In a memorandum issued June 27, 2018, Deputy Secretary of Defense Patrick Shanahan ordered the establishment of the Joint Artificial Intelligence Center (“JAIC”) within DoD.  The JAIC will report to DoD Chief Information Officer (“CIO”) Dana Deasey and has the “overarching goal of accelerating the delivery of AI-enabled capabilities, scaling the Department-wide impact of AI, and synchronizing DoD AI activities to expand Joint Force advantages.”  With the creation of the JAIC, the DoD has acknowledged that the AI “effort is a Department priority,” and one to which government contractors should pay attention.

The JAIC will be the primary organizational component responsible for coordinating and executing DoD’s 2018 Artificial Intelligence Strategy, which was delivered to Congress in June. Although an unclassified version of the report is not out yet, the memorandum elaborates upon what is in the report by stating that “A new approach is required to increase the speed and agility with which we deliver AI-enabled capabilities and adapt our way of fighting.”

The memorandum lays out four steps that the JAIC will take to achieve its overarching goal and execute the 2018 Artificial Intelligence Strategy.  First, it will launch “large-scale efforts to apply AI to a cluster of closely related, urgent, joint challenges.”  These National Mission Initiatives (“NMI”) “will be developed in partnership with the Military Departments and Services, Joint Staff, CCMDs, other DoD components, and mission owners.”  Second, the JAIC will “establish a Department-wide common foundation for execution in AI that includes the tools, shared data, reusable technologies, processes, and expertise to enable rapid delivery and Department-wide scaling of AI-enabled capabilities.”  Third, the JAIC will “strengthen partnerships, highlight critical needs, solve problems of urgent operational significance, and adapt AI technologies” through collaboration within the government and with industry and other strategic partners.  Fourth, the JAIC will work with the Office of the Secretary of Defense (“OSD”) “to develop a governance framework and standards for AI development and delivery.”

Regarding the fourth step in particular, the Defense Innovation Board (“DIB”) recently hosted a meeting on July 11, 2018 to further explain the mission and overarching goal of the JAIC and outline how the DIB will assist the JAIC in its efforts.  Given DoD’s recent experience with Google and the company’s pledge to forgo pursuit of future AI work with DoD under Project Maven, the DIB will assist in the development of AI principles for defense.  These principles will focus on, but not be limited to, ethical development and use, humanitarian considerations, and short-term and long-term AI safety.

Within 30 days of the issuing of the memorandum, the DoD CIO must report back “with a list of initial NMIs to be launched within the next 90 days, proposed FY18 and FY19 resourcing plans, and personnel assignment needs.”  Development of the NMI list will involve consultation with various groups “and should include the Algorithmic Warfare Cross-Functional team, Project Maven, which will be transitioned to the JAIC.”  The memorandum emphasizes the need to find funding for the JAIC beyond FY19 and notes that issues for future consideration include “initiation of additional NMIs; any resources needed for the JAIC collaboration with industry or academia, as appropriate, and the JAIC coordination across the whole of government and with our international partners.”

Additionally, the JAIC is intended to assist in the development of a common framework across DoD and “DoD and OSD components . . . are highly encouraged to collaborate with the JAIC.”  For now, any AI initiative that totals more than $15 million annually must be coordinated with the JAIC.  Ultimately, Shanahan states in the memorandum that the JAIC will help the military “to swiftly introduce new capabilities and effectively experiment with new operational concepts in support of DoD’s warfighting missions and business functions.”

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Photo of Susan B. Cassidy Susan B. Cassidy

Susan is co-chair of the firm’s Aerospace and Defense Industry Group and is a partner in the firm’s Government Contracts and Cybersecurity Practice Groups. She previously served as in-house counsel for two major defense contractors and advises a broad range of government contractors…

Susan is co-chair of the firm’s Aerospace and Defense Industry Group and is a partner in the firm’s Government Contracts and Cybersecurity Practice Groups. She previously served as in-house counsel for two major defense contractors and advises a broad range of government contractors on compliance with FAR and DFARS requirements, with a special expertise in supply chain, cybersecurity and FedRAMP requirements. She has an active investigations practice and advises contractors when faced with cyber incidents involving government information, as well as representing contractors facing allegations of cyber fraud under the False Claims Act. Susan relies on her expertise and experience with the Defense Department and the Intelligence Community to help her clients navigate the complex regulatory intersection of cybersecurity, national security, and government contracts. She is Chambers rated in both Government Contracts and Government Contracts Cybersecurity. In 2023, Chambers USA quoted sources stating that “Susan’s in-house experience coupled with her deep understanding of the regulatory requirements is the perfect balance to navigate legal and commercial matters.”

Her clients range from new entrants into the federal procurement market to well established defense contractors and she provides compliance advices across a broad spectrum of procurement issues. Susan consistently remains at the forefront of legislative and regulatory changes in the procurement area, and in 2018, the National Law Review selected her as a “Go-to Thought Leader” on the topic of Cybersecurity for Government Contractors.

In her work with global, national, and start-up contractors, Susan advises companies on all aspects of government supply chain issues including:

  • Government cybersecurity requirements, including the Cybersecurity Maturity Model Certification (CMMC), DFARS 7012, and NIST SP 800-171 requirements,
  • Evolving sourcing issues such as Section 889, counterfeit part requirements, Section 5949 and limitations on sourcing from China
  • Federal Acquisition Security Council (FASC) regulations and product exclusions,
  • Controlled unclassified information (CUI) obligations, and
  • M&A government cybersecurity due diligence.

Susan has an active internal investigations practice that assists clients when allegations of non-compliance arise with procurement requirements, such as in the following areas:

  • Procurement fraud and FAR mandatory disclosure requirements,
  • Cyber incidents and data spills involving sensitive government information,
  • Allegations of violations of national security requirements, and
  • Compliance with MIL-SPEC requirements, the Qualified Products List, and other sourcing obligations.

In addition to her counseling and investigatory practice, Susan has considerable litigation experience and has represented clients in bid protests, prime-subcontractor disputes, Administrative Procedure Act cases, and product liability litigation before federal courts, state courts, and administrative agencies.

Susan is a former Public Contract Law Procurement Division Co-Chair, former Co-Chair and current Vice-Chair of the ABA PCL Cybersecurity, Privacy and Emerging Technology Committee.

Prior to joining Covington, Susan served as in-house senior counsel at Northrop Grumman Corporation and Motorola Incorporated.