory approaches, and establishing regulatory sandboxes or AI Centers of Excellence to facilitate the testing of new AI technologies without regulatory penalties [7]. Additionally, the plan emphasizes workforce development, proposing a research hub to support retraining for workers affected by AI-related job displacement [7].
The second pillar emphasizes building the necessary infrastructure to support AI at scale [1] [3], including efforts to streamline the permitting process for AI data centers and semiconductor facilities [7]. The third pillar aims to promote the adoption of American AI systems and standards globally through diplomatic efforts and security measures, including the establishment of an American AI Exports Program directed by the State Department to enhance the global deployment of US-developed AI technologies.
A significant aspect of the initiative is the introduction of three executive orders, including one addressing federal AI procurement practices, titled “Preventing Woke AI in the Federal Government.” This order establishes standards for the procurement of large language models (LLMs) by federal agencies, mandating adherence to “Unbiased AI Principles.” These principles prioritize historical accuracy, scientific inquiry [4], and objectivity [2] [4], ensuring that LLMs remain ideologically neutral and do not favor any partisan perspectives. Implementation guidance for these standards is expected to be issued by the Office of Management and Budget (OMB) within 120 days.
The Action Plan builds on Executive Order 14179 [2], which aims to eliminate barriers to American leadership in AI while establishing guidelines for developers through government contracting. Proposals for AI exports must detail target regions [2], operational models [2], and compliance with US export laws [2]. Selected proposals will be recognized as priority AI export packages [2], granting access to federal resources such as financial support [2], loans [2] [3] [5] [7], grants [5], and tax incentives [5] [7].
To bolster this initiative [2], the executive order empowers the Economic Diplomacy Action Group to mobilize federal financing tools for priority AI export packages, facilitating resources such as loans [3], investments [2] [3], and political risk insurance [3]. The Secretary of State is tasked with promoting favorable regulatory environments in partner countries and removing trade barriers to enhance the export of American AI technologies [2]. Federal agencies are also directed to identify suitable federal lands for data center development [3], including military installations [3], while considering security implications [3]. An executive order aims to expedite federal permitting for data center infrastructure [3], streamlining the environmental review process to encourage the use of previously developed sites.
While the order primarily focuses on federal procurement and does not impose direct restrictions on private-sector AI use [4], its standards may influence broader market practices, prompting American tech companies to align their development practices with the order’s directives to maintain eligibility for government contracts [4]. Currently, private employers utilizing AI systems for labor and employment decisions are not facing immediate regulatory changes due to this order [4]. However, it is advisable for employers to monitor forthcoming guidance from the OMB [4], as it may impact the development and features of commercial AI products over time [4].
The Office of Management and Budget [1] [2] [4] [7], along with other federal agencies [2], is responsible for issuing guidance to implement the principles of truth-seeking and ideological neutrality in current and future contracts, ensuring that federal procurement practices reflect these standards while maintaining a deregulatory approach that emphasizes American competitiveness in the AI sector. The Plan also directs the National Institute of Standards and Technology (NIST) to revise the AI Risk Management Framework [5], removing references to topics like misinformation and diversity [5], and recommends additional requirements for large language models used by the federal government [5].
Furthermore, the importance of open-source AI is highlighted as a means to establish global standards and promote wider adoption [5], particularly for small and medium-sized businesses [5]. The Plan encourages the US to resist international AI governance standards that could impose additional requirements on American-developed systems and to promote US export controls among allies [5], recognizing the national security risks associated with AI and recommending assessments of both US and foreign AI capabilities [5]. The successful implementation of these executive orders is crucial for operationalizing the AI Action Plan [3], with success dependent on effective execution [3], industry collaboration [1] [3] [7], and international reception [3] [6]. Challenges include defining ideological neutrality in AI systems and potential opposition from environmental groups regarding permitting processes [3]. Critics have raised concerns about the potential abandonment of safeguards that protect national security and public trust [6], warning that dismantling responsible regulations could lead to reckless AI deployment [6], potentially enhancing the competitive position of adversaries like China [6].
Conclusion
The AI Action Plan is poised to significantly impact the US AI landscape by fostering innovation, enhancing infrastructure [2] [6] [7], and strengthening international influence. Its success hinges on effective implementation, collaboration with industry stakeholders, and navigating potential challenges, such as defining ideological neutrality and addressing environmental concerns. The plan’s influence may extend beyond federal procurement, shaping broader market practices and reinforcing US competitiveness in the global AI arena.
References
[1] https://www.akingump.com/en/insights/alerts/white-house-issues-long-awaited-ai-action-plan-and-accompanying-executive-orders
[2] https://www.jdsupra.com/legalnews/client-alert-trump-administration-4151409/
[3] https://www.nelsonmullins.com/insights/blogs/ai-task-force/all/understanding-the-trump-administration-s-three-new-ai-executive-orders
[4] https://www.jdsupra.com/legalnews/trump-administration-releases-ai-action-4214738/
[5] https://www.omm.com/insights/alerts-publications/trump-administration-releases-ai-action-plan-and-issues-executive-orders-to-promote-innovation/
[6] https://www.bbc.com/news/articles/c4g8nxrk207o
[7] https://www.woodsrogers.com/insights/publications/trump-administration-releases-action-plan-and-executive-orders-for-ai-dominance
