Axios AI+ Government

September 12, 2025
👋 Welcome to our new weekly newsletter exploring how lawmakers and regulators across the U.S. and the world are shaping — and using — AI.
- We're tech policy reporters Ashley Gold and Maria Curi, and we'll be in your inbox every Friday with the latest on how AI is colliding with government.
👀 ICYMI: Scale AI CEO Jason Droege, Sen. Ted Cruz (R-Texas), Rep. Ro Khanna (D-Calif.) and AlterEgo CEO Arnav Kapur join the speaker lineup for the Axios AI+ Summit D.C. next Wednesday at 2pm ET.
- We'll have more info on how to watch next week, so it's a great time to remind your friends to sign up for this newsletter.
Today's newsletter is 1,720 words, a 6-minute read.
1 big thing: Kratsios details White House AI plans
The government wants AI to accelerate quickly in the U.S., and it's about to take the first steps to remove as much red tape as possible, Office of Science and Technology Policy director Michael Kratsios told Ashley in an exclusive interview.
Why it matters: Kratsios is at the center of AI policy inside the Trump administration, and the White House has been laser-focused on reshaping rules around the technology.
Driving the news: OSTP later this month will ask the public and businesses to weigh in on the federal regulations that they think hold back the development and deployment of AI, Kratsios said.
- This request for information is the first policy action recommended in the White House AI action plan aimed at removing bureaucratic red tape.
What they're saying: Kratsios said that Europe's comprehensive AI law, the EU AI Act, is "not at all the way the U.S. is approaching this" space.
- The White House is instead backing what he describes as a "use-case and sector-specific" framework.
How it works: For example, in health care, there could be regulations that hinder the development of particular medical devices, Kratsios said. Or in finance, there could be regulations over algorithmic trading and consumer protection holding AI back.
- Kratsios applauded Senate Commerce Chair Ted Cruz's recent introduction of legislation that would allow companies to test products in a less-strictly regulated AI "sandbox," or testing zone.
- "Sandboxing, broadly in the world of emerging tech, is something I have been a big proponent of, and the president has supported over the years," Kratsios said.
Catch up quick: Kratsios served as President Trump's chief technology officer during his first term, and then worked for data labeling company Scale AI.
- He said that Trump's commitment to U.S. AI development is key to U.S. economic growth and national security: "He'll go down in history as the greatest champion of this technology."
Kratsios and the Trump administration will need to balance cutting red tape for AI innovation with protecting kids online during a precarious time for younger users who may develop dangerous relationships with chatbots.
- "I think the protection of our children is one of the most bipartisan topics when it comes to technology in Washington," Kratsios said.
- "When you look at the intersection of AI and America's youth, this is an area where you see some of the most clear-cut examples of where the line should be drawn."
- Kratsios said he applauds the Federal Trade Commission inquiry launched yesterday into AI chatbots, adding that "it's something we should see more of."
What's next: Kratsios said he is "personally most excited" about the American AI exports program called for in one of Trump's AI executive orders.
- The Commerce Department is tasked with standing up the program and requesting proposals from the industry on what a "full-stack technology package" would look like, in other words, an all-in-one American-made AI system from the chips to the software.
- "From there, we're going to try to export that stack around the world to our partners and allies," he said.
What we're watching: With Kratsios steering AI policy, Washington's new playbook is aimed squarely at clearing regulatory burdens, but the Trump administration will have to grapple with growing state-level action.
2. Exclusive: Inside Anthropic's D.C. blitz
Anthropic head of policy Jack Clark told Ashley that the company is planning a major D.C. expansion to ensure it's preparing lawmakers for the ways it sees AI reshaping American industries within the next year.
Why it matters: AI is moving too fast for policymakers to fully keep up with. What Anthropic views as its challenge: Telling Washington it's about to get exponentially crazier.
- "That's the hardest concept to communicate, because it is almost without precedent," said Clark, who expects the effect of AI will be a huge issue in the 2028 presidential election and the 2026 midterms.
- "There will be lots of questions about how AI is actually changing the labor market. The lesson over and over again has been AI arrives, it becomes such a big deal, but it changes all of the industries it touches," Clark said.
Driving the news: Anthropic plans to double its employee headcount in D.C., opening an official office in 2026 after outgrowing its coworking space. Its employees will focus on product, policy, and trust and safety.
