• Donald Trump issued an executive order mandating that AI used by the government be ideologically neutral.
• BI's reporting shows training AI for neutrality often relies on subjective human judgment.
• Executives at AI training firms say achieving true neutrality is a big challenge.

President Donald Trump's war on woke has entered the AI chat.

The White House on Wednesday issued an executive order requiring any AI model used by the federal government to be ideologically neutral, nonpartisan, and "truth-seeking."

The order, part of the White House's new AI Action Plan, said AI should not be "woke" or "manipulate responses in favor of ideological dogmas" like diversity, equity, and inclusion. The White House said it would issue guidance within 120 days that will outline exactly how AI makers can show they are unbiased.

As Business Insider's past reporting shows, making AI completely free from bias is easier said than done.

Why it's so hard to create a truly 'neutral' AI

Removing bias from AI models is not a simple technical adjustment — or an exact science.

The later stages of AI training rely on the subjective calls of contractors.

This process, known as reinforcement learning from human feedback, is crucial because topics can be ambiguous, disputed, or hard to define cleanly in code.

The directives for what counts as sensitive or neutral are decided by the tech companies making the chatbots.

"We don't define what neutral looks like. That's up to the customer," Rowan Stone, the CEO of data labeling firm Sapien, which works with customers like Amazon and MidJourney, told BI. "Our job is to make sure they know exactly where the data came from and why it looks the way it does."

In some cases, tech companies have recalibrated their chatbots to make their models less woke, more flirty, or more engaging.

They are also already trying to make them more neutral.

BI previously reported that contractors for Meta and Google projects were often told to flag and penalize "preachy" chatbot responses that sounded moralizing or judgmental.

Is 'neutral' the right approach?

Sara Saab, the VP of product at Prolific, an AI and data training company, told BI that thinking about AI systems that are perfectly neutral "may be the wrong approach" because "human populations are not perfectly neutral."

Saab added, "We need to start thinking about AI systems as representing us and therefore give them the training and fine-tuning they need to know contextually what the culturally sensitive, appropriate tone and pitch is for any interaction with a human being."

Tech companies must also consider the risk of bias creeping into AI models from the datasets they are trained on.

"Bias will always exist, but the key is whether it's there by accident or by design," said Sapien's Stone. "Most models are trained on data where you don't know who created it or what perspective it came from. That makes it hard to manage, never mind fix."

Big Tech's tinkering with AI models has sometimes led to unpredictable and harmful outcomes

Earlier this month, for example, Elon Musk's xAI rolled back a code update to Grok after the chatbot went on a 16-hour antisemitic rant on the social media platform X.

The bot's new instructions included a directive to "tell it like it is."

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Image source: Getty Images.

Johnson & Johnson: down 11.5%, yield 3.4%

Johnson & Johnson (NYSE: JNJ) is a cash-flow machine. It generated $95 billion in free cash flow (FCF) over the past five years and returned 60% of it to shareholders. The stock is also a dividend powerhouse, increasing its dividend for 62 consecutive years. Johnson & Johnson has robust financials, invests heavily in research and development, and has big plans for both its businesses, pharmaceuticals and medical technology, making it a top S&P 500 dividend stock to buy and hold.

ExxonMobil: down 11.6%, yield 3.7%

ExxonMobil (NYSE: XOM) is one of the world's largest oil and gas companies. In 2024, the oil and gas giant generated $55 billion in cash flow from operations, compared to $30 billion in 2019. ExxonMobil is a dividend behemoth with a 42-year streak of consecutive dividend increases. After its $60 billion acquisition of Pioneer Natural Resources in 2023, ExxonMobil has been targeting higher production at even lower costs and focusing on boosting its cash flows, all of which makes this magnificent S&P 500 dividend stock a buy at every dip.

Procter & Gamble: down 14%, yield 2.7%

Procter & Gamble (NYSE: PG) owns over 60 brands, most of which are household names today. Although its organic sales growth has slowed due to higher costs and weak consumer sentiment, it's just a short-term blip. Procter & Gamble is restructuring operations and targeting core earnings per share by mid- to high-single-digit percentages in the long term by exiting low-margin brands and markets. Above all, Procter & Gamble has a strong balance sheet and is a Dividend King, having increased its dividend for 69 consecutive years.

