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U.S. to roll out major artificial intelligence policy overhaul

The US government has mandated the use of domestically produced AI across its departments. Thanks to these measures, the US is likely to become a global leader in AI and crypto, as per President Trump. The innovation has led to controversies in the area of safety and technological advancement.

The US government wants to become a global technology leader, and to do this, it has introduced a series of policy directives that will enhance the use of artificial intelligence in federal agencies. The OMB published new guidelines for policymakers, advising them to use “American-made” artificial intelligence (AI) to make things more efficient and to bolster America’s position when it comes to AI.

Released earlier in April, the memorandums outline the specifications and timelines for federal departments utilizing AI solutions. Agencies have a period of 270 days to revise their internal policies to reflect the new direction toward AI innovation.

Federal departments, it stated, ought to also utilize and invest in the national AI ecosystem to enhance performance.

President Donald Trump has signed an executive order for the new plan with a focus on AI and other technologies, like cryptocurrency.  In January 2025, Trump repealed a 2023 executive order from Joe Biden that emphasized the significance of AI safety and ethics.  

The present government contends that unnecessary restrictions on innovation hinder advancements and has therefore adopted an aggressive strategy to expand AI functionality. Importantly, the “Stargate” project, which is a national infrastructure project, has been initiated to create data centers focused on AI across the country.

Notable American models like OpenAI’s ChatGPT, Google’s Gemini, Meta’s Llama, and Elon Musk’s Grok will feature prominently in the rollout of AI in public services. The new policies will lay the groundwork for a more comprehensive use of AI in India and spur greater collaboration between the public and private sectors.

However, the policy shift has drawn mixed reactions. Supporters commend the focus on technology leadership and economic competitiveness. In contrast, critics caution that deprioritizing safety could expose the public to unknown harms and even malicious uses of AI.

The increased use of artificial intelligence has affected the crypto industry. Many Bitcoin mining operations have switched their use to AI, as there is demand for the same. Due to their connection with blockchain and AI, cryptocurrencies associated with these AI tools saw a giant uptake in 2024. This trend cooled off considerably in 2025. The market value of tokens connected with AI projects has fallen by 40% during the last year. The reduction was on account of the changing sentiment among investors.

The AI policy of the US government, irrespective of the ups and downs of the market, is a strong attempt at changing the workings of the federal government as well as the global tech positioning of the US. By focusing on innovation and local talent, this initiative will help keep America competitive in an increasingly AI-driven world.

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