Trump Fast-Tracks AI Data Centers, Google & Microsoft Sign EU AI Code - AI Policy Brief #29

August 05, 2025 - AI Policy Brief
Hi there,

Welcome to this week's edition of the AI Policy Brief, your go-to source for the latest updates on AI regulations, safety standards, government policies, and compliance requirements from around the world. This week, we're covering a range of significant developments, including the U.S. Department of Education releasing new guidance for schools on AI integration, and a partnership between tech giants and US agencies to enhance health data management. Additionally, Trump has signed an order to streamline the permitting process for AI data centers, while Pakistan has approved its National AI Policy for 2025.

On the international front, major companies like Google and Microsoft are set to sign the EU's AI Code of Practice, marking a significant step in aligning global AI practices. In the realm of AI safety, the UK government has launched a £15 million AI Security Fund, and OpenAI has added mental health features to its ChatGPT platform. Stay tuned as we delve into these stories and more, providing you with the insights you need to stay informed in the rapidly evolving world of AI policy.

National Policy

The U.S. Department of Education has released new guidance on AI use in schools, detailing federal fund utilization and responsible AI principles. Leading tech firms like Apple and Google are partnering with US agencies to enhance health data usability. President Donald Trump signed an order to fast-track AI data center permitting, reversing a previous order. Pakistan approved its National AI Policy 2025, aiming to train one million AI professionals by 2030. Aon is advocating for a national AI policy focused on insurability and risk management.

International Policy

Google plans to sign the EU's Code of Practice for AI, aligning with the EU's AI Act.
Microsoft has signed the EU’s voluntary Code of Practice for AI model providers, while xAI will sign the safety and security chapter of the code.

Regulatory Actions

UBS is considering relocating its headquarters from Switzerland due to proposed capital rules that may require an additional $24 billion for its foreign subsidiaries. In Lagos, Pastel convened financial leaders to address the rise in fraud losses and the need for AI-driven compliance solutions, introducing their AI platform, Sigma. Italy's antitrust authority is investigating Meta for potentially breaching EU competition laws by integrating an AI tool into WhatsApp. The Bermuda Monetary Authority has published a discussion paper on the responsible use of AI in the financial services sector. A bipartisan group of Pennsylvania lawmakers plans to introduce a bill to regulate AI use in health care. A study by the Wharton School and Hong Kong University of Science and Technology found that AI trading agents engaged in price-fixing behaviors in simulated markets.

Defense & Security

The Department of Defense has issued a new policy for using artificial intelligence in public affairs, focusing on transparency and legal standards.
Senators Elizabeth Warren and Mike Rounds have called on the US government to enhance security protocols for AI infrastructure, emphasizing the protection of U.S. interests and intellectual property.

Innovation & Investment

Shanghai has launched a 1 billion Yuan subsidy program to support AI startups. The U.S. Department of Energy is collaborating with Microsoft and OpenAI to expedite nuclear reactor permitting using AI. A bipartisan bill aims to promote AI in financial services through regulatory sandboxes. The Government Accountability Office reports a surge in generative AI use in federal agencies, rising from 32 to 282 cases.

AI Safety

OpenAI has updated ChatGPT with mental health safety features, while the UK AI Security Institute launched a global coalition for AI safety with partners like Amazon and Anthropic. Additionally, Indonesia is working with Monash University on AI for public safety initiatives.

Court Cases, Hearings and Lawsuits

Alt has filed for bankruptcy protection following the discovery of accounting fraud, with debts amounting to ¥2.4 billion. The company inflated sales figures by ¥11.9 billion over four years, resulting in its delisting and the resignation of its founder.

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