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America launches controversial AI Action Plan favoring rapid growth over regulation

By DigiconAsia Editors | Monday, July 28, 2025, 4:23 PM Asia/Singapore

America launches controversial AI Action Plan favoring rapid growth over regulation

The federal AI strategy prioritizes accelerated development, streamlined rules, and national security, drawing controversy from environmental and risk concerns.

The plan prioritizes rapid expansion of AI infrastructure, aiming to boost America’s competitiveness against China, but possibly at the expense of AI-risk mitigation.

Central to the strategy is a push to accelerate the construction of data centers and related facilities, even if it means relaxing environmental regulations and utilizing federal land for tech development.

Billions in taxpayer funding are earmarked to support these projects, with assurances that job creation and partnership with local governments will follow. Deregulation figures prominently, as the plan seeks to streamline permitting, sidestep bureaucratic obstacles, and potentially limit states’ powers to impose their own AI regulations. The latter is linked to the premise that federal funding for states could be tied to their compliance with federal AI policies.

Efforts are also underway to ensure reliable energy supplies for the growing network of data centers, even at the expense of critical grid periods or established environmental safeguards, which has already sparked criticism in some communities affected by pollution.

National security remains a cornerstone. The plan directs agencies such as the Department of Defense to deepen AI integration, secure technological advantages, and reinforce the exclusion of Chinese hardware and software from American supply chains. Federal contracts worth up to US$200m each have already been awarded to major AI firms to develop defense applications.

In stark contrast to his predecessor’s approach, Trump couples the plan with rhetorical attacks on perceived “biased” AI, removing references to misinformation and diversity initiatives from official risk frameworks. Federal procurement will favor firms whose AI models are deemed neutral, although the administration offers little clarity on how neutrality will be objectively measured.

Meanwhile, the plan supports open-source AI, and pledges to expand access for startups and researchers. Although some provisions address AI safety and cybersecurity, the overall emphasis is on removing regulatory barriers to rapid development, positioning American industry to outpace international rivals.

Experts are already citing potential constitutional challenges to the AI Action plan.

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