Counsel Commentary: GSA Rolls Out New Standard AI Clause

Shortly after the Department of Defense (DoD) labeled Anthropic as a supply chain risk after a disagreement on restrictions for the DoD’s use of Claude, the General Services Administration (GSA) proposed a new clause establishing that the government has a broad right to use artificial intelligence (AI) systems for any lawful government purpose.  

In his monthly Contract Management magazine column, “GSA Rolls Out New Standard AI Clause,” Rogers Joseph O’Donnell, P.C. shareholder Stephen L. Bacon notes that the clause goes beyond existing federal sourcing standards by prohibiting foreign AI systems and AI components controlled by non-U.S. entities. Bacon also notes that it requires contractors to ensure third-party AI vendors comply with government contract terms, even where those terms conflict with standard commercial licensing agreements.

“The federal government is moving quickly to establish formal standards for AI procurement, and GSA’s proposed clause represents a significant step in that direction,” Bacon writes. ”Contractors and AI model providers should expect that similar standard terms applicable to non-GSA contracts will be established in the near future.”

The article also highlights the proposal’s strict data ownership and intellectual property provisions, which would give the government broad rights over government-generated data and custom AI developments created during contract performance. Bacon further points to concerns surrounding the clause’s “Unbiased AI Principles,” vague compliance standards and undisclosed government testing methodologies, which could create significant operational, legal and financial risks for contractors.

This article was published in the May/June 2026 issue of Contract Management magazine by the National Contract Management Association (NCMA). Access to the full article in NCMA’s online content library is subject to NCMA’s article access policies.

View a PDF of the article here.