GSA's new AI clause targets vendor lock-in, but enforcement is weak
The General Services Administration added a clause to its AI procurement contracts requiring open export formats and migration-friendly terms. But when AI is bought through integrators and resellers, the government has no privity with LLM suppliers, making the flow-down hard to enforce against OpenAI, Anthropic, Microsoft or SAP.
- GSA exempted ordinary services contractors from the new AI clause
- Portability requirements lack direct liability for LLM suppliers
- Microsoft licensing since 2019 and SAP's API policy restrict data migration
- The author suggests enforcing the terms through FedRAMP
Read next
Business