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White House Unveils Government-Wide Plan to Streamline AI Integration

By A.J. Dhaliwal, Mehul Madia & Beineng Zhang on April 11, 2025
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On April 7, the White House issued a fact sheet outlining new steps to support the responsible use and procurement of AI across federal agencies. The initiative builds on the Biden Administration’s 2023 Executive Order on AI and is intended to reduce administrative hurdles, improve interagency coordination, and expand access to commercially available AI tools.

The announcement requires the Office of Management and Budget, the Office of Federal Procurement Policy, and the General Services Administration to issue updated guidance and provide centralized tools to support implementation. Key measures of the guidance include:

  • Appointing Chief AI Officers. Each agency must designate a senior official responsible for overseeing AI governance and compliance.
  • Developing AI Strategies. Agencies are required to submit AI implementation plans within 180 days, identifying operational uses, risk mitigation strategies, and workforce needs.
  • Removing procurement barriers. Agencies must streamline acquisition processes that may hinder the timely adoption of AI systems, including by adopting performance-based procurement approaches.
  • Standardizing commercial AI guidance. OMB will release uniform guidance to support the responsible procurement and deployment of off-the-shelf AI tools, with a focus on privacy, equity, and safety.
  • Expanding Shared Tools and Expertise. The Administration will centralize technical resources to help agencies evaluate AI systems and manage associated risks.
  • Increasing Access for Small Businesses. The initiative aims to ensure that small and disadvantaged businesses can compete for AI-related government contracts.

Putting It Into Practice: The directive highlights the federal government’s commitment to institutionalizing responsible AI use across sectors while promoting innovation (previously discussed here). Similar momentum is building at the state level, where we expect to see continued parallel developments (previously discussed here and here).

Photo of A.J. Dhaliwal A.J. Dhaliwal

A.J. is an associate in the Finance and Bankruptcy Practice Group in the firm’s Washington, D.C. office.

Photo of Mehul Madia Mehul Madia

Mehul Madia, special counsel in the firm’s Washington, D.C. office, provides deep consumer finance and fintech expertise to clients, leveraging more than 15 years’ of public and private sector experience.

Read more about Mehul Madia
Photo of Beineng Zhang Beineng Zhang

Beineng Zhang is an associate in the Finance and Bankruptcy Practice Group in the firm’s Orange County office.

Read more about Beineng Zhang
  • Posted in:
    Financial
  • Blog:
    Consumer Finance and Fintech Blog
  • Organization:
    Sheppard, Mullin, Richter & Hampton LLP
  • Article: View Original Source

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