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The US AI Executive Order and What It Means for Enterprise AI Governance in 2026
President Biden's 2023 Executive Order on AI established federal requirements that have reshaped enterprise AI governance expectations in the US. The 2026 state of play — what agencies have implemented, what procurement requirements mean for federal contractors, and what comes next.
Key Takeaways
The Biden Executive Order on AI (October 2023) directed federal agencies to develop sector-specific AI guidance — by 2026 most major agencies have issued guidance that creates de facto compliance expectations for their regulated sectors.
Federal procurement requirements for AI safety and security apply to contractors and subcontractors — companies selling AI products or services to the US federal government face NIST AI RMF alignment requirements.
NIST's AI Risk Management Framework (AI RMF 1.0) and its sector-specific profiles have become the de facto voluntary standard for US enterprise AI governance — alignment with the AI RMF is increasingly expected by regulators, enterprise buyers, and investors.
The Trump administration (from January 2025) has modified the Biden AI policy but has not reversed core safety and governance requirements — agency-specific AI guidance issued under the EO remains operative in most cases.
State AI laws are filling the gap left by the absence of comprehensive federal AI legislation — California's executive order, Colorado's AI Act (enforcement stayed), Illinois's AI in hiring law, and Texas's AI in business law create a complex state compliance map.
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What the Executive Order established and what survived
President Biden's Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (October 2023) was the most comprehensive federal AI governance action in US history. It directed more than 50 actions across federal agencies, established reporting requirements for AI developers training large models, directed NIST to develop AI safety guidelines, and created sector-specific AI governance requirements across healthcare, financial services, national security, and other domains.
The Trump administration that took office in January 2025 revoked the Biden EO and issued its own AI executive order focusing on removing barriers to AI development and maintaining US leadership. However, the agency guidance issued under the Biden EO — including NIST's AI RMF profiles, healthcare AI guidance from HHS, financial services guidance from Treasury, and sector-specific frameworks — has largely remained operative. Federal agencies continue to implement their AI governance programs, and the regulatory expectations established under the Biden EO have become embedded in agency practice regardless of the change in executive direction.
Federal procurement requirements: what contractors need to know
Federal procurement requirements for AI are increasingly significant for companies that sell products or services to US government agencies. The FAR (Federal Acquisition Regulation) has been updated to include AI-related requirements for some procurement categories, and agency-specific acquisition rules have created additional requirements. The practical implications for federal contractors: AI products sold to federal agencies must meet specified security and safety standards; AI used in contract performance may be subject to disclosure requirements; and the human oversight requirements applicable to government AI use create obligations for contractors whose AI products are used by federal agencies in regulated contexts.
NIST AI RMF alignment is increasingly a de facto procurement requirement — not always explicitly required, but expected as evidence of AI governance maturity in proposal evaluation and contract management. Federal contractors that have implemented NIST AI RMF-aligned governance programs are better positioned in competitive procurements and in contract management contexts where AI governance is scrutinised.