OMB Compliance

OMB compliance refers to adherence to guidance and regulations issued by the Office of Management and Budget, a White House office that sets policy for how federal agencies operate and procure technology. For enterprises working with the U.S. government or receiving federal contracts, OMB compliance is essential because it dictates requirements for data security, AI system transparency, and vendor management. Key directives like the recent executive order on AI governance and standards for federal AI procurement can create binding obligations that flow down to private sector contractors and suppliers.

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EnforcementUS2026-09-30

SBA's AI Fraud Pilot Never Classified as High-Impact, OIG Finds

The SBA's Office of Inspector General found that a Palantir-powered AI fraud detection pilot for COVID-19 loan programs was never classified as a high-impact use case under OMB guidance. As a result, required safeguards including impact assessments, human oversight mechanisms, and borrower appeals processes were never put in place. The OIG issued six recommendations, including establishing a formal process for identifying and documenting high-impact AI use cases.

federal AI governance high-impact AI fraud detection OMB compliance Palantir OIG enforcement risk classification