⚖️ Government Approves AI Use

Federal Government Approves Leading AI Vendors for Civilian Agencies

The U.S. government has officially added Google, OpenAI, and Anthropic to a list of approved AI vendors eligible to offer their services to civilian federal agencies. These companies will participate through the Multiple Award Schedule (MAS), a streamlined federal contracting platform that allows agencies to access AI tools via pre-negotiated contracts, removing the need for individual vendor negotiations. The General Services Administration (GSA), which manages MAS, evaluated these companies primarily on security and performance criteria. This move aligns with recent executive orders from the Trump administration aimed at accelerating AI development, including policies to expand data center energy supply and ensure AI tools used by the government are free from ideological bias.

What This Means for AI Adoption in Government

The inclusion of major AI players on MAS signals a strong federal commitment to integrating artificial intelligence within government operations efficiently and securely. By pre-approving vendors, the government reduces administrative hurdles and expedites the adoption of AI-driven tools across agencies. For startup founders, this development underscores the growing importance of security and compliance standards as prerequisites for government contracts. Additionally, the political environment influencing AI procurement highlights the increasing intersection of technology, policy, and ideology — factors that startups must monitor closely when aiming to enter or partner with public-sector markets.

Impact on Startups

Startups developing AI solutions should view the MAS platform as a potential gateway to federal contracts but must prepare to meet stringent security and performance requirements. Understanding federal procurement procedures and aligning product development with regulatory and ideological guidelines will be essential. Founders are advised to invest early in compliance frameworks, data security protocols, and transparent AI practices to position their companies competitively. Furthermore, staying abreast of evolving government AI policies, including executive orders that may impose ideological or ethical constraints, will help startups anticipate shifts that could affect eligibility and market opportunities within the public sector.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more