New Federal AI Policy Reshapes Compliance Landscape Across Sectors

According to an article by Kenneth R. Davis II & Harlan Mechling of Ballard Spahr, the Trump Administration’s AI Action Plan, announced July 23, 2025, marks a major shift in federal AI policy. Designed to boost American competitiveness and reassert global leadership, the Plan aims to reduce regulatory barriers, encourage open-source development, and direct federal investment toward AI infrastructure and workforce training. 

The article notes the announcement signals a break from prior AI governance models by explicitly tying federal support to state-level regulatory choices, effectively rewarding states that minimize restrictions on AI. This creates uneven access to grants and resources based on location, requiring companies to closely track local policy decisions when planning AI operations.

A strong emphasis on open-source AI introduces both benefits and risks. While businesses may benefit from faster deployment and lower costs, license compliance and code provenance become critical compliance issues. The Plan also promotes infrastructure expansion—data centers, chip manufacturing, and grid modernization—which may speed up development but introduce new sourcing risks as export controls tighten on chip-related technologies. Global operations will need to adjust procurement strategies to avoid compliance pitfalls.

The Plan calls for aggressive investment in AI skills development, encouraging partnerships between employers and educational institutions. Yet, growing demand may intensify competition for talent. Internationally, the Plan pushes US dominance in AI exports while expanding restrictions on chip-making equipment. For companies with global footprints, the authors say this may mean more oversight, higher costs, and shifting trade risks.

The Plan’s reference to synthetic media signals future regulation targeting AI-generated misinformation and impersonation. While details remain uncertain, companies, especially in finance, media, law, and tech, should prepare for new compliance standards. Overall, this AI policy blueprint presents both opportunity and risk. Compliance teams must stay agile, aligning strategy with an evolving regulatory framework that now spans federal, state, and global arenas.