OMB Issues Memorandum on Driving Efficient Acquisition of Artificial Intelligence in Government
Summary
On April 3, 2025, the Office of Management and Budget (OMB) issued a Memorandum for the Heads of Executive Departments and Agencies (M-25-22) on Driving Efficient Acquisition of Artificial Intelligence in Government. The Memorandum issued from Executive Order 14179, which President Trump signed on January 23, 2025, directing the OMB to revise OMB Memorandum M-24-18 to make it consistent with the Order’s policy to “sustain and enhance America’s global AI dominance in order to promote human flourishing, economic competitiveness, and national security.”
The Memorandum has three grounding themes:
- Ensuring the Government and the Public Benefit from a Competitive American AI Marketplace
- Safeguarding Taxpayer Dollars by Tracking AI Performance and Managing Risk
- Promoting Effective AI Acquisition with Cross-Functional Engagement
It directs agencies to update agency policies; maximize use of American-made AI; protect privacy, IP rights, and use of government data; spotlight AI acquisition authorities, approaches, and vehicles; contribute to a shared repository of best practices; and determine necessary disclosures of AI use in the fulfillment of a government contract. The Memorandum also details requirements and recommendations for agencies as part of their AI acquisition practices, such as identification of requirements, market research and planning, solicitation development, selection of AI proposals, contract administration, and contract closeout.
