U.S. National Artificial Intelligence Policy: Real-world Effects on American Manufacturing Networks
The White House has announced the implementation of the "AI Action Plan" on July 23, 2025, accompanied by three executive orders. This ambitious plan aims to boost the development and deployment of artificial intelligence (AI) within the United States, bringing about significant implications for U.S. supply chains.
Data Center Expansion and Energy Infrastructure
A key aspect of the plan is the support for the expansion of AI data centers, including projects like Oracle and OpenAI's 4.5 gigawatts Stargate initiative. This expansion will escalate the demand for construction materials such as steel, concrete, and HVAC systems. However, utilities must plan for increased energy consumption, including grid upgrades, to accommodate these demands.
The electric grid will be modernized to stabilize and incorporate advanced energy sources like geothermal, nuclear fission, and fusion to support large-scale AI computing infrastructure. Federal standards will be developed for secure, attack-resistant AI data centers, led by defense and intelligence agencies, influencing specialized supply chains for security technologies.
Regulatory Modifications
The plan aims to accelerate technology integration across various sectors by rolling back earlier AI oversight. This deregulation requires companies to enhance their internal governance of AI use to manage safety and ethical considerations without relying on federal oversight. The objective is to facilitate rapid infrastructure development and deployment of AI capabilities.
Export Controls and Global Supply Chain Reassessment
Firms involved in AI hardware, software, or system exports will encounter new federal support structures to encourage exports to allied countries. Companies must reassess their supply chain configurations and compliance frameworks to prevent inadvertent technology transfer to adversaries or restricted entities, as export controls are modified and tightened.
Labor and Workforce Considerations
The policy expects AI adoption to yield efficiency gains but also poses medium-term risks of labor displacement. The plan highlights workforce bottlenecks and plans renewed emphasis on skill development and training programs to address talent shortages in AI and related fields.
Implications for Companies
Companies should proactively adjust their operational governance, supply chain risk management, and talent strategies to align with this dynamic environment. Procurement strategies for firms dependent on restricted technologies may need adjustments due to the proposed changes in AI-related export controls. Firms managing cross-border AI deployments involving sensitive data may face increased risk exposure due to the proposed changes in AI-related export controls.
Firms will need to strengthen internal controls related to AI use, especially in safety-critical applications, due to the deregulatory approach of the AI Action Plan. A likely increase in state-by-state regulatory variation is anticipated. No accompanying federal funding or rate structure adjustment mechanisms have been announced.
The plan includes a framework for "regulatory sandboxes," allowing controlled AI deployment under modified compliance requirements. Details about the implementation of "regulatory sandboxes" have not been published, and agency timelines vary. This level of data center development will affect local and regional utility planning, construction materials procurement, and demand on energy infrastructure.
Agencies are directed to review and revise existing rules that may limit AI integration in agriculture, logistics, manufacturing, and healthcare. Greater discretion at the firm level regarding how AI is integrated into planning, warehousing, and transportation is expected. Labor displacement should be factored into medium-term planning models as AI adoption may offer efficiency gains.
The policy shift includes changes to export control frameworks. Data center and energy capacity expansions will affect logistics, site selection, and facility operations due to the proposed infrastructure planning under the AI Action Plan. The objective of the AI Action Plan is to increase domestic capacity for artificial intelligence development and deployment. The policy shift includes adjustments to federal regulations, infrastructure planning, and export control frameworks.
Utilities and site developers may face delays due to permitting and interconnection bottlenecks. Expanded markets for AI-enabled supply chain software and hardware are a potential effect of the proposed export control changes. Firms should monitor for future Department of Labor or Department of Education actions related to workforce support programs.
One core element of the policy is support for increased AI infrastructure, specifically large-scale data centers. The AI Action Plan introduces a deregulatory approach, rolling back earlier oversight requirements across sectors. The executive orders reference workforce retraining in response to AI-related automation, but no specific funding, program design, or federal guidance has been issued.
Announced private-sector partnerships propose 4.5 gigawatts of new data center capacity through the Stargate project. Firms should reassess their international technology supply chains and compliance obligations under evolving export rules due to the global trade exposure under the AI Action Plan. The AI Action Plan proposes adjustments to AI-related export controls for semiconductors and software, potentially broadening international access to U.S.-developed AI products.
For supply chain operations, this means fewer constraints on the use of predictive analytics and automation tools. Companies should be prepared to navigate this evolving landscape, balancing the benefits of AI adoption with the need for responsible and ethical use.
[1] "White House Unveils AI Action Plan with Three Executive Orders," TechCrunch, July 23, 2025. [2] "AI Action Plan Details Revealed: What it Means for U.S. Businesses," Forbes, July 24, 2025. [3] "AI Action Plan: Export Controls and Global Supply Chain Implications," Brookings Institution, July 25, 2025. [4] "AI Action Plan: Labor and Workforce Considerations," MIT Technology Review, July 26, 2025.
- The "AI Action Plan" introduced by the White House aims to increase the development and deployment of artificial intelligence (AI) within the United States, which has significant implications for the global trade, supply chain, and transportation industries.
- Federal standards will be developed for secure and attack-resistant AI data centers, led by defense and intelligence agencies, influencing specialized supply chains for security technologies within the global technology industry.
- Firms involved in AI hardware, software, or system exports will encounter new federal support structures, encouraging exports to allied countries, and necessitating supply chain reassessments to prevent unintentional technology transfer to adversaries or restricted entities.
- The AI Action Plan proposes adjustments to AI-related export controls for semiconductors and software, which may potentially broaden international access to U.S.-developed products in the global trade industry, expanding markets for AI-enabled supply chain software and hardware.
