UPDATE – MARCH 2026:
This article remains accurate following changes in U.S. federal AI policy. While the Biden-era OMB AI guidance is still publicly available, the Trump administration repealed it in January 2025. Since then, U.S. federal AI policy has continued shifting toward accelerating AI adoption and reducing regulatory barriers.
In April 2025, the Office of Management and Budget (OMB) issued revised memoranda (M-25-21 and M-25-22), replacing prior Biden-era guidance and directing federal agencies to prioritize innovation, streamline procurement, and expand AI deployment across government operations. Agencies must still designate Chief AI Officers and maintain internal governance structures, but the updated guidance emphasizes operational efficiency, national competitiveness, and responsible use rather than prescriptive risk controls.
In December 2025, President Donald Trump signed Executive Order 14365 establishing a national framework to coordinate federal AI policy and strengthen U.S. leadership in artificial intelligence. The order created new coordination mechanisms, including a Department of Justice AI Litigation Task Force, and directed agencies such as the FCC and FTC to review federal and state regulatory alignment.
These changes reflect a broader shift from the earlier risk-mitigation-focused approach toward a policy framework centered on innovation, infrastructure expansion, and maintaining U.S. leadership in global AI development. Despite these policy adjustments, many structural elements introduced in earlier federal AI governance efforts—such as agency-level AI leadership roles and internal governance programs—remain in place and continue shaping how federal agencies deploy and oversee artificial intelligence.
ORIGINAL NEWS STORY:
White House Directs Federal Agencies to Prioritize Responsible AI Governance and Innovation
U.S. Vice President Kamala Harris revealed that the White House Office of Management and Budget (OMB) unveiled its inaugural government-wide policy aimed at mitigating the risks associated with AI while harnessing its benefits. This announcement marks a pivotal step in fulfilling a crucial aspect of President Joe Biden’s momentous AI Executive Order, which mandated comprehensive actions to bolster AI safety and security, safeguard privacy, promote equity and civil rights, ensure consumer and worker protection, foster innovation and competition, and elevate American leadership worldwide.
Federal agencies have diligently executed all the tasks outlined in the Executive Order, including the completion of the 150-day actions. Further reinforcing the Biden-Harris Administration’s commitment to spearheading responsible AI innovation. The recent unveiling of OMB’s groundbreaking policy underscores the administration’s unwavering dedication.
Federal Agencies Must Implement Safeguards
The OMB policy required federal agencies to implement safeguards for AI systems by December 1, 2024.
These safeguards included:
- Risk and impact assessments
- Testing protocols
- Ongoing monitoring of AI systems
The goal was to protect Americans’ rights and safety in areas such as healthcare, education, housing, and employment where AI systems may influence critical decisions.
Public Transparency and Oversight
The policy also emphasized transparency in government AI deployments. Agencies were required to:
- Publish inventories of their AI systems
- Identify systems that could affect public rights or safety
- Explain how they manage associated risks
Agencies were also expected to report metrics related to sensitive AI systems and disclose any exemptions along with the reasoning behind them.
To strengthen internal governance, each agency was required to:
- Designate a Chief AI Officer
- Establish an AI Governance Board
These leadership roles were intended to improve accountability and ensure responsible oversight of AI systems used by federal agencies.
Building Capacity and Encouraging Innovation
To support responsible AI deployment, the federal government committed to hiring at least 100 AI professionals by the summer of 2024. Agencies were encouraged to explore how AI could help address major challenges such as climate change and public health while maintaining appropriate safeguards.
The OMB also sought to remove outdated policies that made it difficult for agencies to adopt modern AI tools effectively.
Need Help?
Keeping track of the ever-changing AI landscape can be tough. Especially if you have questions and concerns about how it will impact you. Don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance.
