Recent developments involving the U.S. Department of Defense (DOD) and Anthropic, the developer of the Claude AI platform, highlight an important consideration for government contractors and subcontractors: AI tools may be subject to contract-specific restrictions or customer requirements.

A federal judge overturned the DOD's designation of Anthropic as a national-security supply-chain risk. However, DOD has continued to raise concerns about Anthropic's use in the Defense Industrial Base. Claude has been used in defense-related environments for activities such as intelligence analysis, document processing, operational planning, logistics, and other mission-support functions, including through systems used by defense contractors.

The DOD's experience also illustrates why government contractors should pay attention to AI-use requirements. DOD has been transitioning classified AI workloads away from Anthropic models, including systems supporting defense-related operations.

For government contractors, AI use is increasingly connected to data security and contract compliance. Before using an AI tool for contract-related work, employees should confirm that the tool is authorized and understand what company, client, government, or other sensitive information may—and may not—be entered into the platform.

What Contractors Should Do

• Review applicable contracts and flow-down requirements for restrictions involving AI tools, software, technology, data, or third-party services.

  
  

• Follow your company's approved AI tools and acceptable-use policies.

  
  

• Do not use Claude or other AI models for government-related work unless their use has been authorized where required.

  
  

• Do not enter sensitive or confidential information into an AI tool unless the tool and the specific use have been approved.

  
  

• When in doubt, ask your contract, security, IT, or management team before using an AI tool for contract-related work.

The DOD-Anthropic dispute is a reminder that requirements affecting AI use can change quickly. Government contractors and subcontractors should rely on their specific contractual, security, and organizational requirements when determining whether and how AI tools may be used.