Dynamo Facilitates WH OMB Memo M-25-21 | Enabling Federal AI Leaders to Advance AI Innovation Without Sacrificing Security and Trust

Overview

On April 3, 2025 (Memo M-25-21), the White House Office of Management and Budget (OMB) released its Memorandum for “Accelerating Federal Use of AI through Innovation, Governance, and Public Trust.” This call to action requires Federal agencies to accelerate the procurement, adoption, and deployment of AI, without sacrificing security and trust.

Leading AI models frequently hallucinate and leak confidential data, exposing organizations, governments, and citizens to costly risks. Acknowledging this, the Memo includes a core mandate for agencies to identify certain AI risks affiliated with high-impact AI use cases, and to implement minimum risk management practices during adoption and deployment. 

Dynamo AI’s test, evaluation, and guardrail products enable the Memo’s risk mitigation strategies, accelerating scalable, low-cost, secure AI across Federal agencies. We are committed to helping Federal leaders embed risk-management across their AI stack and at scale, so that agencies can confidently deploy AI solutions with greater assurance, accuracy, audibility, and lower cost.

Read on for an overview of the Memo and core examples of Dynamo’s relevant capabilities.

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Dynamo Drives Key Tenets of the Federal AI Strategy

Memo M-25-21 guides the implementation of the Federal government’s AI Strategy. Dynamo drives key tenets of the Strategy: our capabilities directly support and align with the recommendations and requirements regarding AI implementation and risk management, across Section 2, Section 4, and Section 7 of the Memo.

Section 2 of the Memo on “Driving AI Innovation” requires that agencies develop organization-wide AI strategies, a core component of which includes the implementation of “testing” and “continuous monitoring” capabilities to manage AI risks, including information security and privacy (2.a.ii.A). Dynamo AI’s test, evaluation, and guardrails product suite facilitates this process across government-approved environments: on-premise, in private cloud, or even at the tactical edge. 

Additionally, Section 2 highlights the importance of “Enabling an AI-Ready Federal Workforce” (2.3). Dynamo AI’s guardrail and auditing tools equip technical experts and non-technical staff to manage the security and compliance of their AI systems, supporting the advancement of AI literacy and knowledge across agencies.

Section 4 on “Fostering Public Trust in Federal Use of AI” calls on agencies to implement “minimum risk management practices” for “high-impact” AI applications by April 15, 2026. AI applications qualify as “high-impact” if they serve as the main basis for consequential decisions or actions affecting an individual’s rights, liberties, safety, or access to critical services (See Definition within Section 5). 

With DynamoEval and DynamoGuard, agencies can successfully implement the risk-management requirements for high-impact AI applications, as required in Section 4 of the Memo:

With Dynamo pre-deployment testing and real-time guardrail technologies, agencies can customize their risk-management practices according to the high-impact use case, maintaining oversight over AI applications across a wide range of missions.

Section 7 on “Methods of Understanding AI Risk Management” outlines seven factors that can “create, contribute to, or exacerbate” risks from AI use. Dynamo AI’s proactive and real-time risk-management capabilities directly mitigate each of these risks, unlocking Federal AI adoption. See below for an overview of how DynamoEval and DynamoGuard can protect against these risks.

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Conclusion

At Dynamo, we believe that scalable, low-cost risk management technologies are a core catalyst for AI adoption and trust, especially in high-impact scenarios. Our global partnerships and deployments with Fortune 500 companies, across highly regulated and critical sectors, are a testament to this process of AI enablement. 

As US agency leaders look to meet OMB M-25-21’s AI adoption and risk-management mandate, Dynamo AI is here to help embed privacy, security, and compliance across the Federal AI stack. 

For more information about Dynamo AI’s solutions for the Federal government and contracting options, see our current offerings available via Carahsoft and DoD's Tradewinds marketplace.

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