Definition
A mandatory contract requirement — proposed in the US as GSAR clause 552.239-7001 — that any company selling AI or LLM-based services to the US federal government must meet specific data safeguarding, supply chain transparency, and performance standards for those AI systems.
Why it matters
Once finalised, this clause becomes a non-negotiable condition embedded in all US government AI contracts, immediately affecting any vendor supplying AI to federal agencies and setting a compliance benchmark that broader regulated industries are likely to follow.