The US AI Action Plan: What HR Should Know
by Theresa Fesinstine
AI Educator for HR Teams | Adjunct Professor | Author PEOPLE POWERED BY AI
July 23, 2025
Tonight while driving to pick up my husband at the train, NPR had a live announcement that the White House just signed America’s AI Action Plan, a federal blueprint outlining the US approach to artificial intelligence. I grabbed my husband and then jumped right into the plan.
While the headlines will likely focus on defense applications and "winning the global war in AI", the implications for HR leaders are immediate and far-reaching. This plan frames AI not just as a technological shift, but also positions it as a catalyst for workforce transformation. And it calls on organizations across the country to prepare accordingly.
The policy is clear: a globally competitive AI ecosystem depends on a trained, AI-literate workforce. This is now federal strategy.
The Plan Elevates Workforce Development as National Policy
Several federal agencies, including the Department of Labor, Department of Education, and National Science Foundation have been directed to prioritize AI literacy across workforce programs. That includes career and technical education, apprenticeships, employer-led training, and retraining for workers impacted by automation.
The plan also recommends that the Department of the Treasury issue guidance under Section 132 of the Internal Revenue Code, potentially allowing employer-sponsored AI training to be reimbursed tax-free. That would align it with how tuition reimbursement is treated today, and would encourage companies to invest in AI skill development. Unfortunately, timing for this review wasn't specifically stated, so I'll be keeping an eye out for updates.
For HR leaders, this sets a clear direction: AI training should not be considered discretionary. It is becoming a baseline requirement for workforce readiness, and a qualifying expense in federal workforce strategy.
The Limiting Factor Isn’t Technology. It’s Organizational Readiness.
The Action Plan acknowledges a structural challenge that many leaders in HR and learning have already encountered.
“The bottleneck… is not necessarily the availability of models, tools, or applications. Rather, it is the limited and slow adoption of AI, particularly within large, established organizations.” — Pillar I: Enable AI Adoption
With so much public attention on models and infrastructure, the real work will happen inside organizations that must rethink workflows, performance expectations, and employee development.
AI capability is not something that can be addressed solely through tool adoption. The frame to "go experiment and break things" hasn't been working. I've said it many times, the road to successful adoption will require coordinated change: new role design, new competencies, and targeted enablement. That responsibility rests largely with HR, and right now we are still at the beginning of the runway... but we are moving fast.
Funding Access May Be Tied to AI Regulatory Climate
And a note around the political fire pit: the plan also signals that federal workforce funding could be restricted based on a state’s AI policy stance, in fact it was very clear on this:
“The Federal government should not allow AI-related Federal funding to be directed toward states with burdensome AI regulations…” — Pillar I: Remove Red Tape
This has potential effects for organizations with a national footprint, especially those that rely on state or regional workforce partnerships. The location of your workforce could influence an organizations eligibility for federal training support or participation in pilot programs.
What’s Not in the Plan: Ethics, DEI, and Environmental Accountability
[Sad, but not surprising...]
For all its emphasis on speed and scale, the Action Plan is notably silent on several areas that we as HR leaders consider critical to long-term AI success: ethics, diversity, and environmental responsibility.
It goes further than omission. It explicitly instructs the National Institute of Standards and Technology (NIST) to revise the federal AI Risk Management Framework to eliminate references to:
“Misinformation, Diversity, Equity, and Inclusion, and climate change.” — Pillar I: Free Speech and American Values
This is a material shift. The previous AI guidance under Executive Order 14110 included safeguards related to fairness, algorithmic bias, and transparency. The new plan deliberately removes that language in favor of “free speech” and “objectivity,” without offering alternatives for oversight or inclusion.
The result is a policy framework that accelerates capability but offers no guidance on equitable deployment or environmental impact. These concerns will not be addressed at the federal level, at least not under this plan.
That burden, too, will fall to HR.
Where HR Leaders Should Focus Next
Given the plan’s priorities, and its omissions, here are five actions HR teams should consider now:
Conduct a Workforce AI Audit Assess where AI is already embedded across your tools and workflows. Map exposure, gaps, and opportunities by function. This is a service I can help you with if you don't know where to start.
Prepare for Section 132 Guidance Begin conversations with finance and legal teams. If AI training becomes tax-advantaged, organizations that are ready will scale faster. Ring the bell in my profile on Linkedin to be notified when this happens... you can be sure I'll be on top of this one!
Establish Internal Standards for Ethical AI Adoption In the absence of federal DEI or transparency standards, HR must lead in asking the hard questions about bias, data, and vendor accountability.
Track State-Level AI Policy Developments Funding eligibility may depend on your location. Stay current on how your state is approaching AI regulation, and how that may impact your workforce strategy.
Final Thought
The Action Plan frames AI as a national race to be won, and in many respects that urgency is warranted. The pace of change is accelerating. The pressure to adapt is real. And the challenge to oversee the adoption for skilled, AI-enabled workers is growing.
But if the only metrics are speed and dominance, we risk building systems that are efficient but inequitable. Scalable, but not inclusive. Technically advanced, but socially blind.
This is where HR leadership matters most.
The federal government may have set the direction, but we will determine how this transformation is experienced inside organizations, with our teams: whether it enhances human capability or degrades it, and whether it unlocks opportunity or deepens disparity.
Let’s lead accordingly.
Theresa Fesinstine is the force behind peoplepower.ai, empowering HR leaders to activate AI at work with impact. With over 25 years as a People & Culture executive, she’s a LinkedIn Top Voice in AI, MIT-certified in AI for Business Strategy, and alumna of the Luxembourg AI Academic Summer School through Zortify.
She’s now the author of the April 2025 release “People Powered by AI: A Playbook for HR Leaders Ready to Shape the New World of Work” a candid, action‑oriented guide helping HR pros make AI practical, ethical, and people‑first.
In Fall 2024 she became Adjunct Lecturer in AI for Business and HR Management at City College of New York (CUNY), teaching undergraduates and professionals how AI can amplify human potential.
She’s a sought‑after keynote speaker and podcast guest, most recently featuring on the “AI in Leadership” episode of The Made Leader podcast in May 2025, where she outlined practical steps for managers to lead AI adoption. She also appeared on The Modern Manager podcast to share real‑world “Do’s & Don’ts” for AI at work.
Theresa advises multiple AI‑first startups, recognized as one of PYN’s “50 Women Over 50 in AI” and recipient of the Dextego AI Leadership Award. She’s active in All Tech is Human, TroopHR, and co‑hosts monthly AI Quick Clinics for HR Experts.
