July 25, 2025 • Policy
The Trump administration has unveiled its most comprehensive artificial intelligence strategy to date, releasing a 25-page AI Action Plan alongside three executive orders that fundamentally reshape how the United States approaches AI development and regulation. Announced on July 23, 2025, this initiative represents a dramatic shift toward deregulation and federal centralization, with the explicit goal of achieving what President Trump calls 'global AI dominance.'
The plan emerges from Executive Order 14179, titled 'Removing Barriers to American Leadership in Artificial Intelligence,' which called for eliminating regulatory obstacles that impede AI innovation. The administration developed this comprehensive strategy after soliciting extensive public input, receiving over 10,000 comments from academia, industry groups, private sector organizations, and government entities.
The Trump administration's approach marks a clear departure from previous regulatory frameworks, emphasizing the removal of what it characterizes as burdensome restrictions on AI development. The Action Plan specifically targets existing safety requirements and oversight mechanisms that the administration views as impediments to American competitiveness in the global AI race.
Central to this deregulatory philosophy is the administration's commitment to promoting what it terms 'ideologically neutral AI systems.' The plan includes directives to revise the National Institute of Standards and Technology's AI Risk Management Framework, specifically removing references to Diversity, Equity, and Inclusion concepts that the administration considers politically motivated rather than technically necessary.
One of the three accompanying executive orders, titled 'Preventing Woke AI in the Federal Government,' focuses specifically on federal AI procurement practices. While broadly framed in its title, this order has a relatively narrow immediate scope, concentrating on ensuring that AI systems purchased by federal agencies adhere to the administration's vision of neutral, non-political artificial intelligence.
Perhaps the most significant aspect of the Action Plan is its strong push toward federal preemption of state and local AI regulations. The administration has signaled a clear preference for centralized, uniform federal regulation over the growing patchwork of state-level AI laws that have emerged across the country.
President Trump emphasized this priority in his remarks announcing the plan, calling for 'a common sense federal standard that supersedes all states.' He highlighted the operational challenges faced by companies operating under multiple state jurisdictions, explaining that 'if you are operating under 50 different sets of state laws, the most restrictive state of all will be the one that rules.'
This federal approach addresses growing industry concerns about regulatory fragmentation. Companies developing AI systems have expressed frustration with navigating varying requirements across different states, with some jurisdictions implementing more restrictive measures than others. The administration argues that this patchwork creates inefficiencies and potentially stifles innovation by forcing companies to design their systems to meet the most stringent requirements.
The push for federal preemption represents a continuation of efforts that began earlier in 2025. While the 'One Big Beautiful Bill Act' originally included provisions for a 10-year moratorium on state and local AI regulation, those provisions were ultimately not included in the final legislation. However, the concept of federal preemption remains a live issue, and the Action Plan signals renewed commitment to this approach.
The Action Plan places significant emphasis on infrastructure development and international competitiveness. The administration has connected this strategy to major investment initiatives, including the proposed Stargate: US Launches $500B AI Infrastructure Initiative, a joint venture involving OpenAI, Oracle, and SoftBank to build data centers across Texas.
The plan also establishes the President's Council of Advisors on Science and Technology, a 24-member group tasked with guiding US leadership in artificial intelligence, quantum computing, autonomous driving, drone technology, and biotechnology. This council represents the administration's effort to bring together leading experts from industry and academia to inform policy decisions and strategic direction.
International competition features prominently throughout the document, with particular attention to challenges from Chinese AI companies. The plan references recent disruptions caused by companies like DeepSeek, which demonstrated that cutting-edge AI capabilities could be achieved with significantly fewer resources than previously thought. The administration views such developments as validation of its approach, arguing that reduced regulatory burden will enable American companies to compete more effectively.
The AI industry's response to the Action Plan has been mixed, reflecting the complex balance between innovation and safety considerations. While many companies welcome the prospect of reduced regulatory compliance costs and clearer federal standards, others express concern about the potential elimination of safety oversight mechanisms.
Technology leaders have generally praised the administration's focus on competitiveness and infrastructure investment. The emphasis on uniform federal standards addresses longstanding industry complaints about regulatory fragmentation and compliance complexity. Companies operating across multiple states have particularly welcomed the prospect of dealing with a single federal framework rather than navigating dozens of different state requirements.
However, some industry observers worry about the implications of reducing safety oversight. AI Safety Index 2025: How Major AI Companies Stack Up research has highlighted ongoing challenges in ensuring responsible AI development, with experts arguing that some level of oversight remains necessary to prevent potential harms.
The plan's emphasis on removing 'ideological bias' from AI systems has also generated debate within the tech community. While supporters argue that this promotes technical objectivity, critics contend that all AI systems inevitably reflect the values and perspectives of their creators, making true neutrality impossible to achieve.
The Action Plan establishes an ambitious timeline for implementation, with key milestones extending over the next six months. Federal agencies have been tasked with developing specific AI strategies within this timeframe, while the newly established governance structures must become operational by early 2026.
The administration has indicated that federal preemption efforts will begin with guidance to federal agencies regarding their AI procurement and development practices. This will be followed by broader regulatory proposals aimed at establishing uniform national standards that would supersede existing state and local requirements.
Implementation will require significant coordination across multiple federal agencies, including the Department of Commerce, the Department of Defense, and the Department of Homeland Security. Each agency must develop specific implementation plans that align with the overall strategic objectives while addressing their unique operational requirements.
The Action Plan's international dimensions extend beyond mere competitiveness, encompassing broader questions of global AI governance and standards-setting. The administration has positioned the United States as a leader in promoting what it characterizes as democratic, market-driven approaches to AI development, contrasting this with more state-directed models employed by other nations.
The plan includes provisions for expanded international cooperation on AI research and development, while simultaneously emphasizing the need to protect American technological advantages. This dual approach reflects the complex challenges of promoting global collaboration while maintaining competitive edges in critical technologies.
Trade and technology transfer policies feature prominently in the implementation framework, with new guidelines for managing AI-related exports and imports. The administration has indicated that these policies will balance the benefits of international collaboration with national security considerations.
Economic analysis suggests that the Action Plan could significantly impact AI market dynamics, particularly for companies operating in highly regulated sectors. The reduction in compliance costs could enable smaller companies and startups to compete more effectively with established technology giants, potentially fostering greater innovation and market competition.
The emphasis on federal standardization may also create new market opportunities for companies specializing in AI compliance and governance solutions. As organizations adapt to unified federal requirements, demand for consulting services and compliance technologies is expected to grow substantially.
Investment patterns are likely to shift as well, with venture capital and private equity firms potentially directing more resources toward AI companies that can benefit from the reduced regulatory environment. The administration's infrastructure investments may also create new opportunities in data center development, cloud computing, and related technologies.
The success of the Action Plan will ultimately depend on effective implementation and industry adoption. Key challenges include ensuring that reduced oversight does not compromise safety and security, managing the transition from state-level to federal regulation, and maintaining public trust in AI systems developed under the new framework.
The administration faces the complex task of balancing multiple competing objectives: promoting innovation while ensuring safety, encouraging competition while maintaining security, and leading globally while cooperating internationally. The effectiveness of the Action Plan in achieving these goals will likely become clearer over the coming months as implementation proceeds.
For the AI industry, the Action Plan represents both unprecedented opportunity and significant responsibility. Companies will need to navigate the new regulatory landscape while demonstrating that reduced oversight does not compromise their commitment to developing beneficial and safe AI systems. The global AI community will be watching closely to see whether the American model of AI governance proves successful in achieving its ambitious objectives.