AI Adoption in the Federal Government: A New Era Under the Trump Administration

With a new administration in Washington and a $500 billion AI infrastructure initiative underway, the U.S. federal government may be entering a phase of accelerated AI adoption.

Federal AI Expansion

AI adoption grew under the Biden administration, with agencies leveraging it for fraud detection, workflow automation, and data analysis. However, experts predict that the Trump administration will further expand federal AI use.

“Trump and his advisers have spoken about ‘unleashing AI,’ signaling a push for broader adoption within government agencies,” said Darrell West, a senior fellow at the Brookings Institution’s Center for Technology Innovation.

As the administration scales back AI safety regulations and deepens ties with major tech firms, federal AI usage is expected to rise. However, ensuring transparency and educating the public remain crucial for building trust in government AI applications.

AI Governance Framework

The foundation for federal AI governance was established under Trump’s first term, with executive orders EO 13859 (2019) and EO 13960 (2020). EO 13960 mandated an annual AI use case inventory, significantly expanding under Biden—from 710 cases in 2023 to 2,133 in 2024.

Reggie Townsend, VP of Data Ethics at SAS and a National AI Advisory Committee (NAIAC) member, emphasized the importance of this transparency: “The inventory was a crucial first step in building public trust.”

Biden’s EO 14110 (2023) introduced stronger AI guardrails, requiring agencies to designate chief AI officers, disclose safety-related AI use cases, and implement risk management guidelines. However, on his first day in office, Trump rescinded EO 14110, signaling a shift toward deregulation.

AI Applications in Government

The 2024 federal AI inventory reported 2,133 AI use cases across 41 agencies. The Department of Health and Human Services (HHS) led with 271 cases, reflecting a 66% increase from the previous year. Key applications include:

• Fraud Detection: The Social Security Administration’s Representative Payee Misuse Model, launched in 2023, flags potential financial fraud.
• Process Automation: AI streamlines administrative tasks and workflows within agencies.
• Data Aggregation: AI facilitates cross-agency collaboration, such as combining Department of Energy and HHS data to assess the health impact of energy policies.

Harvard Kennedy School adjunct lecturer Bruce Schneier anticipates even broader AI integration in government, from automating reports to drafting legislation and conducting audits.

Despite growing interest, the federal government lags behind the private sector in AI adoption, especially for generative AI, due to concerns over bias, reliability, and transparency.

AI Under a Second Trump Term

Trump’s return to office in 2025 signals an AI policy shift favoring reduced oversight and enhanced global AI leadership.

“Federal AI adoption will accelerate under Trump,” West said, citing efforts to integrate major tech figures into federal initiatives. Notably, Trump appointed xAI owner Elon Musk to lead the newly rebranded Department of Government Efficiency, formerly the U.S. Digital Service. This agency is tasked with modernizing federal technology, reducing costs, and driving deregulation.

With EO 14110 rescinded, the scope of AI governance under Trump remains uncertain. “Will he eliminate all guardrails, or keep some protections? That’s something to watch,” West noted.

Big Tech’s Role in Federal AI

Trump’s inauguration underscored tech industry influence, with Elon Musk, Mark Zuckerberg, Jeff Bezos, and Sundar Pichai in attendance. Major tech firms, including Amazon, Google, and Microsoft, each contributed $1 million to the event, while OpenAI CEO Sam Altman made a personal $1 million donation.

Some companies are aligning with the administration’s stance on AI and content moderation. Meta, for instance, has replaced its fact-checking services with a community-driven model similar to X’s Community Notes and relaxed its moderation policies.

A deregulated AI landscape could benefit big tech, particularly in areas like AI safety standards and data copyright issues, while advancing the administration’s vision for U.S. AI dominance.

AI’s Future in Government

On his second day in office, Trump announced a $500 billion AI infrastructure investment, forming Stargate—a coalition of OpenAI, SoftBank, MGX, and Oracle—to expand AI infrastructure nationwide.

“This will be the largest AI infrastructure project in history,” Trump declared, emphasizing the need for AI leadership against global competitors like China.

However, West warned that accelerated adoption must be managed carefully: “It’s critical that AI is implemented fairly, with privacy and security safeguards in place.”

Building AI Literacy

Effective AI deployment requires education within federal agencies. “Many government workers lack AI expertise, making it difficult to procure and implement AI solutions effectively,” West said.

NAIAC’s Townsend advocates for structured AI training, tailored to different federal roles. Public AI literacy is also crucial, with initiatives like the National AI Research Resource (NAIRR) promoting equitable access to AI education and development.

“The public must be informed enough to hold the government accountable on AI issues,” Townsend concluded.

As AI adoption accelerates, striking a balance between innovation, oversight, and public trust will define the next phase of federal AI policy.