Winning the AI Race? The US AI Action Plan in Context

Abstract

This report analyses the Trump administration's July 2025 "AI Action Plan" and accompanying executive orders, placing them within the broader context of US artificial intelligence governance. We argue that the Action Plan continues the US AI leadership strategy established across several administrations, now incorporating current Republican political priorities. Its three main pillars-accelerating AI innovation, developing American AI infrastructure, and leading international AI diplomacy-largely reflect previous efforts to sustain US competitiveness against China while fostering domestic innovation. The administration's new contribution lies in explicitly embedding culture-war issues into AI governance, including mandates for "ideologically neutral" AI systems and removing diversity, equity, and inclusion considerations from federal AI frameworks. Moreover, the plan seeks to formalise an "AI alliance" to counter the perceived Chinese coalition-building among Global Majority countries. However, deep supply chain interdependencies-especially in the production of rare earth materials and semiconductors-may limit the practical feasibility of decoupling the AI ecosystem. These structural limitations imply that, despite increasingly aggressive rhetoric, ongoing cooperation between US and Chinese AI blocs may remain unavoidable, potentially creating opportunities for collaborative governance approaches even as competition based on alliances intensifies.

Keywords: AI Action Plan, AI governance, AI policy, US AI policy, Global AI Governance Action Plan, China AI policy, China AI governance, US AI governance