Orders and memos set expectations for federal agency use of AI

President Trump issues orders and memos he says will spur US agencies into action and maintain global dominance.

Announcing that federal agencies must adopt a “forward-leaning and pro-innovation approach” that takes advantage of technology to shape the future of government operations, the Trump administration has signed orders, issued memoranda and rescinded Biden-era orders to promote greater use of artificial intelligence (AI).

President Donald Trump signed Executive Order 14179 in January, removing what he called “barriers to American leadership in AI.” The directive was followed by a 25-page memorandum from the Office of Management and Budget (OMB) earlier this month, outlining a sweeping mandate for agencies to cut red tape and adopt AI in ways that improve public services and protect civil liberties.

That April directive includes a mandate for federal agencies to name chief AI officers and develop strategies for an expansion of the government’s use of AI, specifically rescinding Biden-era orders intended to place safeguards on the technology.

These AI officers will oversee AI adoption, ensure compliance with risk management protocols, work to build an AI-ready workforce, mitigate risks for higher-impact AI, and advise on agency AI investments and spending. And they must be chosen within 60 days.

The Office of Management and Budget directed government agencies to implement minimum-risk management practices for high-impact uses of AI in the coming months.

Other action items in the memo’s fact sheet include:

  • Healthcare implications: The memo highlights “high-impact” AI use cases, subject to heightened oversight – including tools used in diagnosis, treatment decisions, health insurance eligibility, and care allocation in public programs.
  • Buy American and use open-source code: In line with the executive order’s “Buy American” policy, agencies are directed to prioritize AI tools developed in the US and avoid vendor lock-in. They must also release custom-developed code and data assets as open source, except where security or privacy concerns apply.
  • GenAI policies by 2026: Agencies must develop formal policies for GenAI use by early 2026.
  • Upskilling and hiring: The memo encourages agencies to train current staff and recruit experienced AI professionals, emphasizing demand for talent with both machine learning expertise and regulatory compliance knowledge.

As an example of how a few federal agencies are already harnessing the advantages provided by AI, the White House notes that the Veteran’s Affairs Office uses AI to support the identification and analysis of pulmonary nodules during lung cancer screening exams. The AI functionality improves detection of these nodules, assisting clinicians with life-saving diagnoses, it says.

And the Department of Justice is using AI to better understand the global drug market and the impact of illicit drugs on communities and individuals to further drug trafficking investigations and protect the American public.

Speaking about the federal use of AI, Greg Barbaccia, who has been named Federal Chief Information Officer, said: “Federal agencies have experienced a widening gap in adopting AI and modernizing government technology, largely due to unnecessary bureaucracy and outdated procurement processes. OMB’s new policies demonstrate that the government is committed to spending American taxpayer dollars efficiently and responsibly, while increasing public trust through the Federal use of AI.”