On July 23, 2025, the White House released America’s AI Action Plan, a comprehensive national strategy designed to strengthen the United States’ position in artificial intelligence through investment in innovation, infrastructure, and international diplomacy and security. The plan, issued in response to Executive Order 14179, reflects a pro-innovation approach to AI policy—one that aims to accelerate adoption while mitigating security and integrity risks through targeted government action, collaboration with the private sector, and modernization of key systems.

The plan does not introduce new laws or regulatory mandates. Instead, it focuses on leveraging existing authorities, enhancing voluntary standards, and enabling responsible AI development and deployment at scale.

Pillar 1: Driving AI Innovation

The first pillar emphasizes enabling cutting-edge research, workforce readiness, and private-sector growth. Federal agencies are directed to align funding, tax guidance, and educational programs to support AI upskilling and integration across industries.

Key actions include:

  • Removing “red tape” and onerous regulation, calling for suggestions to remove regulatory barriers to innovation, and for federal funding to be directed away from states with “burdensome AI regulations.”
  • Treasury guidance to allow tax-free reimbursement of AI training expenses under IRC §132.
  • Coordination among agencies like the Department of Labor, NSF, and Department of Education to embed AI literacy into training and credentialing programs.
  • Confronting the growing threat of synthetic media, including deepfakes and falsified evidence. Federal agencies—particularly the Department of Justice—are tasked with developing technologies to detect AI-generated content and preserve the integrity of judicial and administrative proceedings.
  • Launching a new AI Workforce Research Hub to study the impact of AI on economic productivity and labor markets.
  • The Department of Defense will create an AI and Autonomous Systems Virtual Proving Ground to simulate real-world scenarios and ensure readiness and safety.
  • Agencies will increase investment in quality datasets, standards, and measurement science to support reliable, scalable AI.

Notably, the plan does not invoke terms such as “discrimination” or “bias” in employment or algorithmic decision-making contexts—an omission that may reflect the administration’s focus on economic opportunity and innovation over regulatory constraint. However, bias is referenced in the context of safeguarding free speech and preventing censorship in AI-generated content.

Pillar 2: Building Infrastructure for the AI Age

This second pillar recognizes that AI requires new infrastructure—digital, physical, and institutional—to thrive safely and at scale. The plan outlines federal efforts to modernize government systems, support critical infrastructure security, and establish testing environments for AI tools.

Highlights include:

  • A commitment to “security by design” principles, encouraging developers to build cybersecurity, privacy, and safety into AI products from the ground up.
  • Ensuring the nation has the workforce ready to build, operate, and maintain an infrastructure that can support America’s AI future – with jobs such as electricians and advanced HVAC technicians.

These initiatives aim to reinforce public trust while enabling widespread AI adoption in sectors such as transportation, energy, defense, and public services.

Pillar 3: Advancing International Diplomacy and Security

The third pillar focuses on global leadership, international coordination, and national security. It underscores the need to shape global AI norms and standards in line with democratic values, while protecting U.S. interests against adversarial use of AI.

Strategic priorities include:

  • Strengthening cross-border partnerships to promote responsible AI development and interoperability.
  • Addressing threats from foreign actors who may use AI for disinformation, cyberattacks, or military advantage.
  • Encouraging export controls, intelligence coordination, and diplomatic engagement around emerging AI technologies.

This pillar reflects the administration’s intent to ensure that AI supports—not undermines—international stability, democratic resilience, and national defense.

Legal and Strategic Takeaways

  • Policy Through Enablement: The plan reflects a shift away from regulation and toward enabling frameworks—creating opportunities for private-sector leadership in shaping standards, tools, and data ecosystems.
  • Synthetic Media Enforcement: With federal agencies actively addressing deepfakes and AI-generated content, litigation and evidentiary practices are likely to evolve. Legal practitioners should monitor developments in forensic tools and admissibility standards.
  • Cybersecurity Imperatives: The emphasis on “security by design” may influence future procurement requirements, vendor due diligence, and contractual obligations—especially for organizations working with or for the government.

The AI Action Plan presents a clear vision of the United States as a global AI leader—by empowering innovators, modernizing infrastructure, and projecting democratic values abroad. While the plan avoids broad regulatory mandates, it signals rising expectations around safety, authenticity, and international coordination.

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Photo of Joseph J. Lazzarotti Joseph J. Lazzarotti

Joseph J. Lazzarotti is a principal in the Tampa, Florida, office of Jackson Lewis P.C. He founded and currently co-leads the firm’s Privacy, Data and Cybersecurity practice group, edits the firm’s Privacy Blog, and is a Certified Information Privacy Professional (CIPP) with the…

Joseph J. Lazzarotti is a principal in the Tampa, Florida, office of Jackson Lewis P.C. He founded and currently co-leads the firm’s Privacy, Data and Cybersecurity practice group, edits the firm’s Privacy Blog, and is a Certified Information Privacy Professional (CIPP) with the International Association of Privacy Professionals. Trained as an employee benefits lawyer, focused on compliance, Joe also is a member of the firm’s Employee Benefits practice group.

In short, his practice focuses on the matrix of laws governing the privacy, security, and management of data, as well as the impact and regulation of social media. He also counsels companies on compliance, fiduciary, taxation, and administrative matters with respect to employee benefit plans.

Photo of Eric J. Felsberg Eric J. Felsberg

Eric J. Felsberg is a principal in the Long Island, New York office of Jackson Lewis P.C. Eric is the leader of the firm’s AI Governance and Bias Testing and Pre-Employment Assessments subgroups, as well as the Technology industry group. An early adopter…

Eric J. Felsberg is a principal in the Long Island, New York office of Jackson Lewis P.C. Eric is the leader of the firm’s AI Governance and Bias Testing and Pre-Employment Assessments subgroups, as well as the Technology industry group. An early adopter, Eric has long understood the intersection of law and technology and the influence artificial intelligence has on employers today and will have on the workforce of the future.

Recognized as a leading voice in the industry, Eric monitors laws, regulations and trends, providing practical advice and answers to emerging workplace issues before his clients even know to ask the questions. He partners with clients to develop AI governance models, and provides advice and counsel on AI use policies, ethics and transparency issues related to AI products, systems and services. Eric leverages his considerable knowledge of the technology and AI industries to create meaningful partnerships with developers and distributors of AI models and tools and owners of content and data used to train AI applications for the benefit of his clients. He delivers user-friendly counsel and training to employers on everyday employment and compliance issues arising from federal, state and local regulations.