Watchdog Says: DoD Needs Department-Wide AI Acquisition Guidance

On June 29, 2023, the Government Accountability Office (GAO) released its second report^[1] on Department of Defense (DoD) artificial intelligence (AI) acquisition efforts.  This latest report examines the DoD’s lack of formal AI acquisition guidance and identifies key principles from the private sector that can be applied to the DoD’s AI acquisition efforts. 

Although the DoD has designated AI as a top modernization priority and continues to allocate considerable spending to develop AI tools and capabilities (e.g., $1.1 billion in fiscal year 2023), the GAO found that the DoD has not yet issued department-wide guidance for AI acquisitions or solidified plans to develop such guidance.  The GAO similarly found that although various military services and DoD components have developed their own informal AI acquisition resources, none have issued service-specific implementing guidance. 

• For example, the Air Force co-published an AI Acquisition Guidebook with the Massachusetts Institute of Technology in 2022; the Defense Innovation Unit created several AI worksheets to help developers align their AI projects with the DoD’s ethical AI principles; and the Office of the Chief Digital and AI Officer developed the Tradewind AI Projects User Guide to assist DoD personnel with AI acquisitions. However, these resources are “informal and internal documents that . . . do not constitute guidance that establishes component-wide policy.”

The GAO also analyzed responses provided by 13 private companies to identify key factors that the private sector considers when acquiring AI capabilities.  The GAO ultimately identified 31 unique factors that companies consider and grouped these into five categories: (i) understanding mission needs; (ii) making a business case; (iii) tailoring contracting approach; (iv) testing and evaluating proposed solutions; and (v) planning future efforts.

The GAO makes four recommendations in its report.  First, the GAO recommends that the DoD prioritize establishing department-wide AI acquisition guidance, including leveraging the key private sector factors identified in the report.  After the DoD issues department-wide guidance, the GAO recommends that the Army, Navy, and Air Force establish service-specific guidance that includes oversight processes and clear goals for AI acquisitions.  Without such guidance, the GAO warns that the DoD “is at risk of expending funds on AI technologies that do not consistently address the unique challenges associated with AI and are not tailored to each service’s specific needs.”

Contractors should be on the lookout for DoD AI acquisition guidance in the near future as DoD’s approach may provide key factors to consider when acquiring or selling AI capabilities.  C&M continues to monitor these developments.