All American AI: New Omb Memos set priorities for the use and acquisition of the federal government for the Bundeski | Sheppard Mulllin Richter & Hampton LLP

On April 3, 2025, Omb released two new memorandum on artificial intelligence (“AI”), as listed by Executive Order 14179. Removing obstacles for American leadership in artificial intelligence. (As a memory, President Trump issued the Executive Order (EO) 14179 after lifting the AI ​​Executive Ordinance of President Biden (EO 14110)).

The first memo (M-25-21) contains guidelines for agencies for the use of Bundeski, while the second memo (M-25-22) focuses on the acquisition of AI of the agency. In short, these memos signal that the Federal Government occupies the AI ​​and plans to maximize its AI usage. Foreign authorities can use AI to improve the operational effectiveness, to improve decision -making, to automate routine tasks and to analyze large data records for knowledge that could impair the guidelines and compliance with the official compliance. Contractors can expect AI technologies to accept a flood of instructions and agencies.

Omb memo M-25-21

M-25-21, Accelerate the federal use of AI through innovation, governance and public trust -This memo focuses on the responsible federal authority -KI use. We find out under the most important points and schedules:

• Directions. Agencies must issue AI strategies within 180 days and publicly publish these strategies on their websites. In addition, agencies must name a Chief Ai officer within 60 days (if they haven’t done this yet). Agencies will also develop internal guidelines and generative AI guidelines within 270 days.
• Ai boost. Agencies must identify and remove obstacles to the introduction and application of AI. Treaty should determine an optimized increase in federal interest in AI products, especially in the American AI.
• High impact ai. The memo introduces the concept of the “highly effective AI”, which is KI with an output, which “serves as the main basis for decisions, which have legal, material, binding or significant effects on rights or security”. M-22-21 This replaces the earlier concept in materials prepared by the bidet management of security systems and rights. There are certain considerations and expected requirements for the use and implementation of AI with a high impact that are defined in the memo.
• Code frame. Agencies must share all customer-specific AI code in active use, including models under the federal government with limited exceptions. Terms should take this into account if you provide a custom code and the possible effects on proprietary information.
• Public input. It is recommended that agencies ask public entries for the AI ​​guidelines. The contractors should be looking for rules, public comments or hearings to give feedback.

Omb memo M-25-22

M-25-22, Promotion of efficient acquisition of artificial intelligence in the government – This memo contains guidelines for the acquisition of Bundeski. Note that it applies to inquiries that were issued 180 days after the memo, including all option periods for existing contracts. Commercial products with embedded AI (e.g. Text processor, navigation system) are not As part of these instructions. Below you will find remarkable points and schedules:

• Ai boost. The acquisition will concentrate on AI that are developed and produced in the USA
• Guidelines and acquisition leaders. Agencies must update internal acquisition procedures within 270 days. Within 100 days, GSA and OMB will be released publicly to support the Federal Functioning of Federation in the KI procurement. Terms should search for these guidelines because you should give valuable insights for shops with the government in the AI ​​room.
• Federal Information Sharing. Within 200 days, GSA and OMB will develop an internal best practice repository for AI acquisition. Although this is not expected that this is publicly available, this will probably be the internal resource for standard contract clauses and prices. This signals that the government will try to maximize the uniformity of the AI ​​acquisition practices across the agencies.
• Use by contractor. The Memo indicates the agencies to take the AI ​​use by providers and contractors into account in the contractual service that can occur outside the conscious acquisition of AI. While there are already ways for the disclosure of providers and contractual partners for AI use, the memo expressly warn the agencies of the non -requested AI use, which can represent risks, in particular in performance situations in which the government may not pretend it. The contractors should search for inquiries or contractual provisions that require more detailed reporting on the use of AI.

Go forward

The omb memos offer important insights into the changeover of the federal government and the takeover of AI technologies in the future. Due to the type of AI technology, contractors can assume that this area is constantly evolving. However, it is clear that AI is strong in the federal government. We expect more federal management and proposed regulations that result from these memos and will continue to present updates.

*Sidney Howe is cybersecurity Fellow in government practice in the company’s DC office in Washington.