What GAO Found The use of artificial intelligence (AI) could help federal agencies carry out key activities in federal small business contracting and research programs, according to a panel of experts convened by GAO. Examples of such activities include conducting market research, reviewing proposals, and preventing fraud. The Small Business Administration (SBA), which coordinates agencies’ Offices of Small and Disadvantaged Business Utilization and oversees agencies’ Small Business Innovation Research and Technology Transfer programs, also could use AI to support activities such as analyzing data submitted by agencies and helping to draft annual reports. But these potential AI uses also carry risks, including inaccurate outputs and data privacy or security concerns, according to experts and literature. Agencies also may face barriers in adopting AI, including lack of staff with technical expertise and a cumbersome process for authorizing new technologies. Prior to 2025, SBA had a number of AI use cases—specific scenarios in which AI is designed, developed, procured, or used—in various stages of adoption. In March 2025, SBA paused all AI use to review compliance with recent executive orders and reflect updated agency priorities. SBA officials stated that AI use will restart after revised AI policies are implemented. As of April…
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Artificial Intelligence: Uses and Risks for Small Business Contracting and Innovation Research
Source: US GAO Reports — US Government, Public Domain