Scoop: Trump firings could derail AI action plan
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The Trump administration's slashing of the federal workforce amid the government shutdown is threatening AI work at the Commerce Department, according to sources close to the agency.
Why it matters: President Trump has lofty goals for AI, but sources say they will be difficult to reach if the agency loses institutional knowledge and the staff needed to implement ambitious executive orders.
State of play: Employees across the National Institute of Standards and Technology, the Bureau of Industry and Security and the U.S. Patent and Trademark Office have been let go, although a judge temporarily blocked these firings in a ruling this week.
- About 600 people have been laid off across the Commerce Department since Oct. 1, an Office of Management and Budget filing notes.
- A Commerce Department official told Axios that figure is closer to 440 people, but could not explain the discrepancy with the OMB number.
- These agencies are at the center of work to carry out the White House's AI action plan, and are responsible for setting standards and reforming the way procurement works.
- The administration may be looking to replace some technical processes within the department with AI itself, according to sources.
Behind the scenes: BIS staff has been impacted, including personnel in charge of doing outreach to Silicon Valley and answering compliance questions, per sources familiar.
- At NIST, there have been fewer than 40 layoffs impacting the Manufacturing Extension Partnership and the Baldrige programs, which were proposed for elimination in the president's budget request, sources said.
- The MEP program is an advanced tech and cyber resource for manufacturers, and the Baldrige Program is a federal initiative focused on helping businesses stay competitive.
What they're saying: "If you don't have the advanced technology of small manufacturers, then you're obviously not going to be able to compete with China," said Carrie Hines, the president and CEO of trade association American Small Manufacturers Coalition.
- "You can't just come and bring AI to a manufacturer if they don't have the workforce to support it or the machines to implement it."
Per one industry source who works closely with Commerce, there's a belief that any cuts will be permanent, with technical roles being replaced by contractors instead of rebuilding in-house capacity.
- Massive cuts to teams will derail progress on AI work, and the staffers that are left will struggle to keep daily functions going, the source said.
Catch up quick: Tech agencies at Commerce faced DOGE cuts earlier this year.
What's next: Commerce is facing a deadline next week to implement an AI executive order, with companies gearing up to offer proposals for the infrastructure, tools and models they want the government to designate as "priority" AI export packages.
- Comments to the Office of Science and Technology Policy on federal regulations that hold back the development and deployment of AI are also due later this month.
