Alliance for Digital Innovation Comments on Proposed Government AI System Terms and Conditions

The Alliance for Digital Innovation (ADI) submitted comments to the General Services Administration (GSA) on the proposed Government AI System Terms and Conditions under GSAR Deviation 552.239-700.  ADI shares GSA’s objective of establishing clear, consistent standards for responsible AI acquisition. However, the clause would require contractors to build and maintain a parallel, Government-only product distinct from their commercial product, converting what is nominally a commercial acquisition into a de facto bespoke procurement. Several provisions in the current draft would create compliance burdens that are difficult, if not impossible to reconcile with how commercial AI products are built, licensed, and delivered — potentially limiting the pool of American AI vendors willing or able to participate in GSA Schedule programs or resulting in unintended consequences that are counter to the government’s interests. The clause is particularly likely to deter nascent and emerging AI providers, who are least able to deviate from standard commercial terms and most likely to be sources of cutting-edge innovation.