Google’s Take on US AI Plan: Procurement Impact Explained
At the start of 2025, President Donald Trump signed an Executive Order (14179) to strengthen US leadership in AI.
Known as the AI Action Plan, the order aims to remove barriers to AI innovation by eliminating restrictive policies and fostering economic competitiveness, national security and human-centred AI development.
As part of this initiative, the White House Office of Science and Technology Policy (OSTP) has invited public input to help shape AI policy priorities. The goal is to promote private-sector innovation while ensuring responsible AI governance.
Major AI companies have already provided input, with several calling for policies supporting ‘freedom of intelligence’, open innovation and increased investment in infrastructure, research and solutions to address the large energy demands of increasing AI use.
The US AI Action Plan and its impact on the procurement industry
The AI Action Plan will have a significant impact on procurement, particularly in areas such as public sector acquisitions, AI-driven supply chains and regulatory compliance.
For procurement leaders. the focus needs to be on adapting to shifting policies, increased AI integration and evolving compliance frameworks as the adoption of AI continues to rise.
- AI-driven procurement automation and machine learning for supplier selection, contract management and risk assessments.
- Regulatory adjustments and compliance.
- Maintaining sustainable operations by prioritising AI solutions with lower energy consumption.
- Opportunities for increased government contracts particularly as federal agencies invest in AI infrastructure.
Google’s response to the US AI Action Plan
This week, Google has outlined its response to the US AI Action Plan. In a company announcement, Kent Walker, President of Global Affairs at Google & Alphabet, emphasised the need for investment, government adoption and international cooperation to secure AI leadership for the US.
Kent described AI as “a breakthrough in how we make breakthroughs”, highlighting its potential to revolutionise healthcare, scientific discovery and economic growth.
However, he stressed that “now it’s up to us to seize the opportunity”, urging policymakers to create frameworks that balance innovation and national security.
Google's key recommendations
- Investment in AI infrastructure and policy reforms: Google calls for both federal and local collaboration to address rising energy demands when it comes to AI expansion. It also advocates for export controls that safeguard national security while allowing US AI services to compete globally.
- Accelerate government AI adoption, particularly by modernising procurement to enable multi-vendor AI solutions and streamlined government acquisition processes.
- Develop international AI standards and trade policies to counter potential barriers.
“Policy decisions will shape the outcome of the current global AI competition. A pro-innovation approach that protects national security and enables widespread benefits will help us realise AI’s transformative potential and ensure that America’s lead endures. Google is committed to doing its part, including by working with the federal government to ensure the success of the AI Action Plan,” says Kent.
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