The White House Office of Management and Budget (OMB) recently issued two new memos outlining policies on the use of artificial intelligence (AI) in federal agencies and the procurement of AI products within the government. These memos, which were in line with an Executive Order signed by President Donald Trump earlier this year, superseded previous guidance issued by former President Joe Biden but retained some key recommendations.
The first memo, titled M-25-21, focuses on accelerating the adoption of AI within agencies by streamlining bureaucratic processes and establishing effective policies for the deployment of AI technologies. The memo emphasizes three main priorities: innovation, governance, and public trust. It calls for agencies to maximize existing investments by reusing data, models, and code, while prioritizing AI products developed in the United States. The memo also highlights the importance of robust risk management, particularly for high-impact AI applications that have significant legal, material, or binding effects on various factors, including human health and safety.
In healthcare contexts, high-impact AI use cases may include medical device functions, patient diagnosis and treatment, care allocation under public insurance, and health insurance cost control. The memo also maintains certain policies from the Biden administration, such as the requirement to appoint chief AI officers and establish oversight processes for high-impact AI applications.
The second memo, M-25-22, provides guidelines for the acquisition of AI products in government, with an emphasis on promoting a competitive AI marketplace, managing risk while tracking AI performance, and engaging in cross-functional collaborations to facilitate AI procurement. A new policy highlighted in this memo is the prioritization of purchasing American-made AI products and services. Additionally, the memo sets a 200-day deadline for the General Services Administration (GSA) to work with the OMB in developing a web-based repository for sharing information and resources related to AI acquisition.
The revocation of Biden’s 2023 executive order on AI by Trump shortly after taking office in his second term marked a shift in AI policy direction. Trump’s executive order emphasized the importance of maintaining U.S. leadership in AI innovation, free from ideological bias or engineered social agendas. This move aligns with Trump’s previous efforts to promote American AI innovation through initiatives aimed at boosting technical education, increasing access to federal data for AI researchers, and setting regulatory guidance for AI development across various sectors, including healthcare.
Overall, the new OMB memos signal a continued focus on advancing AI adoption and procurement within the federal government, with an emphasis on promoting innovation, governance, and public trust in AI technologies. These policies aim to ensure the responsible and strategic use of AI to drive economic growth and maintain U.S. leadership in AI innovation.
