Trump tasks federal agencies with drafting a new AI action plan within 180 days

President Donald Trump has signed a sweeping executive order to make the US a global leader in artificial intelligence (AI), revoking regulatory measures enacted by the Biden administration.

The executive order, signed Thursday, tasks federal agencies with drafting an AI action plan within 180 days to strengthen US competitiveness and safeguard national security.

Trump’s directive focuses on fostering innovation by eliminating what he called “harmful government overreach” that hampered AI development under the previous administration.

“This Executive Order establishes the commitment of the United States to sustain and enhance America’s dominance in AI to promote human flourishing, economic competitiveness, and national security,” Trump said in the order.

Repealing Biden-era AI restrictions

The new order reverses a 2023 executive order by then-President Joe Biden that imposed stringent regulations on AI developers. Biden’s policy required companies to conduct safety testing and share results with the federal government before releasing AI systems with potential risks to national security, public health, or the economy.

“The Biden AI Executive Order established unnecessarily burdensome requirements for companies developing and deploying AI that would stifle private sector innovation and threaten American technological leadership,” the executive order stated.

Critics argued the measures stifled innovation and burdened developers with excessive compliance requirements. Trump’s order directs federal agencies to rescind or revise all policies tied to the Biden-era rules.

“Trump’s executive order has the potential to accelerate the development and deployment of AI models by easing compliance burdens on developers,” said Mansi Gupta, senior analyst at Everest Group. “However, this shift introduces significant risks for sensitive industries like healthcare, where responsible AI considerations are crucial.”

Earlier this week, on his first day in office, President Donald Trump revoked a 2023 executive order issued by Joe Biden that imposed stricter oversight on artificial intelligence (AI) development.

AI action plan and streamlined oversight

The executive order calls for the creation of a comprehensive AI Action Plan to guide the US toward sustained global leadership. The plan will be led by top federal science and national security officials and will include efforts to streamline AI oversight, prioritize ethical development, and ensure models remain free from ideological bias.

The order directs “the development of an AI Action Plan to sustain and enhance America’s AI dominance, led by the Assistant to the President for Science & Technology, the White House AI & Crypto Czar, and the National Security Advisor,” the order read.

It also requires the White House Office of Management and Budget (OMB) to issue revised guidelines for federal AI governance to promote agility in private-sector collaboration in order to “ensure that harmful barriers to America’s AI leadership are eliminated.”

Earlier this week, President Trump unveiled a private sector investment plan of up to $500 billion to bolster artificial intelligence infrastructure, aiming to position the US ahead of global competitors in this critical technology sector.

Implications for enterprises

Trump’s pro-AI stance signals reduced regulatory friction for US enterprises. Industry leaders anticipate increased investments in AI research and development, particularly in sectors such as defense, healthcare, and autonomous technologies.

However, the deregulation has sparked concerns over potential ethical lapses and security risks. Without robust oversight, critics warn that biases and malicious uses of AI could proliferate.

“The responsibility for ensuring ethical and accurate AI now shifts from developers to enterprises, which must navigate the challenge of balancing rapid innovation with rigorous risk mitigation measures,” Gupta noted.

Building on a legacy of AI leadership

The order builds on Trump’s 2019 executive order, the first US policy framework on AI, which doubled research funding and established national AI research institutes. Trump also issued federal guidance on AI adoption, making the US an early player in shaping global AI governance.

“This new directive reaffirms America’s commitment to innovation, free speech, and economic growth,” the White House said.

With the new AI policy, the Trump administration aims to recalibrate the balance between fostering innovation and ensuring responsible development. Enterprises are likely to welcome reduced compliance hurdles, but the long-term success of the initiative will depend on industry players’ ability to uphold ethical practices amid the drive for dominance. As the countdown begins for the AI Action Plan, the executive order positions the US at a crossroads where innovation and governance must align to maintain leadership in the AI race.