On July 23, 2025, the White House released America’s AI Action Plan, a comprehensive strategy designed to secure U.S. global dominance in artificial intelligence (AI). The plan, developed under the direction of President Trump, is structured around three core pillars: accelerating AI innovation, building robust AI infrastructure, and leading in international AI diplomacy and security. The Action Plan emphasizes deregulation, open-source AI, revitalization of domestic semiconductor manufacturing, and the expansion of AI adoption across government and industry. It also outlines a strong stance on export controls, workforce development, and the protection of American values and national security interests. This alert provides an overview of the plan’s structure, its implications for state-level AI regulation, and key takeaways for businesses across sectors. 

Pillar I: Accelerate AI Innovation

• Deregulation and Red Tape Removal: The plan calls for the elimination of federal regulations that hinder AI innovation, including the rescission of previous executive orders that imposed regulatory burdens. Federal funding for AI is to be directed away from states with restrictive AI regulations. 
• Free Speech and American Values: Federal procurement guidelines will require that AI systems used by the government are objective and free from ideological bias. The plan also directs the revision of federal standards to remove references to misinformation, DEI, and climate change. 
• Open-Source and Open-Weight AI: The federal government will foster an environment supportive of open-source AI models, including improving access to large-scale computing for startups and academics, and supporting the development of a healthy financial market for AI compute. 
• AI Adoption and Workforce: Regulatory sandboxes and Centers of Excellence will be established to accelerate AI adoption, especially in critical sectors like healthcare and energy. The plan prioritizes AI skill development, rapid retraining for displaced workers, and the creation of an AI Workforce Research Hub. 
• Next-Generation Manufacturing and Science: Investment will be directed toward foundational manufacturing technologies, automated labs, and the creation of world-class scientific datasets. The plan also prioritizes research into AI interpretability, control, and robustness, and the development of rigorous AI evaluation ecosystems. 
• Government and Defense Adoption: The plan formalizes interagency coordination for AI adoption, creates talent exchange programs, and mandates access to frontier AI tools for federal employees. The Department of Defense will establish virtual proving grounds and prioritize AI-driven automation of workflows. 

Pillar II: Build American AI Infrastructure

• Streamlined Permitting and Security: The plan seeks to expedite permitting for data centers, semiconductor manufacturing, and energy infrastructure, while ensuring these assets are free from adversarial technology. 
• Grid Modernization: A comprehensive strategy will be implemented to stabilize, optimize, and expand the U.S. power grid to meet the demands of AI and data centers, including the prioritization of reliable, dispatchable power sources and new energy technologies. 
• Semiconductor Manufacturing: The plan continues the revitalization of domestic semiconductor manufacturing, focusing on return on investment and the removal of extraneous policy requirements. 
• Workforce Development: A national initiative will identify and train workers for high-priority AI infrastructure roles, expand early career exposure, and increase the use of Registered Apprenticeships. 
• Cybersecurity and Secure-by-Design AI: The plan establishes an AI Information Sharing and Analysis Center, issues guidance on AI-specific vulnerabilities, and promotes secure-by-design AI technologies for critical infrastructure. 
• Incident Response: Federal capacity for AI incident response will be enhanced, with updated playbooks and standards for both public and private sectors. 

Pillar III: Lead in International AI Diplomacy and Security

• Exporting American AI: The U.S. will promote the export of its full AI technology stack to allies and partners, aiming to prevent strategic rivals from gaining technological dependencies. 
• Countering Adversarial Influence: The plan directs U.S. agencies to advocate for innovation-friendly international AI governance and to counter authoritarian influence in global standard-setting bodies. 
• Export Controls and Enforcement: Enhanced enforcement of AI compute and semiconductor export controls will be implemented, including new controls on sub-systems and global alignment with allies. 
• National Security Evaluations: The federal government will lead in evaluating national security risks in frontier AI models, including risks related to cyber, CBRNE, and foreign influence. 
• Biosecurity: New requirements will be imposed on federally funded research institutions to use robust screening for nucleic acid synthesis, with enforcement mechanisms and international cooperation. 

Implications for State AI Regulation

The Action Plan signals a significant shift in the federal approach to state-level AI regulation. Federal agencies are directed to consider a state’s AI regulatory climate when allocating AI-related funding, with the potential to limit funding to states with burdensome or restrictive AI laws. The plan also calls for federal review of state regulations that may interfere with federal agency obligations, particularly in communications and commerce. While the federal government will not preempt prudent state laws, it will actively discourage regulatory approaches that could stifle innovation or create barriers to the effective use of federal funds. States are thus incentivized to adopt innovation-friendly AI policies to remain competitive for federal support and private sector investment. 

Key Takeaways for Businesses

For Technology Companies:

• Deregulation and Open-Source Support: The federal government is actively removing regulatory barriers and supporting open-source AI, creating new opportunities for startups and established tech firms to innovate and scale. 
• Access to Compute and Data: Initiatives to improve access to large-scale compute and high-quality datasets will lower entry barriers for AI development and research. 
• Export Opportunities: The U.S. is prioritizing the export of American AI technologies, opening new international markets for tech companies that align with federal security and standards requirements. 
• Cybersecurity and Compliance: Enhanced focus on secure-by-design AI and incident response will require tech companies to adopt robust security practices and participate in information sharing initiatives. 

For Non-Tech Businesses:

• AI Adoption Incentives: Regulatory sandboxes, Centers of Excellence, and federal support for AI adoption in sectors like healthcare, energy, and manufacturing will facilitate experimentation and integration of AI tools. 
• Workforce Development: Businesses can leverage new federal programs for AI skill development, retraining, and apprenticeships to upskill their workforce and address talent shortages. 
• Regulatory Environment: Companies operating in states with restrictive AI regulations may face challenges accessing federal funding or participating in federally supported AI initiatives.
• Supply Chain and Infrastructure: Investments in domestic semiconductor manufacturing and energy infrastructure will strengthen supply chains and reduce reliance on foreign technology, benefiting a broad range of industries. 

Conclusion

America’s AI Action Plan represents a decisive federal commitment to AI leadership, with far-reaching implications for regulation, innovation, infrastructure, and international competitiveness. Businesses across all sectors should closely monitor developments, assess their regulatory exposure, and position themselves to take advantage of new opportunities and federal support in the rapidly evolving AI landscape.