Trump’s AI Action Plan: The Impact on HR and Employers

On July 23, President Donald Trump unveiled a sweeping national strategy for artificial intelligence workforce readiness that incentivizes employers to provide AI training and reskilling for their employees. Trump also signed three executive orders (EOs) aimed at promoting the export of U.S.-made AI technology, speeding up the permitting process for new data centers, and requiring AI companies with federal funding to create politically neutral AI models.

America’s AI Action Plan, a 23-page road map that seeks to operationalize Trump’s Day One Executive Order on AI, signals a new national strategy for global AI leadership related to innovation, infrastructure, and international influence. The plan outlines policy recommendations across AI adoption, education, labor, and federal procurement.

"The president’s plan is not just about technology, but about people,” said Emily M. Dickens, J.D., chief of staff, head of government affairs, and corporate secretary at SHRM. “The emphasis is on a worker-first approach that addresses American competitiveness in an AI-driven workforce. The plan reflects a fundamental truth that SHRM has long championed: Technology alone does not move the workplace forward — people do.”

Here are the key takeaways for HR professionals to know:

Workforce Strategy: AI Literacy, Reskilling, and Job Preservation

The AI Action Plan frames AI not as a job destroyer, but as a transformative force that requires preparation from employers and workers. The plan supports:

• Guidance clarifying that many AI-related education and training programs offered by employers may qualify as eligible educational assistance under Section 132 of the tax code.

• AI skill development through apprenticeships, career and technical education (CTE) programs, and employer-sponsored training.

• A new AI Workforce Research Hub to track labor market impacts and forecast future disruptions triggered by the technology.

• Rapid retraining pilot programs for workers dislocated by AI and entry-level role transformation.

With these initiatives, employers could gain financial support to upskill staff, helping workers stay relevant as AI changes job requirements. At the same time, research hubs that study AI’s effects on job displacement, wages, and workplace dynamics — combined with data from government sources — can be used to track firm-level AI adoption, offering better insights for HR and strategic workforce planning.

Guardrails on Ideological Content in AI Models

A core pillar of the plan is ensuring what the Trump administration considers ideological neutrality in AI systems, especially those used by federal agencies or contractors. 

One of the new executive orders signed by Trump targets what the White House is calling “woke AI” models by requiring AI companies that receive federal contracts to create AI models and chatbots that are politically neutral and unbiased. Within the executive order, the policy of the U.S. is to ensure that large language models are “neutral, nonpartisan tools that do not manipulate responses in favor of ideological dogmas such as diversity, equity, and inclusion (DEI).”

Key recommendations of the “Preventing Woke AI in the Federal Government” order:

• Revisions to the National Institute of Standards and Technology’s AI Risk Management Framework to eliminate references to misinformation, DEI, and climate change.

• Procurement rules requiring that AI systems used by the government reflect “objective truth” rather than “social engineering agendas.”

• Formal evaluations of foreign AI models, especially from China, for signs of propaganda or censorship alignment.

Employers, especially contractors, may need to demonstrate that their AI tools are politically neutral. Organizations supplying or using AI in public-sector contracts may need to revisit how AI models are built and tested, necessitating new compliance and governance adjustments, particularly for federal contractors.

Deregulation of AI Infrastructure

Another new Trump EO envisions aggressive deregulation to fast-track infrastructure tied to AI development and energy production for data centers. The Accelerating Federal Permitting of Data Center Infrastructure order aims to:

• Streamline permitting for data centers, semiconductor facilities, and power infrastructure.

• Create a new nationwide permit specific to AI infrastructure.

• Expand the FAST-41 process — which expedites major infrastructure reviews — to all AI-related projects.

• Increase the use of federal lands for data center and energy buildouts.

These moves could trigger rapid hiring needs in real estate development, skilled trades, and construction, which would require employers to develop new workforce planning models and partnerships with trade schools and technical programs.

Promoting the Export of US-Made AI Technology

A third EO aims to promote the export of U.S.-made AI technology to countries that are friendly with the U.S. The order, Promoting the Export of the American AI Technology Stack, incudes efforts to: 

• Export U.S.-made AI technology to allies and partners.

• Pre-empt conflicting state laws by tying federal funding eligibility to states’ AI regulatory frameworks.

• Counter Chinese influence in international AI governance bodies.

Employers managing multistate or international operations may need to navigate increasingly complex policy environments and align hiring, training, and compliance with evolving federal pre-emption standards.

What HR Needs to Do Now

Given these new EOs and the dramatic shifts in policy and AI technology already underway, SHRM recommends that HR leaders act swiftly to:

• Integrate AI strategically to drive return on investment. Adopt a balanced approach that blends human and artificial intelligence to build a resilient, future-ready workforce. Evaluate how AI can streamline operations while amplifying — not replacing — human capability.

• Prioritize human impact in AI deployment. Put worker well-being at the center of any AI implementation. Conduct impact assessments and involve employees in the design and rollout of AI tools to ensure ethical, people-first outcomes.

• Offer tax-free AI skills training to boost retention. Implement tax-free reimbursement programs for AI and digital training. This strategy not only upskills your workforce but also drives retention and long-term organizational readiness.

• Co-create workforce training with educators. Partner with community colleges, universities, and training providers to co-design programs aligned with your actual talent needs. Ensure the curriculum reflects real-world job demands.

• Build talent pipelines early. Invest in pre-apprenticeships, registered apprenticeships, and CTE programs. Collaborate with local schools and workforce boards to cultivate in-demand skills before hiring.

• Use labor market data to guide talent strategy. Leverage tools such as the AI Workforce Research Hub and local labor market analytics to proactively identify skills gaps, forecast hiring needs, and design responsive workforce plans.

• Implement agile retraining models. Launch short-form, scalable retraining programs for displaced or transitioning workers. Focus on flexibility, speed, and measurable skill outcomes to stay competitive in a changing labor market.

The Trump administration’s AI plan is a signal to the business community that the federal government is betting big on AI as a growth engine. For HR, this is a leadership moment to mobilize learning, talent, and workforce strategy to keep up with the pace of innovation.