U.S. President Donald Trump is set to unveil his long-awaited AI Action Plan today at a Washington, D.C. event, marking his first major policy announcement on AI since returning to office in January. The plan is expected to highlight the administration’s roadmap for accelerating AI development, reshaping regulatory frameworks, and strengthening America’s position in the global tech race.
Here’s what’s known so far about Trump’s AI strategy—and the concerns it’s already generating.
A Shift from Regulation to Deregulation
The Trump administration’s AI roadmap represents a sharp break from former President Biden’s approach. Within days of taking office, Trump repealed Biden’s executive order on AI, which had focused on safety and security reporting, bias mitigation, and risk assessments. Trump and his advisers argue that those measures created unnecessary burdens that stifled innovation and slowed the U.S. tech sector’s momentum.
Instead, Trump’s approach favors loosening restrictions. The new AI Action Plan reportedly includes steps to ease permitting rules for data center development, expand chip exports, and block states from enforcing AI regulations deemed too restrictive. These changes aim to reduce friction for American tech companies, particularly those developing large-scale AI models and infrastructure.
AI Infrastructure Expansion and Energy Demands
One of the key pillars of Trump’s plan is focused on infrastructure. The administration aims to overhaul permitting systems to speed up the construction of data centers, a critical component for training and deploying AI models.
Trump is also expected to announce steps to modernize the electrical grid and encourage new energy sources to meet the surging demand driven by AI workloads. However, this part of the plan has sparked criticism from environmental groups and local communities concerned about the strain data centers place on energy and water resources.
The energy-intensive nature of AI has already led to predictions of power shortages by the end of the decade unless supply can be significantly ramped up.
Advancing Innovation by Blocking State-Level AI Laws
On the innovation front, Trump’s AI Action Plan may include measures to preempt state-level AI regulations, a move designed to protect developers from what the administration sees as a patchwork of burdensome rules. While such preemption could streamline development, it may also hinder efforts to impose meaningful safety or transparency standards at the state level.
Some industry voices support this deregulated approach, while others—including advocacy groups—warn that unchecked AI development may lead to unforeseen consequences.
Global Influence and Export Strategy
The final pillar of the plan revolves around global competitiveness. The Trump administration intends to aggressively promote the adoption of American AI technologies abroad. This includes facilitating exports of AI chips and models, as well as full-stack deployment packages developed by U.S. firms.
This export-first strategy contrasts with Biden-era restrictions on the global distribution of U.S. semiconductors. Trump has already relaxed these limitations, including deals with the UAE to broaden their access to advanced AI chips previously restricted due to concerns over potential Chinese influence.
Federal officials remain wary of rising competition from Chinese labs like DeepSeek and Qwen, which have grown into credible rivals to American developers like OpenAI and Google. Trump’s plan explicitly aims to make U.S. AI the global standard.
Executive Orders Target “Woke” AI Models
Among the most controversial elements of the new strategy is an executive order aimed at what the administration labels as “woke AI.” The order, according to sources, would mandate that federal AI contractors—including companies like OpenAI, Anthropic, Google, and Amazon—ensure their AI models exhibit politically neutral behavior.
Critics argue the measure raises First Amendment concerns, particularly around how neutrality is defined and who decides what constitutes bias. Legal scholars suggest that such a directive may face constitutional challenges as a form of content-based discrimination.
Nonetheless, tech companies may be reluctant to challenge the order openly, especially as they vie for lucrative federal contracts. Executives are more likely to treat the policy as a starting point for negotiation rather than an immovable directive.
Public Anxiety About AI Job Displacement
While Trump’s AI strategy emphasizes growth and deregulation, many Americans remain uneasy about what the rise of AI means for the workforce. According to a recent Pew Research survey, 52% of respondents said they were worried about AI’s impact on jobs, while 33% felt overwhelmed.
Experts like Bharat Ramamurti, a former Biden administration economic official, argue that the economic effects of AI are being underplayed. He notes that current projections estimate AI could replace 10 to 15 million American jobs within the next decade.
Though Trump has touted job-creating AI hubs—such as a recently announced initiative in Pennsylvania—critics question whether these jobs will match the quantity and quality of those potentially displaced by automation and machine learning.
Big Tech’s Policy Wishlist
During the public comment period for the AI Action Plan earlier this year, major tech players submitted their policy priorities. Companies like OpenAI, Meta, Google, and Amazon pushed for legal protections to train AI models on copyrighted materials under fair use, a move that could significantly reduce legal risks for them as they face ongoing lawsuits.
Meta also urged the administration to support open-source AI models, such as its LLaMA series, while others warned that open-access AI could pose security risks. These disagreements underscore the broader tension between openness and control within the AI ecosystem.
Meanwhile, advocacy organizations called for more investment in non-commercial AI research, arguing that universities and public institutions have historically driven critical innovation. However, with federal funding for academic institutions declining, such efforts face increasing challenges.
The People’s AI Action Plan Pushback
A coalition of more than 90 nonprofit groups released their own “People’s AI Action Plan” this week, presenting a policy agenda focused on public interest, transparency, and ethical AI development. The group accused the Trump administration of prioritizing corporate interests and failing to safeguard workers, consumers, and democratic values.
“We can’t let Big Tech and Big Oil lobbyists write the rules for AI and our economy at the expense of our freedom,” the coalition said in a public statement.
Their alternative plan calls for independent oversight, mandatory safety evaluations, and funding for AI applications in areas like education, healthcare, and sustainability.
A Defining Moment in the U.S.–China AI Race
Beyond domestic policy, the AI Action Plan is also a tool in the broader geopolitical contest between the U.S. and China. Trump is framing AI development as a matter of national security and economic supremacy, stressing the need for the U.S. to maintain a competitive edge.
Administration insiders, including Secretary of State Marco Rubio and National Economic Adviser Kevin Hassett, will reportedly appear at today’s “Winning the AI Race” summit. The event is co-hosted by AI czar David Sacks and tech influencers from the “All-In” podcast, signaling the tight connection between the Trump administration and Silicon Valley venture capital circles.
The administration is also expected to direct the FCC to evaluate whether state laws restrict federal AI objectives, and may restrict federal funding to states enforcing stringent AI regulations.
What Comes Next?
As Trump prepares to sign executive orders aligned with the plan, industry watchers are closely monitoring how these policies will be implemented—and challenged.
The Trump AI Action Plan marks a clear turning point in U.S. technology policy. It embraces speed over caution, deregulation over oversight, and competition over collaboration. Whether this approach ultimately benefits or destabilizes the AI sector—and the people it affects—remains an open question.
In the coming months, the administration is expected to roll out further actions to support data center growth, chip manufacturing, and AI research. But for now, the battle lines are being drawn between those prioritizing innovation and those demanding accountability.
