AI Week in Review - 9/6/25

Public Sector

Author

Chris Kraft
September 06, 2025

The Details

Federal

President Trump and First Lady Melania hosted a high‑profile gathering of top technology executives at the White House on September 4, 2025, to advance collaborative efforts in artificial‑intelligence infrastructure and innovation.

First Lady Melania Trump hosted the second meeting of the White House Task Force on Artificial Intelligence Education, promoting the Presidential AI Challenge and urging AI’s growth to be “managed… with watchful guidance.

Hitachi Energy announced a $1 billion investment in U.S. grid infrastructure—including a $457 million Virginia transformer facility—citing President Trump’s AI Action Plan as the catalyst for bolstering energy dominance and AI readiness.

U.S. Air Force and Navy fighter pilots (F‑16s, F/A‑18s, F‑35s) ran the Pentagon’s first live test under real‑time AI direction using AI battle‑management system. 

Anthropic formed a bipartisan 11‑member National Security and Public Sector Advisory Council—including former senators and intelligence leaders—to guide secure, strategic deployment of its AI (Claude Gov) across U.S. defense and government systems.

Emil Michael, Undersecretary of Defense for Research and Engineering, stated that AI and other innovations will enhance warfighters’ situational awareness and adversary tactic recognition, thereby significantly improving decision-making in conflict scenarios.

The U.S. Department of Labor urged states to use Workforce Innovation and Opportunity Act funds to expand AI training and literacy for youth and adult workers.

Los Alamos’ Venado supercomputer—now on a classified network—started running OpenAI’s latest o‑series reasoning models on NVIDIA Grace Hopper GPUs to accelerate national security research across NNSA labs.

First Lady Melania Trump announced the Presidential Artificial Intelligence Challenge—inviting K‑12 students and educators to harness AI tools to address community challenges, with mentorship, prizes, and national recognition.

GSA and FedRAMP launched a pilot to prioritize secure, enterprise-grade conversational AI cloud services—capable of meeting authorization in two months—streamlining deployment across federal agencies.

As the Pentagon accelerates AI integration into military systems—including nuclear strategy—experts warn of a dangerous reliance on unpredictable models that may escalate conflict faster than humans can intervene.

The U.S. Space Force is embedding AI across daily operations through AI Challenges, pilot programs, and a strategic action plan to boost data literacy, operational efficiency, and space domain awareness.

State / Local

After an Illinois audit found that license plate data was improperly accessed by federal agencies, Flock Safety paused its pilot programs and implemented stricter safeguards, such as flagged searches and refined permissions.

Danbury launched a new school bus safety program—equipping over 160 buses with AI-powered “stop-arm” cameras that photograph license plates of violators and issue $250 fines, fully self‑funding the initiative.

Facing historic deficits and record municipal debt issuance, cities could sharply improve services, cut costs, and close budget gaps if they adopt off‑the‑shelf AI tools—but only with bold, reform‑minded leadership.

California AG Rob Bonta warned AI firms they’ll face legal consequences if chatbots expose children to sexualized content, following reports of inappropriate interactions with minors.

Governor Josh Stein’s Executive Order establishes a statewide AI Leadership Council, Accelerator, and oversight framework to position North Carolina as a leader in AI innovation, governance, workforce readiness, and public trust.

International

Dr. Jean Innes resigned as CEO of the UK’s Alan Turing Institute amid government pressure to prioritize defense-focused AI, internal unrest, and a whistleblower complaint threatening the institute’s future.

EU's AI Act guide outlines phased obligations from 2025–2027, detailing prohibited practices, high-risk system requirements, GPAI duties, generative-AI transparency, and provider/deployer roles via a four-step compliance approach.

Coventry City Council inked an AI deal with Palantir to boost social work, SEND, and children's services

While the U.S. leads in groundbreaking AI models and AGI ambitions, China is gaining ground through pragmatic, open-source AI tools like DeepSeek and scaling advantages in research and patents.

Everything Else

OpenAI is launching an AI-powered jobs platform, slated for mid‑2026, to connect employers—including small businesses and local governments—with candidates, while offering OpenAI Certifications to credential AI fluency.

Elon’s xAI and X filed a federal lawsuit in Texas accusing Apple and OpenAI of colluding to suppress AI competition by prioritizing ChatGPT in App Store rankings and limiting rivals like Grok—seeking billions in damages. 

Anthropic’s Threat Intelligence report showed that its AI tool, Claude Code, was weaponized in high-level cyberattacks—including automated reconnaissance, tailored extortion, and fraud—prompting the company to strengthen controls and share threat indicators.

A new study using payroll data from millions of U.S. workers finds early-career employment has dropped 13% in AI-exposed jobs, while older and less-exposed occupations remain stable or grow.

AI is stripping away performative workplace tasks—like PowerPoints, meeting summaries, and templated reports—revealing the hollowness of much corporate busyness and urging leaders to redesign work for true value.