NextEra Energy: down 19%, yield 3.3%

NextEra Energy (NYSE: NEE) operates the largest electric utility in America (Florida Power & Light), which generates steady cash flows. It is also the world's largest producer of wind and solar energy, as well as a key player in battery storage, all of which are growth drivers. NextEra Energy stock has increased its dividend for over 20 years and has generated humongous returns for investors who reinvested the dividends. The global shift to renewables and a massive pipeline make NextEra Energy a no-brainer S&P 500 dividend stock to buy and hold forever.

NEE data by YCharts.

Chevron: down 19%, yield 4.8%

Chevron (NYSE: CVX) is one of the largest integrated oil companies, operating across the entire value chain, from exploration and production to pipelines, refining, chemicals, and marketing. Chevron has massive oil and gas reserves but is also growing new low-carbon businesses, such as hydrogen and renewable fuels. Chevron has increased its dividend for 38 consecutive years, making it one of the best oil dividend stocks within the S&P 500. Chevron also just won a dispute with ExxonMobil and has acquired Hess in a massive $53 billion deal.

American Water Works: down 24%, yield 2.4%

American Water Works (NYSE: AWK) is the largest regulated water and wastewater utility in the U.S., serving over 14 million customers and 18 military bases.

AWK data by YCharts.

While generating stable cash flows from these regulated and contracted businesses, American Water Works' regular investments in its infrastructure help it secure base rate hike approvals, which continue to drive its earnings, cash flows, and dividends higher. American Water Works is targeting 7% to 9% annual dividend growth for the long term, making it an incredibly safe S&P 500 dividend stock to buy now and hold forever.

Realty Income: down 29%, yield 5.6%

Realty Income (NYSE: O), a real estate investment trust (REIT), pays a dividend every month and has increased it for 110 consecutive quarters now. The company owns over 15,000 properties globally and leases them under triple-net leases, where the tenants bear most of the costs. So, Realty Income enjoys high margins, and its diverse portfolio enables the company to navigate economic challenges. Realty Income's commitment to paying a monthly and growing dividend makes it one of the top 10 dividend stocks to double up on now and hold.

Oneok: down 29%, yield 5%

Oneok (NYSE: OKE) is one of the largest energy infrastructure companies in the U.S., with a network of pipelines spanning 60,000 miles. Three big acquisitions over the past couple of years or so, including that of Magellan Midstream Partners, combined with organic expansions, should help Oneok steadily grow earnings and meet its goal of increasing the annual dividend by 3% to 4%. When coupled with a 5% yield, Oneok makes for an appealing S&P 500 dividend stock to buy and hold.

Nucor: down 30%, yield 1.7%

Nucor (NYSE: NUE) is America's largest and most diversified steel company. It is also vertically integrated, meaning it sources the bulk of its raw material in-house. That's a huge competitive advantage to have in a commodity business and one of the key factors behind Nucor's strong financials and dividend growth. Nucor aims to return at least 40% of its earnings to shareholders, has increased its dividend for 52 straight years, and is primed to benefit from President Donald Trump's steep tariffs on steel imports.

NUE data by YCharts.

Medtronic: down 33%, yield 3.3%

With revenue of $33.5 billion for the fiscal year that ended April 25, 2025, Medtronic (NYSE: MDT) is the world's largest medical device manufacturer. It offers a wide range of products across cardiovascular, neuroscience, medical-surgical, and diabetes care and uses artificial intelligence and robotics technologies to build better products. Medtronic plans to divest its diabetes business into a separate company to unlock more value for shareholders. Meanwhile, it is only two dividend raises away from becoming a Dividend King, making this S&P 500 dividend stock a solid buy.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron, NextEra Energy, and Realty Income. The Motley Fool recommends Johnson & Johnson, Medtronic, and Oneok and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.