As artificial intelligence penetrates deeper into every aspect of technology, agencies and vendors alike must consider new factors when purchasing these capabilities.
In a new memo released today, the Office of Management and Budget outlined these considerations under three headings.
Proactively manage AI risk and performance Foster a competitive AI market Create structures to manage and manage business processes related to AI acquisition
“This new memo provides the tools and information agencies need as they acquire AI that captures commitments while managing risk,” Jason Miller, OMB’s deputy director for management, said in a call with reporters. It is a thing,” he said. “The AI landscape is rapidly changing, and today’s guidance is a first step toward responsible AI acquisition by federal agencies.”
Miller said the memo meets one of the requirements of President Joe Biden’s Executive Order on Responsible AI last October, and comes as a growing number of government agencies gear up to take advantage of AI. , said they are trying to get ahead of the learning curve.
In fact, OMB is scheduled to release an updated government-wide AI use case inventory around December 16th. The 2023 inventory shows more than 700 use cases for AI, but given this excitement, that number is expected to easily double or triple. Focused on expanding the use of generative and predictive AI. A Government Accountability Office report last December found 1,200 existing use cases, but most of the reported AI use cases are “in the planning stages and not yet operational.”
That’s why OMB’s 36-page memo seeks to address current and emerging questions about AI purchases.
“AI acquisitions present some new challenges, but in some ways many acquisitions are similar to software purchases without AI,” Miller said. “The due diligence that informs our purchasing process ensures we are set up for success and our commitment to federal agencies as they use AI to improve mission execution.” It’s a critical moment to make sure you’re aligning with your expectations and setting yourself up for success.”My fellow Americans, they’re doing so in a consistent way. ”
To ensure that agencies apply appropriate rigor to AI tools intended to improve agency missions, OMB is reviewing what types of AI fall under this memo and which types. is not applicable.
“Data systems, software, applications, tools, and utilities established primarily for the purpose of researching, developing, and implementing artificial intelligence technologies, and where AI capabilities are integrated into another system or institution; a tool, utility business process, business activity, or technology system,” OMB wrote. “However, this term does not include common commercial products that incorporate artificial intelligence, such as word processors or map navigation systems.”
Avoiding AI vendor lock-in
OMB also detailed the types of AI to which this memo does not apply. For example, “evaluation of certain AI applications because the AI provider is a target or potential target of regulatory, law enforcement, or national security operations.” or “the acquisition of AI by a government agency to conduct basic, applied, or experimental research, unless the purpose of such research is to develop specific AI applications within the agency.” ”
Once agencies decide to apply these rules to the AI tools and capabilities they purchase, OMB says there is another important factor to consider when ensuring market competition.
OMB’s Miller said the memo focuses on concepts such as interoperability, transparency, data portability and intellectual property rights.
“We want to ensure choice and diversity in the federal market and demonstrate the agility that allows vendors to continue to innovate to improve the use of AI,” he said. “We want to make sure that we always get the best price for American taxpayers for the products and services that we are acquiring.”
For example, a government agency should “consider what rights and deliverables the agency needs to successfully accomplish its mission, and what vendors are required to do in the development and operation of AI systems and services for the federal government. Protecting the federal information we use and exploring open source development practices for AI code avoids vendor lock-in and avoids unnecessary costs.”
Cooperation between CXOs is essential
This may include negotiating the appropriate scope of licensing and other rights, as well as developing processes and schedules to provide the necessary components to operate and monitor AI systems. Input to development, testing, and operational processes.
The third challenge OMB is asking agencies to focus on is managing the business and acquisition process.
Miller said this means creating a “tight loop” between leaders within the agency and across government.
This memo aims to strengthen cross-agency coordination of various councils such as Chief Information Officer, Chief Acquisition Officer, Chief Data Officer, and Chief AI Officer, and to bring together these executives. Both efforts are required within government agencies.
“We’re sharing an inventory of use cases and reviewing them together. We’re bringing a group of people together. We’re all learning rapidly here. And we’re bringing a group of people together. , we find that multiple teams are trying to solve the exact same thing, and by bringing them together we try to focus on learning from pilots who are already further down the path than someone else and moving quickly. ” said a senior government official. “We’re sharing these important learnings and getting people to share non-sensitive procurement and acquisition information… so we can all learn from each other. I think it’s one of the most powerful ways to quickly avoid duplication of buying the same thing 400 times.”
OMB has been working on this memo since April, when it issued a request for information and held an industry roundtable as part of an effort to gather feedback on how best to address AI acquisition challenges. .
A second administration official said OMB received more than 60 comments from the RFI, totaling more than 430 pages.
“We have co-ordinated this effort consistently with all council groups and are now working with each agency individually on specific guidance, which will come as no surprise to them. No,” the first administration official said. “They partnered with us to help us meet the government’s goals and work to create actionable guidance and clarity for agencies to understand. “We wanted to hear from the people on the ground who are there,” and understand that so they can meet the deadline and so that we can continue to manage this effectively.” . ”
In a statement, Quinn Annex Reese, senior policy analyst at the Center for Democracy and Technology, said in a statement that OMB’s new memo provides government agencies with a clear roadmap to ensure the AI they purchase protects the rights and safety of citizens. He said he would provide a map.
“As federal spending on AI increases, this guidance provides an important framework not only to protect the public from potential harm, but also to encourage responsible AI practices across the broader AI market.”・Mr. Reese said.
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