In July 2025, the White House released the National Artificial Intelligence (AI) Action Plan, outlining a federal strategy to expand AI adoption, reduce regulatory barriers, and promote workforce development. While targeted at federal agencies, the plan signals key shifts that may directly impact private employers using AI in hiring, human resources, and workplace management.
The plan urges employers to support workforce transitions as AI reshapes jobs. This includes reskilling and upskilling efforts, as well as engaging employees in how AI is deployed and how it may impact their roles.
A Shift Toward Deregulation
Unlike prior federal AI guidance that prioritized regulatory safeguards, the 2025 plan marks a clear pivot toward deregulation. It directs federal agencies to identify and revise or repeal any rules, policies, or investigations that may “unnecessarily hinder” AI development. This includes:
- Rescinding prior executive orders focused on oversight and accountability.
- Instructing the Federal Trade Commission to review or withdraw enforcement actions that may burden AI innovation.
- Recommending that final orders and consent decrees be modified or set aside if they are seen as restrictive.
- Discouraging new state-level AI regulations, signaling a preference for federal consistency over state-by-state approaches.
These changes reflect a broader goal of accelerating AI deployment across both government and the private sector, even at the potential cost of rolling back prior protections.
What This Means for Employers
Employers can expect fewer federal restrictions in the near term, along with greater responsibility to manage how AI is used in the workplace. With reduced external oversight, organizations should take a proactive approach to assessing risk, maintaining transparency, and protecting workers as AI becomes more integrated into business operations.
The plan’s emphasis on workforce development also encourages employers to invest in training and upskilling initiatives, including the use of AI-based tools to support learning. Employers should identify roles that may be affected by automation and provide employees with access to resources that support skill development and job transitions.
Next Steps for Employers
Although the guidance is not currently mandatory for private employers, it reflects a growing national push toward standardized, responsible AI practices. Employers should begin reviewing their current AI systems, governance processes, and workplace policies to ensure alignment with federal expectations.
Employers with operations across multiple states should also monitor for potential federal preemption of state-level AI rules. A shift toward nationally consistent standards could change how AI is regulated and increase the importance of internal compliance efforts.
