Yesterday, President Trump signed the highly anticipated Executive Order (EO) "Promoting Advanced Artificial Intelligence Innovation and Security," establishing a voluntary framework that allows the federal government to review certain advanced AI models before they are released publicly. The EO also directs federal agencies to strengthen cybersecurity capabilities and work with the private sector to evaluate emerging AI risks.
At first glance, this may seem like an issue that primarily affects major technology companies such as OpenAI, Anthropic, Google, and other developers building frontier AI models. However, government contractors should pay close attention. The EO gives us insight into how the federal government is thinking about AI adoption, cybersecurity, and risk management moving forward.
For contractors that provide technology, cybersecurity, software development, cloud services, or AI-enabled solutions, this EO offers an early look at future agency expectations, which is important as we head into Q4 of the federal government. Here’s what we know so far.
Drafted in response to advancements in new AI models like Anthropic’s Claude Mythos, the AI Innovation and Security EO establishes a voluntary process where AI model developers can provide those models to federal agencies for testing before public release. Participating agencies may receive up to 30 days to evaluate systems for cybersecurity vulnerabilities, national security concerns, and potential impacts on critical infrastructure.
The EO directs multiple agencies, including the Departments of Defense (DoD), Department of Homeland Security (DHS), and Department of the Treasury (TREAS), to coordinate testing and security evaluations.
It’s important to note that for now, the White House stopped short of imposing mandatory licensing requirements or mandatory pre-release reviews. Instead, the framework emphasizes collaboration with the private sector.
The current administration has two concurrent goals—to maintain a competitive advantage of AI over other global leaders, but also reduce cybersecurity and national security risks in AI development.
Due to recent concerns from the defense and intelligence communities on how AI could be used for harmful cyber attacks, the federal government wants to the new Executive Order address those concerns without creating a regulatory structure that could slow innovation.
As we mentioned at the beginning of this blog, many contractors may assume this Executive Order only affects large AI developers, but that’s not true. It’s important as a contractor to keep tabs on regulation changes because they often signal future changes to the Federal Acquisition Regulation (FAR) or the Multiple Award Schedule (MAS) Solicitation if you’re a GSA Schedule contractor.
Over the past two years, federal agencies have focused heavily on AI adoption and experimentation. This new EO on AI innovation and security suggests we’ll see a lot more questions and regulations in AI development related to:
Cybersecurity is not a new regulation by far, in fact federal agencies are increasingly investing in cybersecurity modernization. But we are now seeing it more intertwined with AI.
Even if a solicitation does not specifically reference this Executive Order, agencies may begin asking contractors to explain:
This trend has already been emerging through agency guidance and proposed acquisition policies. The Executive Order reinforces that direction.
For GSA Schedule holders, the EO does not create immediate changes to the Multiple Award Schedule program. There are no new MAS clauses, reporting requirements, or contract modifications tied directly to the Order at this time.
However, GSA is planning on adding an AI clause to the MAS Solicitation soon that would more closely govern how AI is used in GSA Schedule contracts.
Historically, Executive Orders often influence future acquisition policies, solicitation language, and agency requirements. As agencies incorporate AI into federal acquisition, contractors offering software, IT services, cybersecurity solutions, professional services, and emerging technology solutions may see additional scrutiny around AI governance and security practices.
This new AI and other changes such as GSA’s MAS Solicitation Refresh #32 are just two examples of how the federal landscape is constantly changing for government contractors. If you want to stay “in the know” on these updates and future news, check out our weekly blog recap and our monthly govcon newsletter. If you have any questions about how these changes may impact your GSA Schedule, or are interested in contracting with the government, we’re here to help!