Contractors should know how to adapt, thrive, and lead in the upcoming artificial intelligence compliance landscape. Professionals are using AI across public and private sectors. It is integral to federal projects in 2026, meaning contractors must know how to utilize it appropriately. Here are ways to handle AI compliance this year.
Why AI compliance matters
AI use is spreading globally, but the United States government is specifically pushing for the adoption of these tools. The use of AI in government settings must be secure, bias-free, trustworthy, and safe. Organizations are developing frameworks to govern their usage and comply with these new regulations.
Various models can monitor companies’ compliance with cybersecurity standards and create reports based on specified criteria. The focus is shifting from manual processes to data-driven results, and contractors must adapt to this new landscape.
AI compliance for contractors
As government organizations increasingly utilize AI, contractors must follow specific rules to meet the new regulations. Below are some key areas to modify when evaluating AI usage.
Risk management framework
Develop a risk management framework to mitigate common risks associated with AI, like data privacy. Break the plan down into simple concepts to ensure each team member understands it. Managing AI risks helps mitigate compliance issues and reduces disruptions when contractors utilize this technology.
A good risk management plan identifies any weaknesses within AI models and the data they handle. Contractors should work toward solutions that lessen vulnerabilities, ensure compliance, and avoid risks.
Transparent AI usage
Contractors should maintain transparency with their AI usage by providing clear documentation on how their models operate. This includes where they get data, the model’s architecture, and multiple performance testing results. It is easier to remain compliant when auditors can easily view how contractors are using their AI tools.
Since AI operates using data-driven technology, another way contractors can practice transparency is by gathering specific statistics about their usage and performance data. The model can retrieve the information itself, but human employees must review it before it is released.
Ethical standards
Ethics with AI is a growing issue that contractors must focus on to remain compliant. They should take steps to prevent harm and ensure fairness when using AI. Bias assessments on models ensure they are not unfairly evaluating reports, employees, or government documents. Additionally, contractors should implement ethical safeguards in AI systems to prevent them from producing favoritism.
Bias is one of the major ethical concerns with utilizing AI in businesses. Compromised models can discriminate against certain parties and make ill-informed decisions. Contractors should ensure all models receive practical anti-bias training to avoid this specific compliance issue.
Data privacy and security
AI systems collect critical data that contractors must request for the client’s and the company’s safety. Contractors may face scrutiny if they fail to handle information appropriately, maintain anonymity, or address cybersecurity. One way to handle data is by separating it into sections on the database, each with a strict password.
Sometimes, models collect data from unknowing users. Contractors must program specific safeguards into AI models to ensure they only gather relevant information. Data in the contracting industry is often sensitive, making this issue even more prevalent.
Foundational business practices
While practicing AI compliance, contractors must also face the fundamentals of the federal marketplace. Having a strong core business strategy, which involves communicating effectively with clients and managing financials, enhances a contractor’s standing. Another method is to utilize new technologies, like AI, to improve business processes and provide innovative solutions to challenges. These practices drive the implementation of AI compliance.
How to implement AI compliance
Contractors must take specific actions to implement AI compliance effectively. The following are a few notable improvements.
Create new roles
Having experts maintain AI models and ensure their compliance is ideal for following regulations. AI ethicists, machine learning specialists, and data scientists are potential new roles. Training existing teams to work with AI is also beneficial.
Use new technology
While AI is a new technology, developers frequently release tools for automating compliance reports. Essentially, contractors can train AI to regulate itself. Humans must monitor the process, but it can lessen some of the weight of AI compliance standards.
Tips for marketing AI compliance
One survey found that 64 percent of people do not want companies to use AI for customer service. However, they appreciate it when they’re open about its use. Contractors can improve their AI compliance marketing by incorporating it into proposals and advertising materials. They can also offer readiness or compliance consulting programs to other organizations, increasing their profit margins. Becoming an AI leader now prepares contractors for the growing business surrounding AI compliance.
AI compliance is vital for contractors
In 2026, AI compliance is at the forefront of the contracting industry. As governments create new laws and push the implementation of AI, contractors must adopt the latest technology to remain relevant. Practicing transparency, ethics, and risk management are all suitable methods to comply with regulations. Companies that adhere to the rules position themselves as the ideal choice.
Zac Amos is the Features Editor at ReHack Magazine, where he covers business tech, HR, and cybersecurity. He is also a regular contributor at AllBusiness, TalentCulture, and VentureBeat. For more of his work, follow him on X (Twitter) or LinkedIn.
TNGlobal INSIDER publishes contributions relevant to entrepreneurship and innovation. You may submit your own original or published contributions subject to editorial discretion.
Featured image: Markus Winkler on Pexels
7 Security risks to consider when implementing AI in your business in 2026