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AI Transformation Brief – April 2025

Author(s): Bill Wong

The latest AI announcements from the White House Office of Management and Budget, US DOGE Service, NIST, US AI Safety Institute, Cohere, Nvidia, Telus, European Union, and the Canadian Federal Government.

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AI Transformation Brief

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In This Issue AI in the News | AI 91ÖÆÆ¬³§ Highlights | Vendor Spotlight | Upcoming Events & Resources

AI IN THE NEWS

NIST removes use of responsible AI, AI safety, and AI fairness in their agreement with the AI Safety Institute

On March 14, 2025, Wired magazine was one of the first organizations to report that NIST had ordered its scientists that partner with the US Artificial Intelligence Safety Institute to update their Cooperative 91ÖÆÆ¬³§ and Development Agreement (CRDA) by removing references to "Responsible AI, " "AI safety," and "AI fairness." The intent of removing these references is to direct more emphasis on AI innovation.

ANALYST ANALYSIS

The removal of these terms is directly attributed to the new administration's Executive Order 14179: Removing Barriers to American Leadership in Artificial Intelligence. This executive order has a clause that emphasizes the development of AI should be "free from ideological bias or engineered social agendas."

However, this clause will likely not be in the best interest of either AI organizations or users/consumers of AI applications. Users have consistently expressed concerns that AI may be biased, unfair, unsafe, and lacking an organization willing to be responsible for the application's outcomes. Also, for any firm wishing to do business with the EU, they will have to reconcile and update their application to comply with the EU AI Act's focus on removing bias, ensuring fairness, safety, and accountability.

US White House releases guidance on AI for federal agencies

On April 3, 2025, the White House Office of Management and Budget (OMB) released two memoranda: Accelerating Federal Use of AI Through Innovation, Governance, and Public Trust (M-25-21), and Driving Efficient Acquisition of Artificial Intelligence in Government (M-25-22).

ANALYST ANALYSIS

Some of the major deliverables and delivery dates required by each agency as a result of the memorandums include:

  • Agencies must develop their AI strategy (180 days)
  • Identify a Chief AI Officer (60 days)
  • Implement minimum risk management practices (365 days)
  • Develop a generative AI policy (270 days)
  • Update internal policies on IT infrastructure, data cybersecurity, and privacy (270 days)

What is surprising is that there is no mention of leveraging NIST or their AI Risk Management Framework to accelerate the implementation of risk management practices. Instead, literally no guidance is provided, which will lead to inconsistent implementations across agencies and puts to question the future of NIST.

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A I IN THE NEWS
Citizens for Responsibility and Ethics in Washington (CREW) files lawsuit against US DOGE service and OMB (Office of Management and Budget) to be more transparent

On April 8, 2025, Reuters released an article stating that DOGE is using AI to monitor internal communications of at least at one federal agency (the EPA) to identify employees who may have opposing views to the current administration and their policies, according
to two people with knowledge of DOGE's operations in this matter.

Signal was also identified as being used so that messages would be deleted without leaving an audit trail.

Kathleen Clark, an ethics specialist, stated that DOGE would be acting unlawfully if every message was not backed up.

As a result, CREW filed a lawsuit at DOGE and OMB to disclose their records.

ANALYST ANALYSIS

The following reported activities support the Reuters story:

  • The EPA released a statement that it was "looking at AI to better optimize agency functions and administrative efficiencies" and denied it was using AI "as it makes personnel decisions in concert with DOGE."
  • The EPA statement did not directly address whether it was using AI to surveil their employees. The White House, DOGE and Musk have refused to comment on these claims..
  • On March 10, 2025, a federal judge ruled that the US DOGE Service is likely subject to the Freedom of Information Act (FOIA)
  • On March 20, 2025, the judge denied DOGE's motion to reconsider his ruling and modify or rescind his order. The US administration responded to the litigation by claiming that DOGE is not subject to FOIA laws due to the president's designation of the entity as a "free-standing component of the Executive Office of the President."

CREW is now waiting to see if DOGE complies with the judge's latest ruling. If AI-powered surveillance becomes an acceptable practice or the new normal, it is doubtful federal employees will feel at ease expressing their true perspective for any given matter.

The EU AI Continental Action Plan

On April 8, 2025, The European Union (EU) continued its investments in AI and announced its latest initiative, the introduction of the EU AI Continental Action Plan.

The goal of this plan is to develop the EU to be a global leader in AI. The investments announced are in the following five areas:

  • Large-scale AI data and computing infrastructure
  • Access to large and high-quality data
  • Developing AI adoption in strategic EU sectors
  • Strengthening AI skills and talents
  • Regulatory simplification

ANALYST ANALYSIS

Highlights of the EU AI investment plan in the five areas include:

  • Network of 13 AI factories for AI startups, industry, and researchers
  • Establish five AI gigafactories, each with 100,000 AI accelerators to support the development of future AI models
  • €20 billion to drive private investment in these gigafactories
  • Creation of data labs for each factory to develop high-quality data
  • Promote adoption of AI into healthcare, public sector, and strategic sectors
  • Recruit AI subject matter experts to the EU
  • Simplify compliance with the establishment of the AI Act Service Desk

While these investments are significant, they fall behind US investments made by the private sector. However, given the changing geo-political landscape, this action plan is more than just about driving technology. The EU is demonstrating just how important AI is and will be, and that the status quo going forward is not desirable nor acceptable.

The Canadian Sovereign AI Strategy

On March 18, 2025, TELUS, in collaboration with NVIDIA, announced that it plans to build Canada's leading Sovereign AI Factory.

On March 20, 2025, the Canadian federal government announced finalization of $240 investment into Cohere, a well-known Canadian AI model provider.

ANALYST ANALYSIS

The Canadian Sovereign AI Compute Strategy has three major components:

increasing the domestic compute capacity, supporting the Canadian AI ecosystem, and driving economic growth. This will enable organizations to ensure their AI models and AI data will be stored locally. This will safeguard Canadian digital assets and intellectual property while providing Canadian organizations access to leading-edge research and infrastructure to develop and deliver made-in-Canada solutions.

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