White House Finalizes AI Risk Management Standards for Federal Agencies, Hinting at Future Guidelines for Private Sector | Seyfarth Shaw LLP

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Seyfarth Synopsis:  The Office of Management and Budget (OMB) finalized its guidance to federal agencies regarding the risk management steps the federal government must take when using artificial intelligence. OMB’s guidance establishes the minimum AI risk management practices federal agencies must follow for “safety-impacting” and “rights-impacting” AI applications and includes a broad list of employment-related applications that are presumed to be “rights-impacting.” The AI risk management practices OMB is requiring for these “rights-impacting” employment applications are broadly consistent with principles that leaders from the Department of Labor and the EEOC have been discussing, and we expect future guidance and “promising practices” from those agencies will closely align with the principles outlined in today’s OMB guidance.

On March 28, 2024, OMB finalized and published Memorandum M-24-10, “Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence.”  This document contains OMB’s guidance to federal agencies regarding the risk management steps the federal government must take for its own use of artificial…

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