OMB releases AI procurement guidelines

The White House Office of Management and Budget’s new artificial intelligence procurement guidance, released Thursday, looks to bring a culture of risk management to the federal government’s AI and machine learning software buying. 

In accordance with OMB’s previous directive on AI acquisition, which focuses on standardizing agency usage of AI tools, the new OMB procurement guidance provides requirements and guidance for federal agencies to help usher in “meaningful cross-functional and interagency collaboration to reflect new AI responsibilities, managing AI risk and performance, and promoting a competitive AI market with innovative acquisition.”

“This new memo provides agencies with the tools and information they need as they acquire AI, capturing its promise while managing its risks,” an administration official told reporters during a Thursday press call. 

OMB’s guidance is another chapter in the Biden administration’s broader plan to leverage AI software carefully in government operations. The administration official noted that the AI used by agencies will likely be either built by contracting entities on behalf of a given agency or a commercial product purchased by an agency, and the new procurement guidance will promote responsible AI software acquisition, training and deployment.

Five specific provisions shape the scope of the memorandum: requiring agency privacy officials to have early and continuous involvement in the AI acquisition process to identify risks; encouraging agency and vendor collaboration for constant software vigilance; promoting the use of outcomes-based techniques in the acquisition process; introducing new contract negotiation evaluations and requirements; and safeguarding government data and intellectual property in the contract negotiation process.

“The due diligence that informs a buying process is a critical moment to ensure we're setting ourselves up for success –– that federal agencies are setting themselves up for success –– consistent with our expectations of agencies that when they are using AI to improve mission delivery for American citizens, they're doing so in a way that is consistent with the guidance that we released earlier,” the administration official said.

Interagency collaboration is the final provision highlighted in the OMB memorandum, which encourages teamwork between federal agencies in prioritizing AI investments based on individual agency missions and developing the capacity to deploy an AI system effectively.

“As a part of the Biden-Harris Administration’s comprehensive strategy for responsible innovation, the guidance is designed to serve as a first step toward helping agencies and vendors grow together as the AI market continues to evolve – charting the course for ensuring that federal acquisition of AI enables agencies to responsibly optimize the services they deliver for the American people,” the OMB fact sheet reads.