Objectives include the acceleration of the use and procurement of AI within the federal system, embracing AI governance as an enabler of innovation, and increasing investment in AI infrastructure to position the US as a global AI leader.
Topics discussed
- New executive order calling for an AI action plan
- New OMB memoranda target federal AI use and procurement
- AI infrastructure emerging as priority
- States step up on AI policymaking
- Managing risks to national security and competition from DeepSeek
Content related to this discussion:
- DOJ's Data Export Rule Is In Force April 8: What You Need to Do
- Trump 2.0 Tech Policy Rundown: Breakneck Pace Continues
Transcript
The following transcript of this discussion was edited for clarity.
Kaitlin Betancourt: Hello, everyone. This is New Directions, a series of discussions about the Trump administration's first-quarter actions and what to watch. I'm Kaitlin Betancourt. I'm a partner in Goodwin's Data, Privacy, and Cybersecurity practice, and I'm joined by Omer Tene, who is also a partner in our Data, Privacy, and Cybersecurity practice and is a partner in our Technology practice.
Omer, why don't you kick us off with some discussion about initial actions taken by the Trump administration? We are specifically focusing this discussion on AI.
Omer Tene: Great. Thank you, Kaitlin. A pleasure being here. We are almost 100 days into this new administration, but let's rewind for a moment.
On the campaign trail, Trump promised that he would repeal Biden's executive order on AI safety, which also focused on civil rights in the AI context. Indeed, he did that on day one of his presidency, and on the fourth day — January 23 — the Trump administration actually issued its own executive order titled "Removing Barriers to American Leadership in Artificial Intelligence."
You can see the pivot in policy already in the title, but what it actually means on the ground is still developing. Part of it is going to be based on a request for information [RFI] that the White House's Office of Science and Technology Policy issued calling for information, opinions, and papers on the development of a national AI action plan.
This closed a few weeks ago, in mid-March, and thousands of companies, think tanks, and individuals submitted comments, which the administration is working through right now.
Stepping back for a moment, federal agencies have abruptly departed from the previous leadership priorities in terms of AI policy. We see this really across the board at the Federal Trade Commission [FTC], the Consumer Financial Protection Bureau, the US Equal Employment Opportunity Commission, the US Department of Health and Human Services, and the Office for Civil Rights. For example, the FTC's new chair said that the FTC should not be an AI regulator, although I think we'll see some focus on competition policy in the AI space.
Returning to the executive order specifically: Kaitlin, just last week, the Office of Management and Budget [OMB] started implementing it. What is it looking like?
Kaitlin Betancourt: That's right. Thanks, Omer. Just last week, the OMB issued memoranda with a clear focus on AI innovation and procurement with respect to federal agencies.
The first memorandum directs federal agencies on the use of AI and specifically focuses on innovation, governance, and public trust. It will require federal agencies to appoint a chief AI officer, and certain agencies will also be required to develop an AI strategy including AI governance. If you've heard our group speak about responsible AI, you'll know that one of the pillars of governance is the development of a cross-functional team involving a multitude of stakeholders, including those from legal, IT, risk, and compliance.
On the issue of public trust, the first memorandum will require that certain risk mitigation practices be put in place for high-impact AI.
The second memorandum focuses on procurement by federal agencies, including AI acquisition practices. It emphasizes "America First," a policy approach that, in this context, focuses on the use of AI products and services that have been developed and produced in the United States. The memorandum on procurement includes guidance on the AI acquisition life cycle, including during and after vendor selection. Unsurprisingly, again we see that theme of the cross-functional team informing procurement.
Another focus of the administration is AI infrastructure. This is an area in which we've seen recent activity and activity in the early days of the administration, beginning with the Stargate Project, which was announced as a $500 billion initiative to boost US infrastructure — specifically the building of data centers.
The administration's focus on AI infrastructure has been in tandem with the establishment and maintenance of the United States as a global leader in AI. Very recently, the Department of Energy issued an RFI to identify suitable locations for data centers. The Trump administration also issued an executive order this week promoting coal production, noting within in it that part of its purpose is to meet the energy demands of AI data centers.
What else do we have to watch out for coming out of the administration?
Omer Tene: Interestingly, on the OMB memoranda that you talked about and specifically the use memorandum, I think in some ways it's more a continuation of past policy, with the focus on high-impact AI and the requirements for risk analysis and risk mitigation.
With respect to the future, I'm going to make two predictions. One of them is that there is no vacuum in the tech policy space, specifically with a topic as hot as AI. As federal regulators take a step back, I expect the states to really weigh in on AI. In fact, we have already seen 900 or more AI bills in different state capitals, with some AI laws already passing in the states.
Lawmaking started with blue states like Colorado, California, New York, and Illinois, but we are also seeing red states innovate around AI. Texas has a very important bill called Texas Responsible AI Governance Act, Kentucky just passed a law, and Utah has really been at the cutting edge of putting in place AI laws and regulation, including the AI Policy Act and a law on chatbots in the mental health space.
The other prediction I'll make is that this field will continue to be driven by tech innovation more than policy innovation. The technology is just developing and improving so fast that it's hard to predict what's coming next. We've seen a bit of a shift from generative to agentic AI just over the past couple of months. And who knows: Maybe we'll have the gold standard — artificial general intelligence — come at some point over the next year or two?
What do you see in your crystal ball, Kaitlin?
Kaitlin Betancourt: I think we'll also be looking at the intersection of cybersecurity and AI in the coming months.
One area in which this cropped up was the launch of the DeepSeek model, the AI model coming out of China. This caught the administration's attention from a competitive perspective with respect to China. President Trump, in fact, called it a sort of wake-up call for Big Tech.
DeepSeek also poses national security concerns. There is a bipartisan bill in process to ban its use on government devices. Several states have already banned the use of DeepSeek on government devices, and NASA and the US Navy took action to ban DeepSeek from their systems.
Before we move into our wrap-up and summary, Omer, do you have anything else you'd like to add on the topic of AI and the administration?
Omer Tene: No. Thank you, Kaitlin, for hosting. Let's hear the final words.
Kaitlin Betancourt: In closing, I think we'd all agree there's been plenty of activity and a clear focus on AI by this administration.
Recurring themes include a clear directive to innovate using AI as well as to use AI governance as a method and an enabler of effective and safe innovation.
There is a big push for investment in AI infrastructure and the maintenance of the United States as a global leader in AI. This is a space that is rapidly evolving, and we are on watch.
Thank you.
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