Update Applicable to:	Effective Date
All Covered Employers	See Details Below

What happened?

On July 23, 2025, the Trump Administration released “Winning the Race: America’s AI Action Plan” along with three Executive Orders (EOs), outlining a comprehensive federal strategy to secure U.S. leadership in artificial intelligence (AI).

Overview:

The plan promotes innovation through deregulation and investment, while introducing new compliance expectations and strategic considerations for private employers. The plan outlines over 90 federal actions across three pillars:

1. Accelerating Innovation
2. Building AI Infrastructure
3. Leading in Global AI Diplomacy and Security

A major focus is on helping employers and workers adapt to the rapid changes AI is bringing to the economy. The plan presents both commercial opportunities and regulatory risks.

Highlights for Employers

1. Workforce Development & Training

• The Department of Labor (DOL) will fund rapid retraining for workers displaced by AI.
• Employers may soon offer tax-free reimbursement for AI-related training under new Treasury guidance.
• A new AI Workforce Research Hub will track job impacts and provide data to guide workforce planning.
• Federal funding will prioritize AI skill development through CTE, apprenticeships, and training programs.

2. Building a Skilled Infrastructure Workforce

• Employers will help define and train for high-demand roles like electricians and HVAC techs.
• Support is available for industry-driven training programs, apprenticeships, and early career exposure.

3. AI Adoption in the Workplace

• Employers can join regulatory sandboxes to evaluate AI tools in sectors like healthcare and finance.
• Federal procurement standards will favor bias-free AI systems, setting a precedent for private sector expectations.
• Participation in sandboxes may involve legal and operational risks, including regulatory scrutiny and resource diversion.

4. Workplace Compliance & Risk Management

• Agencies will release tools to help employers evaluate AI systems for bias, reliability, and legal compliance.
• Employers in critical sectors will receive AI-specific cybersecurity guidance.
• Businesses may need to include AI risks in incident response plans, especially given conflicting federal and state-level responsibilities.

5. Incentives & Funding Opportunities

• Federal AI funding may be limited in states with restrictive AI laws.
• Employers can benefit from public-private partnerships, export support, and streamlined permitting for AI-related projects.
• The plan promotes open-source AI models, lowering barriers for startups and SMBs.

Additional Information:

Executive Orders of Note

1. Accelerating Federal Permitting of Data Center Infrastructure: Expedites environmental reviews and authorizes use of federal lands for AI infrastructure.

2. Promoting the Export of the American Technology Stack: Mobilizes federal financing tools to support U.S. AI exports and invites private-sector proposals.

3. Preventing Woke AI in the Federal Government: Requires federal agencies to procure only “unbiased” AI systems, reinforcing the objectivity standard in procurement.

Strategic Considerations

• Cybersecurity Coordination: EO 14239 (“Achieving Efficiency Through State and Local Preparedness”) shifts some incident response duties to state and local governments, complicating coordination for multi-state employers.

• Evolving Standards: Voluntary standards for AI evaluation and transparency may become binding requirements, especially for federal contractors or firms in regulated sectors (and even employers).

• Prepare for Workforce Disruption: Invest in upskilling, apprenticeships, and AI literacy to stay competitive.

• Monitor Federal Rulemaking: Stay ahead of evolving compliance expectations and procurement standards.

• Engage in Policy Development: Participate in RFIs (Request for Information), pilot programs, and public-private partnerships to shape future AI governance.

• Balance Innovation with Risk: Embrace AI opportunities while safeguarding against legal, reputational, and operational risks.

Source References

• DOL Press Release – Winning the Race: America’s AI Action Plan
• Whitehouse Press Release – July 23

Resources

• US AI Homepage and Resources

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