AI as a Strategic Focus in the Early Phase of Trump’s Second Term
During the initial year of Donald Trump’s second presidential term, artificial intelligence (AI) emerged as a central agenda item for the administration. Even prior to his inauguration, the adoption of generative AI technologies within federal agencies was accelerating rapidly, experiencing a ninefold increase between 2023 and 2024.
Accelerated AI Adoption Through OneGov Contracting
Under the General Services Administration’s (GSA) OneGov contracting initiative, numerous federal agencies gained streamlined access to cutting-edge AI models. These agreements typically offer AI services at a nominal fee-often $1 or less during the first year-highlighting the administration’s intent to expedite AI integration across government operations.
Complex and Fragmented AI Regulatory Landscape
Despite the enthusiasm for AI deployment, federal agencies face a challenging regulatory environment. A recent Government Accountability Office (GAO) report identified 94 distinct AI-related mandates that agencies must comply with, scattered across multiple oversight bodies without a unified governance structure.
Diverse Oversight Bodies and Overlapping Requirements
AI governance in the federal government is overseen by at least ten executive-branch entities, including the Office of Management and Budget (OMB), Office of Science and Technology Policy (OSTP), Department of Commerce, GSA, and the National Science Foundation. These organizations enforce compliance based on a combination of five AI-specific laws, several executive orders, and three key guidance documents, creating a complex web of regulations.
Challenges in AI Implementation Within Federal Agencies
The multitude of AI regulations complicates agencies’ efforts to effectively deploy AI solutions. While the GAO has not explicitly stated whether the regulatory burden is excessive or if a consolidated federal AI framework is warranted, previous analyses suggest that agencies are indeed struggling under the weight of these requirements.
Obstacles Beyond Resource Limitations
Federal agencies report that their difficulties with generative AI (GenAI) adoption are not primarily due to insufficient funding or lack of viable use cases. Instead, challenges such as limited computing infrastructure, concerns over algorithmic bias and hallucinations, and the sheer volume of regulatory constraints are significant barriers. Notably, three agencies have received failing marks for not following established IT best practices.
Key Players and Risks in Government AI Procurement
- Major AI providers like Google, OpenAI, and Anthropic have secured broad contracts to supply AI technologies to the U.S. government.
- Emerging companies such as Perplexity are also seeking discounted AI offerings tailored for federal use.
Kevin Walsh, GAO’s Director of IT and Cybersecurity, emphasized that while AI holds promise for enhancing federal operations, it also introduces significant risks, including potential misuse in cyberattacks, fraud, and privacy breaches through deanonymization of sensitive data. Walsh refrained from commenting on the current fragmented regulatory framework governing AI.
GAO’s Ongoing Efforts to Strengthen AI Governance
The GAO has been proactive in recommending improvements to federal AI oversight. Its initial report, published four years ago, proposed a framework to promote accountability and responsible AI use within government programs. A follow-up report in 2023 assessed agency compliance with AI regulations, revealing limited progress in implementing GAO’s recommendations.
As of mid-2025, only three agencies had adopted four of the 35 recommendations issued to 19 federal entities, underscoring the slow pace of regulatory adherence and the need for more effective enforcement mechanisms.
