Does Using AI on a Government Contract Put Your Trade Secrets at Risk? What Defense Contractors Need to Know

Artificial intelligence is moving into government contract performance.

• AI now supports scheduling, logistics, and production planning on federal contracts.

Defense contractors are asking a critical question.

• Does using AI on a Navy or other government contract give the government rights to your proprietary systems, methods, or data?
• The short answer is no. The real risk lies elsewhere.

Vague AI transparency and explainability clauses can quietly expand disclosure obligations.

• This contract language can erode trade secret protections that have existed for decades.

This video explains how government IP rights apply to AI-assisted performance and identifies the exposure points that general counsel need to know about.

• Key actions include defining deliverables precisely, managing explainability requests without revealing proprietary logic, and treating AI workflows as intellectual property assets.