Federal Manager's Daily Report

The memo requires that agencies assure that privacy officials have early, ongoing involvement in AI acquisition processes. Image: eranicle/Shutterstock.com

OMB has issued the latest in a series of guidance under the wide-ranging 2023 executive order on agency procurement and use of artificial intelligence, focusing on managing risks and performance with additional requirements regarding promoting a competitive marketplace and collaboration among agencies.

Memo M-24-18 “includes best practices and specific requirements for managing AI risk and performance, with additional requirements for acquiring AI use cases associated with rights-impacting and safety-impacting AI,” says a White House fact sheet.

Among other provisions related to risk management and performance, the memo requires that agencies: assure that privacy officials have early, ongoing involvement in AI acquisition processes; determine when an acquisition would trigger additional risk management requirements for rights-impacting and safety-impacting AI; and assure that contracts obligate vendors to provide sufficient information to identify and manage risk.

Provisions related to promoting a competitive workplace include: incorporating acquisition principles designed to minimize vendor lock-in when establishing contractual requirements; explicitly considering interoperability and transparency during market research, requirements development, and vendor evaluation processes; and leveraging innovative acquisitions practices to secure good contractor performance and mission outcomes.

The memo also instructs agencies to “work together to share lessons learned to inform future policy and procedural efforts to support effective and responsible acquisition of AI,” it says, including by identifying and prioritizing AI investments that best serve an agency’s mission; developing the capacity to deploy any acquired AI; and promoting adoption of cross-functional best practices for the duration of use.

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