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GAO-26-107828 1 (May 4, 2026)

handle is hein.gao/artsr0001 and id is 1 raw text is: Why This Matters Key Takeaways Artificial intelligence (AI) has significantly advanced in recent years, with new types, capabilities, and risks emerging at a rapid pace. Federal agencies' use of Al has increased accordingly, more than doubling from 2023 through 2024, according to the U.S. Chief Information Officers Council. In July 2025, we reported that selected agencies increased their use of generative Al-which can create novel text, images, audio, or video-by about nine-fold over the same period. Most agencies, including the Small Business Administration (SBA), are required to publicly report Al use cases-specific scenarios in which Al is designed, developed, procured, or used. All federal agencies with procurement powers, except for SBA, are required to have an Office of Small and Disadvantaged Business Utilization (OSDBU) to advocate for small businesses in contracting. In addition, 11 federal agencies participate in the Small Business Innovation Research (SBIR) program, and six of those agencies also participate in the Small Business Technology Transfer (STTR) program, both of which provide assistance to small businesses for research and development and help to bring innovative technologies to market. SBA coordinates and collaborates with agency OSDBUs and oversees SBIR/STTR programs. Industry, academia, and government have shown interest in applying Al to agency activities in these areas, in part due to recent Al advancements. We were asked to review issues related to federal agencies' use of Al in OSDBU and SBIR/STTR activities. This report discusses potential Al use by SBA, agency OSDBUs, and SBIR/STTR programs, and examines SBA's public reporting of its Al use and development. Al could help SBA, agency OSDBUs, and agency SBIR/STTR programs carry out key activities by reducing staff burden, saving time, improving fraud prevention, and enabling analysis of large volumes of information, according to an expert panel we convened. However, panelists and literature also noted risks, including the potential for inaccurate outputs, data privacy and security issues, and human overreliance on Al. Including human review in Al systems can mitigate some of these potential risks, according to panelists. Barriers to agency Al adoption include lack of staff with technical expertise and a cumbersome technology authorization process, according to panelists and literature. SBA has not consistently reported an inventory of its Al uses, though it is required to do so annually. We recommend that SBA establish policies to ensure compliance with this requirement. Page 1 GAO-26-1 07828 Al in Small Business Contracting Page 1 GAO-26-107828 Al in Small Business Contracting