GovCon Intelligence

AI Legal Risks and the Anti-DEI Executive Order


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Jackson Moore and I recorded a GovCon Intelligence episode on location in Wilmington, North Carolina. We were on a panel there last week, moderated by Sue Kranes at the North Carolina Military Business Center Construction Summit. Jackson is a partner at Smith Anderson in Raleigh and recently has been writing about AI-related developments in GovCon. We talked about AI hallucinations and more broadly about how using AI can come back to haunt parties in litigation. Then we went back to the topic of our panel: the recent executive order on racially discrimination DEI and IBM’s $17 million settlement.

Links

Jackson Moore at SmithLaw.com

NCMBC Summit

Turning Chats Into Trial Exhibits: Litigation Risks of Generative AI Use (smithlaw.com)

You Can’t Spell Sanction without “A” and “I”: When Unchecked AI Hallucinations Result in Court Sanctions (smithlaw.com)

Whitting v. City of Athens (6th Cir. 2026)

AI Hallucinations database (damiencharlotin.com)

Appeals of Huffman Construction LLC (ASBCA Oct. 23, 2025)

U.S. v. Heppner (S.D.N.Y. Feb. 17, 2026).

Steve Koprince: What aspects of federal contracting AI is most likely to get wrong

Proposed GSA clause 552.239-7001, Basic Safeguarding of Artificial Intelligence Systems

Executive Order on Addressing DEI Discrimination by Federal Contractors

IBM Pays $17 Million to Resolve Allegations of Discrimination Through Illegal DEI Practices (justice.gov)

00:00 Welcome From Wilmington

00:26 Meet Jackson Moore

00:55 GovCon Law Practice Overview

01:55 AI In GovCon Law

02:55 Hallucinations And Sanctions

05:59 Verifying Case Citations

07:31 Sharing Data With AI

10:01 Protective Orders And AI

12:33 Discovery Of AI Chats

15:55 AI Gets GovCon Details Wrong

18:26 GSA Proposed AI Clause

23:12 Neutrality And Bias Questions

25:49 DEI Executive Order Fallout

28:29 False Claims Act Enforcement

32:08 Class Deviations And Litigation

36:15 How To Reach Jackson

36:30 Closing Thanks



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GovCon IntelligenceBy Sam Le