GSA to Mandate AI Clause Acceptance in 60 Days with Refresh 32

GSA finalized its proposed AI clause, giving Schedule holders 60 days to accept after Refresh 32.

The General Services Administration (GSA) is set to include its newly finalized artificial intelligence clause (GSAR 552.239-7001) in its upcoming Multiple Award Schedule (MAS) Refresh 32. Schedule holders will have 60 days to accept the clause or risk losing their ability to contract with the government.

• The clause mandates that contractors use only "American AI Systems"—AI developed and produced in the United States—for government work.
• Within 30 days of a contract award, all AI systems used for contract performance must be disclosed, including those provided by subcontractors and commercial vendors.
• Contractors are prohibited from using government data to train, fine-tune, or improve their or any third-party AI models for outside customers or commercial benefits.
• The GSA will retain ownership of all "Government Data" and "Custom Developments," while contractors keep rights to AI models themselves.
• Data stewardship obligations are heightened: Contractors must implement "eyes off" handling to minimize human review of government data, and all such reviews must be logged and accessible to government oversight.
• Security and performance incidents related to the use of AI must be reported to the government within 72 hours.
• Government contractors must also ensure compliance with strict "Unbiased AI Principles" around truthfulness, historical accuracy, and neutrality.

Dan Ramish, partner at Haynes Boone, underscores how significant the change is: “This clause is the first acquisition regulation clause that specifically addresses AI systems. It has a lot in there, and it’s very detailed and prescriptive in the requirements it imposes on government contractors and also on service providers.”

GSA confirmed that Refresh 31 would not include the AI clause but that it is on track for inclusion in Refresh 32.