Key Recommendations for a National AI Action Plan: Clarity and Innovation

Key Recommendations for a U.S. AI Action Plan

In a significant move towards the development of a national Artificial Intelligence (AI) Action Plan, a prominent technology and intellectual property law firm has submitted crucial recommendations to the U.S. government. These proposals aim to foster innovation and ensure legal clarity in the rapidly evolving AI landscape.

Focus on Innovation and Legal Clarity

The law firm’s recommendations are designed to promote responsible AI development while addressing existing regulatory hurdles. By focusing on critical areas that support AI adoption across various industries, the proposals seek to minimize unnecessary regulatory barriers and maintain the U.S.’s competitive edge in global AI development.

Key Proposals Submitted

The following key proposals were submitted to enhance the regulatory framework surrounding AI:

  1. Safe Harbor Exemption for Data Transfers to Third-Party LLMs: To alleviate uncertainty regarding the legality of transferring customer data to third-party Large Language Models (LLMs), the firm advocates for a safe harbor exemption. This would enable businesses to engage with third-party LLMs without violating state-specific data privacy regulations.
  2. Revision of USPTO Policy on AI-Generated Inventions: The firm calls on the United States Patent and Trademark Office (USPTO) to revise its policies to include protections for inventions discovered or created by AI systems. This change would encourage further innovation by recognizing the contributions of AI in the discovery process.
  3. Clarification of Copyright Protection for AI-Generated Works: Recommendations include revising U.S. Copyright Office policy to permit the registration of works generated by AI, as long as a human provides essential creative input. This would ensure that AI-generated works receive appropriate copyright protection.
  4. Tax Incentives for AI Data Center Investments: The firm proposes the inclusion of tax incentives in the AI Action Plan to encourage investment in AI data centers. These incentives would prioritize AI infrastructure, driving innovation and attracting investment into AI technologies.
  5. Review of Legacy Technology Laws: To facilitate AI adoption, existing laws created before the rise of AI technology should be reviewed. If found unnecessarily burdensome, these laws should be updated to meet the unique needs of AI development.
  6. Creation of a Federal AI Act: The firm advocates for a comprehensive federal Artificial Intelligence Act to provide consistent regulation of AI technologies, balancing innovation with responsibility and preventing conflicting state laws.
  7. Federal Agency to Coordinate AI Policy: Until the AI Act is established, a single federal executive agency should be appointed to coordinate federal and state policies on AI. This agency would ensure consistency and address regulatory complaints related to AI.

Conclusion

The law firm emphasizes that these recommendations aim to create a clear, efficient, and innovation-friendly regulatory environment for AI. The proposed changes are expected to accelerate AI adoption while ensuring protections for privacy, intellectual property, and investment. The United States has a pivotal opportunity to lead the world in AI development, and establishing a supportive legal framework is essential to unlock this potential.

Further engagement with policymakers and industry stakeholders is anticipated to refine these recommendations as the AI Action Plan takes shape.

More Insights

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Revolutionizing Drone Regulations: The EU AI Act Explained

The EU AI Act represents a significant regulatory framework that aims to address the challenges posed by artificial intelligence technologies in various sectors, including the burgeoning field of...

Embracing Responsible AI to Mitigate Legal Risks

Businesses must prioritize responsible AI as a frontline defense against legal, financial, and reputational risks, particularly in understanding data lineage. Ignoring these responsibilities could...

AI Governance: Addressing the Shadow IT Challenge

AI tools are rapidly transforming workplace operations, but much of their adoption is happening without proper oversight, leading to the rise of shadow AI as a security concern. Organizations need to...

EU Delays AI Act Implementation to 2027 Amid Industry Pressure

The EU plans to delay the enforcement of high-risk duties in the AI Act until late 2027, allowing companies more time to comply with the regulations. However, this move has drawn criticism from rights...

White House Challenges GAIN AI Act Amid Nvidia Export Controversy

The White House is pushing back against the bipartisan GAIN AI Act, which aims to prioritize U.S. companies in acquiring advanced AI chips. This resistance reflects a strategic decision to maintain...

Experts Warn of EU AI Act’s Impact on Medtech Innovation

Experts at the 2025 European Digital Technology and Software conference expressed concerns that the EU AI Act could hinder the launch of new medtech products in the European market. They emphasized...

Ethical AI: Transforming Compliance into Innovation

Enterprises are racing to innovate with artificial intelligence, often without the proper compliance measures in place. By embedding privacy and ethics into the development lifecycle, organizations...

AI Hiring Compliance Risks Uncovered

Artificial intelligence is reshaping recruitment, with the percentage of HR leaders using generative AI increasing from 19% to 61% between 2023 and 2025. However, this efficiency comes with legal...