The prospects of leveraging the benefits of generative AI in drafting proposals, setting pricing, data analysis, and predicting operational risks are vast and largely untapped by government contractors. Irrespective of its potential, contractors should be mindful of the existing laws and regulations that may impose liability, especially in cases of failure to establish robust policies and processes around its use. An illustrative example of such laws is the False Claims Act.
Generative AI, a subset of artificial intelligence that focuses on generating new content such as text, images and data analysis, while incredible in its potential, often presents inaccuracies and biases due to the sheer volume of data and the complex machine learning algorithms at play. Erroneous or biased outcomes produced by AI tools could potentially find their way into submissions to the government leading to violations of the False Claims Act (FCA).
The FCA is a federal law that imposes civil liability conditioned on the knowingly submission of false or fraudulent claims or showing reckless disregard for the truth in submissions to the government. Essentially, this could involve any behavior that substantially deviates from or shows indifference to what a reasonable person would consider truthful. Therefore, whether the inaccuracies were knowingly or recklessly introduced via generative AI tools will be key in determining liability under the FCA.
Productive steps for contractors to take in order to avoid such liabilities involve drafting clear and detailed policies surrounding AI tool use. Key considerations should include the type of AI tools permitted, who is allowed to use them, their permitted uses, and how steps can be retraced for accountability. Vetting and constant validation of AI tools, establishing standards for employee use of AI tools, outlining clear use-cases for the tools, and creating provisions for auditing past tool use will be crucial in creating these policies.
Besides policy-making, equal focus should be placed on building understanding of generative AI tools among decision-makers. Collaborating with the legal department and IT professionals can provide the added benefits of better compliance, insights into potential pitfalls, and staying abreast of technological advancements. Contractors making these efforts and updates stand to enjoy the full potential of AI while minimizing their exposure to undue risks.