Last week, the Trump administration rolled out its long-awaited AI Action Plan, titled “Winning the Race: America’s AI Strategy.” The plan was released alongside a set of Executive Orders (EOs) that aim to reshape how the federal government regulates, buys, and uses Artificial Intelligence (AI). The plan includes three core pillars focused on accelerating AI innovation, building AI infrastructure, and removing current AI guardrails. This plan inevitably impacts government contractors, including current GSA Schedule contractors or companies looking to break into the federal market. So, what’s in the plan, and more importantly, what aspects of the plan should contractors be paying attention to? Let’s review the plan below.
Pillar I of the AI Action Plan: Accelerating AI Innovation
The first pillar is all about speeding up AI development and adoption, particularly in the government sphere. The focus is removing “red tape and onerous regulation” to make it easier for companies, especially startups, to experiment, scale, and sell AI solutions to both the public and private sector.
This pillar goes hand in hand with the action to rescind Biden’s Executive Order 14110, which put processes in place to govern AI use and development. The Trump Administration also released an EO with this plan directing agencies to only procure large language models (LLMs) that are developed with neutrality and accuracy.
Under this pillar, federal agencies will create “regulatory sandboxes” where companies can test AI in real-world environments. There’s also a big push for open-source and open-weight models, which are seen by the administration as more transparent and easier to adapt for government use.
Additionally, the administration seeks to remedy the limited and slow adoption of AI. The plan recognizes that the roadblocks of harnessing AI are not necessarily the availability of models and tools, but large organizations such as healthcare systems being slow to adopt AI.
Accelerating AI in the Public Sector
As a government contractor (or prospective contractor), this is where you’ll want to pay the most attention in Pillar I. The first pillar emphasizes accelerating AI adoption in the government, such as driving AI adoption within the Department of Defense (DoD).
To kick this initiative off, the Chief Artificial Intelligence Officer Council (CAIOC) will be formalized as the primary venue for interagency coordination and AI adoption. GSA will also manage an AI procurement toolbox (in coordination with the Office of Management and Budget, OMB) to ensure uniformity across federal agencies.
Pillar II of the AI Action Plan: Building American Infrastructure
Pillar II is all about AI enablement—how can we implement such a large technological transformation without the infrastructure and energy to do so?
The plan outlines ideas for building data centers, expanding the power grid, and boosting domestic chip manufacturing. To accomplish this, there are steps to fast-track permitting for energy-intensive AI infrastructure, including pipelines and power plants. This pillar also addresses the need for training a skilled workforce to power the new AI infrastructure.
The accompanying EO for this pillar is “Accelerating Federal Permitting of Data Center Infrastructure”, which determines financial support, including loans, grants, and tax incentives for qualifying data center projects.
This part of the plan could mean opportunities for contractors working in professional services, facilities, energy, construction, data services, and cloud hosting—particularly if you have past performance with agencies like DOE, DHS, or GSA.
Pillar III of the AI Action Plan: Lead in International AI Diplomacy and Security
The final pillar was created to ensure the US dominates in AI development and security. The U.S. wants to lead the way in setting international AI norms and making sure American technology stays ahead of adversaries like China.
This includes stricter export controls and new mandates to review foreign-developed AI systems used within the U.S. for potential bias or security risks. Contractors who work with international partners or provide exportable AI solutions should take note here. This may affect where and how your products can be sold.
The plan also addresses exporting AI technology stacks (hardware, models, software, applications, and standards) to countries who are joining American’s AI Alliance. This brings us to the Executive Order paired with this pillar, “Promoting the Export of the American AI Technology Stack”, which officially establishes the American AI Exports Program.
The AI Action Plan and Federal Procurement
It’s safe to say there’s a lot going on in this plan. While we don’t have any specific funding numbers yet, it’s clear that’s there’s going to be increased opportunities in AI development, AI advancement, AI enablement, and infrastructure. However, we also expect some areas of AI to disappear, specifically related to AI regulation, AI tools created for social bias, and closed/proprietary models. We’ll discuss the expected impacts in more detail below.
Increased AI Opportunities for Contractors
- Data center and infrastructure development: Companies that build or support cloud infrastructure could see more solicitations, especially those tied to fast-tracked projects.
- Energy and grid modernization: The plan encourages investment in pipelines, power plants, and high‑demand energy zones needed to support AI.
- Open-source AI models and tools: Tools that are open-weight and modifiable could be prioritized in upcoming buys.
- Pilot programs and regulatory sandboxes: Expect opportunities with agencies like the FDA, SEC, and DOD as they test AI solutions in controlled environments.
- AI Training and Implementation: The plan creates opportunities for sourcing a skilled workforce to support AI infrastructure. This includes non-professional services, professional services, and training development.
Reduced Funding Areas
- AI tools that emphasize DEI, climate, or social impact goals: The plan deprioritizes these frameworks in favor of ideological neutrality. Tools framed around social outcomes are not aligning with the current plan.
- Vendors based in heavily regulated states or sourced from non-compliant foreign countries: The administration has threatened to withhold funding from states that impose strict AI laws. Additionally, foreign-developed AI systems will be evaluated more closely.
- Closed or proprietary models: If your AI product isn’t transparent or modifiable, you may run into more scrutiny during procurement evaluations or lose out on opportunities. The plan mentions focusing on tools that are open-weight such as large language models (LLMs) where the trained parameters (weights) are publicly accessible.
What’s Next? Capitalizing on the Future AI Opportunities
While not exactly a surprise, this new AI Action Plan establishes a clear shift in federal priorities. The Trump Administration is serious about accelerating AI advancement and removing any barriers that pose as a threat to their timeline.
Now is the time to make sure you are keeping your GSA Schedule contract updated, and you have your business development team ready to respond to future AI solicitations. Since we are in the middle of federal government Q4, your team should already be monitoring GSA eBuy, SAM.gov, and other bid tools daily for government opportunities. If your team needs support in GSA Schedule management or replying to larger proposals, Winvale is here to help.
If you don’t have a pathway to sell to the government yet and you are looking to get a government contract like the GSA Multiple Award Schedule, we can help you succeed in the public sector.
