The AI Revolution is Now Shifting Into Phase 2
All technological revolutions follow two phases:
- The initial breakthrough phase, which occurs before social/legal frameworks are in place.
- The “normalization” phase during which social/legal frameworks are implemented giving the technology a societal and financial legitimacy.
If you need a real-world example of this, think of the electronic music file or MP3 revolution. The first phase was Napster, which featured the sharing of music in what was later deemed as illegal activity (the legal framework was not yet ready for the technology).
Then along came iTunes: the normalized version of the technology in which MP3s could be bought and sold in a legally acceptable form.
AI is now entering phase 2 in its own revolution. On July 23rd 2025, the Trump administration published its America’s AI Action Plan.
The plan outlines three “pillars” for positioning the United States as a leader in AI, specifically, cutting regulations, building infrastructure, and a loose plan for establishing AI security. I’ve put together an overview of these positions below:
Pillar 1: Accelerate AI Innovation
This pillar focuses on fostering private-sector-led development of advanced AI systems and their applications to boost productivity, job creation, and scientific progress. Key objectives include eliminating regulatory hurdles, promoting open AI models, and integrating AI across industries and government.
Pillar 2: Build American AI Infrastructure
Aimed at addressing the foundational needs for AI scaling, this pillar tackles energy, semiconductors, and cybersecurity to match the pace of innovation and counter adversaries' rapid infrastructure growth.
Pillar 3: Lead in International AI Diplomacy and Security
This pillar seeks to export U.S. AI technologies globally while safeguarding them from adversaries, aligning international standards, and countering foreign influence to maintain strategic advantages.
In broad strokes, the plan involves a strategic shift away from the Biden administration’s focus on risk management in AI towards a “free market” model of promoting innovation and reducing regulation.
This is extremely positive for American AI companies. The Trump administration recognizes the potential of this technology and is putting a legislative/ legal framework in place to support its development.
This is great news for investors because it means there’s still a lot of money to be made from this trend. So, if you missed out on the first wave of the AI revolution (the introduction of LLMs) don’t worry, there’s still PLENTY of opportunities to leverage the impact of AI towards profitable investing.
On that note, we just published a new special investment report The AI Plays Your Broker Doesn’t Know About that details three unique investments designed to profit from the revolution in physical AI. Best of all, Wall Street has little to no idea these companies even exist, let alone their potential.
We are making just 99 copies available to the public. To pick up yours...
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research