Can Government Contractors Use AI? A Legal Guide to AI Compliance and Disclosure Requirements

Short summary

A legal guide explaining that government contractors may use AI tools like ChatGPT, Claude, Copilot, and Gemini unless specifically prohibited by contract, solicitation, or agency policy. The FAR imposes no blanket AI ban, but program-specific restrictions are emerging, such as the FY2026 NDAA barring DoD contractors from using certain China-based AI systems like DeepSeek. Contractors must evaluate data sensitivity, cybersecurity obligations, and disclosure requirements, and remain ultimately responsible for contract performance regardless of AI assistance.

• •Government contractors can use AI unless a contract, solicitation, or agency policy prohibits it — no government-wide ban exists
• •FY2026 NDAA Section 1532 bars DoD contractors from using certain covered AI including DeepSeek
• •Contractors remain responsible for performance quality and must match AI tool selection to data sensitivity and security requirements

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