A New Era in US AI Regulation
Let’s break it down in easier terms. As reported by Quarles, on July 23, 2025, the White House released an official order for a new AI action plan. If that sounds familiar, that’s maybe because Biden’s old plan is reformed and amended. Rewriting all the rules and regulations that were lacking in Biden’s plan. The new US AI regulation has new vibes and an aura that says. “If you want government contracts, you’d better keep your AI politically sterile and safety-optional.
Executive Order & Deregulation
The Executive Order isn’t just scraping the old rules; it’s about rewriting the old ones and accelerating the administrative focus on responsible innovation. The main goal is to accelerate the new US AI regulation plan at all costs without too much hassle. The guidelines that were used to prioritize fairness, risk assessments, or harm mitigation are gone now. Agencies can now fast-forward towards funds procurement and developing their AI systems as long as they appear “neutral” and effective to the target audience.
Impacts on State-Level Rules & Federal Funding
Here’s where things get interesting; the new US AI regulation plan throws some shade at the states that enforce stricter AI rules. In simple terms, it means play nice with federal AI priorities or risk losing funding. That puts the states in a tough spot. Want mediclaim or healthcare grants? Then your state might need to loosen up on some strict rules. The new rule might be good, but not when the people can’t benefit from it.
Three Strategic Pillars of the Action Plan
1. Accelerating AI Innovation
According to The Employer Report, the US AI regulation action plan is obsessed with fast pace and speed. Why? Because it’s pushing agencies to revive their procurement policies and favour open-source AI models, support for the preparation of high-quality datasets for use in model training, and acceleration of the federal government’s adoption of AI.
2. Building American AI Infrastructure
If you or your company loves to build data centers, semiconductors, or anything that consumes energy and is AI hardware-intensive. Then the plan is meant for you, and pillar 2 has all the intentions to fasten the AI infrastructure process. The Executive Order focuses on supporting the Environmental Protection Agency (EPA) to expedite the return of Superfund and Brownfield sites for the construction of data centers and expressly makes available federal land for data center purposes.
3. Leading in AI Diplomacy & Security
The action plans outline the global expansion with the new Export Program by pumping federal support into exporting AI models to make allies. This program is intended to support the development and deployment of full-stack AI packages into the international market by industry-led consortia. This initiative doubles as several power and supply chain strategies, helping and improving the US AI regulation action plan.
Healthcare-Specific Developments
1. US AI Regulation Sandboxes for Health AI
Healthcare is one of the major concerns in every country. With the new action plan, the goal is to focus on improving the healthcare facilities in all the states while looking for more AI innovation, like Saudi Arabia’s first AI doctor clinic. Innovations like this are what is needed in the current fast-paced world, and the US AI regulation just made it even easier.
2. Transparency & Oversight in Clinical Deployment
There are some mentions of transperacy, but most of them are for “stakeholder engagement”. Why? Because no transparency means less trust and more deception. Therefore, according to the new US AI regulation plan no more hiding of critical information, especially if it’s for healthcare.
3. Navigating the New Landscape in US AI Regulation
If you work in healthcare and were barely working with old rules, then congratulations, because the new rules, procurement neutrality, are the new gatekeeper. So, there shouldn’t be any “default values” in your code. There shouldn’t be any bias detection unless value-neutral. Just code quickly, sell quickly, and don’t hurt too many patients.
Takeaways from US AI Regulation for Healthcare Leaders
Compliance Challenges Under US AI Regulation
If you want to gain trust and earn the federal dollars, then auditing is the way to go, and remove the “ideological” filters from the AI at work. Align with the federal procurement memos unless you like rejection letters. Following rules and regulations is the only way healthcare organizations can prove neutrality, strip down value-laden design criteria, and align with newly streamlined acquisition policies.
State Policy Interactions With US AI Regulation
States that are concerned about ethics? Might walk on eggshells. Since the federals are monitoring, and they are deep-pocketed. Rock the boat, and you become the next regulatory cautionary tale. Providers that work in states with tight US AI regulation might be financially penalized. The federal government is essentially saying. We don’t care how ethical your state regulation is; if it hinders innovation, we’ll shut it down.
Innovation vs Risk Trade-offs
Look out, because the deregulation model will bring fancy tools to hospitals and clinics in the near future. But it might also raise some questions about bias, misdiagnosis, and patient safety. The only option is to build your model in a way that it follows all the US AI regulations while being innovative.
Critiques & Areas for Watch
Regulatory Rollbacks & Public Accountability
The critics are already calling this deregulation gut-punching transparency. It speeds up clinical deployment but slows down public trust. What happens to one of these AI tools crashing during a diagnosis when there is no oversight? The courts are gonna have a field day, and the company might just shut down altogether. One small mistake and one big, huge payment.
Ideological Mandates & Impacts on Trust
The Plan’s signal that it would take DEI and “value-based” standards out of federal use of AI puts us in the middle of a scene out of Orwell’s worst nightmare. NIST is told to remain neutral, but if such neutrality equals absence of “social context,” are you really regulating AI, or just blindfolding it? This ideological teardown might be tempting to some quarters of Washington, but in healthcare, it sets off dire alarms. Can you really rely on AI to care about the needs of people if it is prohibited from caring about them? But that’s a question for some other time.
Until we meet next, scroll!
