The Use of Shadow Artificial Intelligence in Government Contracti
The Use of Shadow Artificial Intelligence in Government Contracti
Publish Date: 2026-06-08 12:35:00
Source Domain: natlawreview.com
Federal contractors should be paying close attention to a growing issue in government procurement: the use of shadow AI and generative artificial intelligence by agency evaluators during proposal evaluations.
As federal agencies increasingly experiment with AI tools in procurement and acquisition processes, evaluators may be using generative AI platforms to summarize proposals, identify strengths and weaknesses, assess compliance, draft technical findings, and assist with source selection decisions. In many procurements, however, the solicitation does not disclose the use of AI-assisted evaluation tools. This creates significant legal and bid protest risks.
When agencies rely on undisclosed or poorly governed AI tools during federal procurement evaluations, contractors may have grounds to challenge the procurement at the Government Accountability Office (GAO) or the U.S. Court of Federal Claims (COFC). AI-assisted evaluations can introduce factual inaccuracies, unstated evaluation criteria, inconsistent analysis, and irrational or non-independent decision-making into the procurement record.
For government contractors, debriefings are becoming increasingly important because they may provide the first indications that evaluators used generative AI during the source selection process.
What Is Shadow AI in Government Contracting?
Shadow AI refers to the unauthorized or unofficial use of artificial intelligence tools by employees without formal agency governance, approval, or oversight. In federal contracting, shadow AI may involve agency evaluators using publicly available or internal AI systems to review proposals or assist with technical evaluations. Evaluators may use generative AI tools to summarize lengthy proposals, compare offerors, draft consensus reports, generate evaluator narratives, identify performance risks, or recommend strengths and weaknesses.
Although evaluators may view these tools as efficiency aids, AI-generated outputs can significantly affect…
