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Image: Douglas Rissing/Getty
Caption: The Trump administration's AI Action Plan emphasizes speed and deregulation.

The Trump administration released its 28-page AI Action Plan this week, outlining a contentious vision for American artificial intelligence dominance built on deregulation, accelerated infrastructure development, and workforce adaptation—with minimal safeguards. Targeting global technological supremacy, the document declares: "America must do more than promote AI within its own borders... [and] drive adoption of American AI systems, computing hardware, and standards throughout the world."

Upskilling as the Sole Shield for Workers

The plan's approach to AI's disruptive workforce impact focuses exclusively on retraining initiatives through collaborations between the Department of Labor, Education, Commerce, and the National Science Foundation. It proposes tax incentives for employers offering AI literacy programs, enabling "tax-free reimbursement for AI-related training."

Crucially absent are any protections against job displacement or safeguards for workers replaced by automation. This unilateral emphasis on adaptation shifts responsibility entirely onto employees, ignoring mounting evidence that upskilling alone won't mitigate widespread disruption. As Microsoft and others aggressively replace roles with AI while funding training, the policy risks accelerating inequality without counterbalances.

Censorship and the 'Woke AI' Crackdown

Reflecting repeated accusations from the administration that models from OpenAI, Google, and Anthropic are politically biased, the plan targets the NIST AI Risk Management Framework (AI RMF)—a key guideline for trustworthy AI development. It mandates removal of "references to misinformation, Diversity, Equity, and Inclusion (DEI), and climate change" from federal standards.

This directive contradicts the administration's simultaneous pledge to ensure AI "objectively reflects truth." In a striking parallel, the newly renamed Center for AI Standards and Innovation (CAISI) will evaluate Chinese models for "alignment with Chinese Communist Party talking points"—highlighting the plan's ideological double standard.

State Regulations Under Federal Siege

Despite industry lobbying for federal preemption of state AI laws, the plan threatens to withhold funding from states enacting 'burdensome' regulations. Vague criteria define problematic rules as those that "hinder the effectiveness" of federal funding, putting legislation like New York's RAISE Act (requiring AI safety and transparency) in jeopardy.

A Consumer Reports spokesperson warned ZDNET: "In the absence of Congressional action, states must be permitted to move forward with rules that protect consumers." The policy creates uncertainty for developers operating across state lines while chilling protective legislation.

Data Center Boom, Environmental Bust

To support initiatives like Microsoft and OpenAI's Project Stargate, the plan vows to "expedite environmental permitting" for data centers by streamlining regulations under the Clean Air Act, Clean Water Act, and other laws. It explicitly rejects "radical climate dogma and bureaucratic red tape," prioritizing compute capacity over ecological impact.

While some, like Ecolab's Emilio Tenuta, suggest efficiency innovations could offset resource demands, current data center energy and water consumption—exacerbated by AI scaling—presents immediate sustainability challenges the policy ignores.

Unwinding Predecessor Protections

The administration continues dismantling Biden-era safeguards, directing the Office of Management and Budget to identify and repeal regulations "that unnecessarily hinder AI development." This includes reviewing FTC investigations into AI products under the previous administration to ensure they don't "unduly burden AI innovation."

Critics argue this could greenlight harmful applications: "This language could potentially be interpreted to give free rein to AI developers to create harmful products without any regard for the consequences," cautioned Consumer Reports, citing risks like deepfake intimate image generators and therapy chatbots.

The Road Ahead

The plan includes minor nods to open-source AI accessibility and relaunches AI.gov as an education portal. However, its core priorities—upskilling without safety nets, censoring federal AI standards, stifling state regulations, and fast-tracking infrastructure—reveal a high-velocity, low-friction approach to AI dominance. For developers and enterprises, it signals reduced compliance burdens but heightened ethical dilemmas. For the workforce and environment, it exchanges guardrails for acceleration. As global rivals advance their own frameworks, America's AI ambitions now hinge on a controversial trade-off: innovation at what cost?

Source: ZDNET