Donald Trump’s Executive Office has ordered federal agencies to name a chief AI officer, develop strategies for expanding their use of artificial intelligence, and to make the purchase of American AI products and services a chief priority.
The memo from the Office of Management and Budget (OMB) on Tuesday (AEST) puts into effect an executive order Mr Trump signed in his first week at the White House, effectively ending the Biden-era orders aimed at putting safeguards on the use of AI technology.
The memo directs government agencies to implement minimum-risk management practices for high impact uses of AI and to develop implementation policies for GenAI in the next three months.
“Agencies must adopt a forward-leaning and pro-innovation approach that takes advantage of this technology to help shape the future of government operations,” the memo said.
The memo rescinds two orders issued under the former President Joe Biden. One of those had ordered agencies to adopt safeguards to protect people’s rights and ensure transparency and the other had sought to place restrictions on AI acquisitions.
It also orders each federal agency to appoint a Chief AI Officer, both as the responsible executive for AI decision-making and to champion their agency’s AI goals. The Biden-era orders also called the appointment of agency chief AI officers.

In Australia, the guidance for the responsible use of AI in government published by the Digital Transformation Agency calls for agencies to designate an “accountable official” for managing the implementation of AI systems, but does not specify the role as championing the technology.
Enabling innovation is the central theme of the Office of Management and Budget orders, including using the US federal government’s purchasing power to support US AI companies.
While being encouraged to “lean forward on adopting effective, mission-enabling AI”, agencies were told that they must “remove unnecessary and bureaucratic requirements that inhibit innovation and responsible adoption.”
“When choosing to pursue an AI acquisition, agencies should invest in the American AI marketplace and maximise the use of AI products and services that are developed and produced in the United States,” the memo said.
The White House memo included orders specifically aimed at maximising the value of government data in relation to AI, and protecting that data from exploitation by third-party suppliers of AI products and services.
“Agencies should treat relevant data, or improvements to that data – such as cleaning and labelling – as a critical asset for their AI maturity,” and take steps to ensure that contracts with suppliers retain rights to federal data and “retain any improvements to that data,” it said.
The OMB orders are designed to accelerate the adoption of AI practices across the US federal government, encouraging AI innovation and support for American-developed AI technology.
With Reuters
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