Senator Schmitt Renews Bipartisan Push to Support AI, Cloud Computing Innovation

Washington, D.C. — U.S. Senator Eric Schmitt (R-MO) reintroduced the bipartisanProtecting AI and Cloud Competition in Defense Act to ensure that the Department of Defense (DoD)’s procurement of artificial intelligence (AI) and cloud computing tools prioritizes resiliency and competition. The bill encourages competition and levels the playing field, so small and medium-sized start-ups have a seat at the table for Cloud and AI innovation at the DoD. 

“The Department of Defense’s procurement process must encourage competition instead of allowing a select group of companies to dominate the awards process. We must move away from policies that create risk concentration and stifle innovation. This bill puts forward provisions that create opportunities for emerging A.I. defense companies who currently face steep barriers to entry in the DoD ecosystem. I am proud to be leading this bill that promotes competition, as well as encourages innovation so the U.S. can continue to lead A.I.,” said Senator Eric Schmitt. 

Senator Schmitt joined Senator Elizabeth Warren (D-MA) in introducing the bill, which comes as the White House has released new guidelines on AI procurement that encourage federal agencies to avoid vendor lock-in and to ensure that government data is protected and not used to train commercial AI models.

BACKGROUND: 

• Senators Schmitt and Warren first introduced the Protecting AI and Cloud Competition in Defense Act in December 2024. 
• Government contracts play a powerful role in shaping markets. DOD has already awarded $9 billion in contracts to a handful of companies to build its cloud computing network and has requested an additional $1.8 billion for AI programs for fiscal year 2025. The Protecting AI and Cloud Competition in Defense Act ensures that the DOD’s new contracts protect competition in the AI and cloud computing markets, instead of giving an unfair advantage to a few big players. The bill also encourages DOD to consider cloud computing services from multiple providers, so the agency isn’t locked in by a single tech company.
• Specifically, the bill would:
  • Require DoD — when contracting with AI and cloud computing companies that make $50 million or more with DoD annually — to hold a competitive award process, ensure that the government maintains exclusive rights to access and use of all government data, mitigate barriers to entry faced by small businesses and nontraditional contractors, and consider multi-cloud technology unless doing so is infeasible or presents a danger to national security. 
  • Require DoD’s Chief Digital and Artificial Intelligence Office (CDAO) to ensure that government data provided for the purpose of development and operation of AI products to DoD will not be disclosed or used without DoD authorization, and such government data, if stored on vendor systems, has appropriate protections.
  • Require DoD to publish a report every four years on competition, innovation, barriers to entry, and market power concentration in the AI sector, with recommendations for legislative and administrative action.

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