OMB publishes guidance on AI procurement

New guidance from the White House Office of Management and Budget on artificial intelligence procurement released Thursday aims to bring a risk management culture to the federal government’s purchases of artificial intelligence and machine learning software.

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

“This new memo gives agencies the tools and information they need as they acquire artificial intelligence, realizing its promises while managing its risks,” an administration official told reporters during a press call Thursday.

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

The scope of the memorandum is defined by five specific provisions: requiring agency privacy officers to engage early and continuously in the acquisition of artificial intelligence to identify threats; encouraging agencies and vendors to work together to continuously monitor software; promoting the use of performance-based techniques in the acquisition process; introduction of new contract assessments and negotiation requirements; and protecting government data and intellectual property in the contract negotiation process.

“Due diligence that informs the procurement process is a key moment in ensuring that we are set up for success – – that federal agencies are setting themselves up for success – in line with our expectations of agencies, that by using artificial intelligence to improve the way we deliver missions for the American people, they are doing so in a manner consistent with the guidance we have published previously,” an administration official said.

Interagency collaboration is the latest provision highlighted in the OMB memorandum, which encourages federal agencies to work as a team to prioritize AI investments based on individual agency missions and develop the capacity to effectively deploy an AI system.

“The guidelines are part of the Biden-Harris Administration’s comprehensive strategy for responsible innovation and are intended to be the first step toward helping agencies and providers evolve together as the AI ​​marketplace continues to evolve – charting a course to ensure federal takeover. Artificial intelligence enables agencies to responsibly optimize the services they provide to citizens American,” the OMB fact sheet reads.