- The company feels more strongly than ever how important it is to be close to policymakers to discuss the role of AI in society, Clark said.
- Anthropic is also kicking off a week of events in D.C. starting Monday.
What they're saying: "What we're trying to tell people next week is, yes, the technology has generated $5 billion in annual recurring revenue, and is doing all of these crazy deployments, and it's starting to affect national security and government and businesses," Clark said.
- "That is small potatoes compared to where it'll be in a year."
Zoom in: Clark and Anthropic CEO Dario Amodei will visit House and Senate members, including leadership and heads of committees, next week.
- "We're going to say to policymakers, you should expect that AI products are going to be deployed at a far larger scale than you see today, and they are going to be affecting your constituents' lives in many more ways than today."
What we're watching: Clark said Anthropic wants to see Congress pass federal transparency requirements for AI companies that mandate public disclosure of safety and risk assessment practices.
- The company endorsed S.B. 53, a California bill that would mandate transparency requirements.
- "Of course, we prefer it to be federal, but under a short timeline world, you've got to try some shots that are available to you," Clark said.
3. The new AI policy rulebook
Artificial intelligence is transforming how governments function, make deals and compete on a global scale.
Why it matters: AI policy is at the center of lawmakers' conversations — from Washington to Brussels and Beijing — and the decisions being made in the U.S. reverberate around the world.
- Federal agencies are debating not just how to regulate AI, but how to use it. State lawmakers and officials, meanwhile, aren't waiting on feds to make their own decisions.
What we'll do in the Friday edition of AI+ Government every week is help you make sense of how it's all connected, who the most important people are, and what trends are worth following.
The big picture: We've covered the rise of generative AI here in Washington closely, breaking news on the first serious conversations about it in Congress and the Biden administration's focus on AI safety.
- Recently, we've scooped key news about the Trump administration's approach to AI. We're plugged in with the people working inside and outside of the government to advance AI in the U.S.
- It's time to expand beyond D.C. as AI and tech policy grow in importance in state and international circles, with competition against China serving as the backdrop for many policy debates.
Zoom in: It's not just policymakers and top AI executives who are worth tracking.
- We're plugged into how people of all ages and socioeconomic status are affected by decisions made in the corridors of power.
- There are many stories to uncover about how AI intersects with education, the workforce, economy, health care, the environment and so much more.
The bottom line: AI+ Government will take you inside what's happening with AI policy across the globe and explore the ways governments are regulating, funding and rolling out this transformative technology.
4. The biggest AI policy challenges
Here are some topics that will drive our reporting.
- AI and workers: Elected officials often say that they're all about protecting workers and creators. We'll examine what they're doing — or not doing — to ensure that people have the skills they need in the new AI-driven economy and to minimize job losses.
- AI procurement: The government is tech's biggest customer, and President Trump is not shying away from wielding that reality to advance his agenda. We'll cover how governments use and buy AI, and how the companies that win large federal contracts set standards and shape the market.
- AI and sensitive data: AI has supercharged the privacy debate as governments around the world use health records, financial information and classified materials for everything from public services to national security. We'll also dig into how companies and politicians are looking to take control of harmful deepfakes that are alarming parents.
- State vs. fed AI regs: Washington is aiming to slow down state-level efforts to regulate AI. Who will come out on top?
- The U.S. vs the EU: Europe is always the first to regulate tech, and AI has been no exception. How are the bloc's rules working or backfiring? What are the lessons learned for the U.S.?
- AI and national security: AKA the bipartisan obsession in the U.S. to beat China, and how shapes every element of geopolitics and industrial policy. While the government grapples with controlling chip and advanced tech exports, what's the balance between national security and lucrative deals?
- The world AI creates: From smart cities and public safety to the carbon footprint of data centers, we'll dive into specific case studies to examine the world that AI is creating and what governments are doing — or not doing — about it.
- AI and antitrust: Long-entrenched Big Tech players are now facing stiff competition from AI companies, upending what we thought we knew about platform dominance and reviewing acquisitions.
- Personnel is policy: From tech CEOs to bureaucrats, we'll get to know the people in the spotlight and behind the scenes who are defining policy in the U.S. and around the world.
What trends did we miss? Hit reply and let us know.
Thanks to Mackenzie Weinger and David Nather for editing and Anjelica Tan for copy editing.
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