Donald Trump’s recent AI policy shift marks a turning point in global technology strategy. While media attention focused on tariffs and politics, the real disruption comes from the new US AI Action Plan. Announced on July 23, 2025, it replaces Biden’s AI Framework, which emphasized risk awareness, with an innovation-first approach.
The new strategy takes an aggressive stance. It pushes rapid AI development, removes regulations, and uses AI to strengthen US economic dominance. This could boost innovation and markets but risks weakening academic oversight and social accountability. For India, this pivot by the leading AI superpower offers a major opportunity—a chance to create a “third way” in AI built on ethics, inclusivity, and responsible governance.
The US AI Policy Shift and Its Global Ripple Effect
Trump’s AI Action Plan rests on three pillars—speeding up innovation through deregulation, building national AI infrastructure by removing red tape, and expanding US technology dominance worldwide. He supports this plan with three executive orders that target “woke AI,” lift data centre restrictions, and increase AI exports to set global standards.
Supporters argue that this shift will unleash private sector creativity, drive startup growth, and expand AI infrastructure at record speed. Critics warn that it sidelines AI safety, fairness, and accountability. Without regulatory guardrails, risks like misinformation, algorithmic bias, and mass surveillance could escalate.
This aggressive approach also forces other regions to respond. In Europe, regulators may face pressure to ease restrictions to keep their startups competitive. In China, the government is positioning itself as a champion of open-source AI through initiatives like the Shanghai Declaration. Both powers will shape the AI race in their own image , but neither may offer the balance that many countries in the Global South seek.
India’s Strategic Opportunity to Lead Ethical AI Innovation
In today’s fast-changing global landscape, India stands out as a democratic technology leader with rich digital transformation experience. Its transformative DPI model proves that innovation and social equity can thrive together. Learning from global innovation history, India is shaping an AI approach that values ethical use while competing strongly in the global AI market.
India can design a governance model that is neither fully deregulated like the US nor tightly controlled like China. This model can build AI systems for public good, ensure universal AI literacy, and promote co-created governance with government, industry, academia, and civil society. It would also safeguard against misuse and make the benefits of AI accessible to every citizen.
What an Indian UPI for AI Could Look Like
Like UPI of AI would be a public good, an open and interoperable infrastructure that would enable startups, corporations and government services to innovate. It would help democratise access to AI, reduce costs and inspire new application across critical sectors like health, education, agriculture etc.
The system could embed ethical parameters and be governed by accountability, transparency, and fairness, as a public good.
As the world is increasingly interested in India’s digital governance model, the potential to do a partnership with many interested countries in the Global South, would be high.
Why the Time to Act is Now
India’s role as host of the AI Impact Summit 2026 presents an exceptional opportunity to influence the global AI agenda. Announcing a substantial AI mission before the summit will establish India as a leader and a new global standard for AI leadership based on ethics and inclusion.
The stakes are high. AI is becoming the critical infrastructure of the 21st century and the policies that are made today will have repercussions in our elections, economies and security around the world. Trump’s AI policy could temporarily increase the US’s position, but, unchecked, it could cause future damage. India has the size, credibility and diplomatic credibility to lead a path toward a safer, fairer future for AI to be deployed.
Final Take
The AI race now goes beyond technology, it’s about values, governance, and global influence. The US and China follow very different paths, but India can stand out as a balanced, inclusive AI leader. With its strong digital public infrastructure, India has the chance to create a new model of ethical AI. This model can build trust, drive growth, and combine speed with responsibility.
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