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ARTICLE · 19 DECEMBER 2023

AI Policies Needed To Avoid Liability In Government Contracting

Wiley's Nick Peterson and Craig Smith examine key considerations for contractors when developing, implementing, and enforcing AI use policies to minimize FCA exposure.

United StatesGovernment, Public Sector

Wiley's Nick Peterson and Craig Smith examine key considerations for contractors when developing, implementing, and enforcing AI use policies to minimize FCA exposure.

Generative AI's potential is vast, and could allow contractors to leverage generative AI tools to help draft proposals, set pricing, analyze procurement data, or even predict potential risks in projects.

Contractors must evaluate carefully about when and how to use generative AI tools. If a contractor fails to have adequate policies and processes in place, it could expose the contractor to liability under the False Claims Act.

Generative AI is a subset of artificial intelligence that focuses on creating and generating content, such as text, images, or other data. It's generally understood that generative AI tools are imperfect. Generative AI's very nature, relying on machine learning algorithms and huge datasets, introduces complexities that may lead to errors or biases in the output.

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