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The Office of Management and Budget Memorandum M-25-22 assigned new responsibilities to Federal agencies to safeguard intellectual property (IP) rights and government data in AI acquisitions. By October 20, agencies were required to update their acquisition policies and processes to clarify ownership, licensing, and data use in AI-related contracts.

Steffen Jacobsen, Senior Commercial Counsel for the Public Sector, and Yejin Jang, Vice President of Government Affairs at Abnormal AI, led a practical session tailored for agency IT, acquisition, legal, and program officials.

Key Takeaways Included:

• How agencies can meet OMB's new mandates on IP and data ownership

• What rights must the government preserve when data is used to train or fine-tune AI systems

• How to structure contracts to avoid vendor lock-in, with examples of terms that preserve agency flexibility

• Which areas to prioritize in negotiations and which contract terms have less flexibility

• How AI performance is measured and evaluated

• Pitfalls to avoid in vendor negotiations and best practices for preserving agency priorities

The session emphasized that the policies agencies shape today will determine the rules of engagement with AI vendors for years to come. By preparing ahead, agencies can reduce risk, strengthen bargaining power, and ensure long-term control over mission-critical AI systems.