
AI governance is becoming a procurement issue because the Pentagon is increasingly relying on bilateral agreements rather than statutes to set rules for military AI use[1]. This framework, often called regulation by contract, shifts interpretive authority to the government, leaving enforcement dependent on negotiated terms that may lack democratic accountability or institutional durability[1].
Conflicts arise when vendors attempt to impose safety guardrails that limit military applications, leading the Pentagon to designate non-compliant companies as supply chain risks[1][4].
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