February 27, 2024
CPM 2024-06
Memorandum for Heads of Executive Departments and Agencies
From: Kiran A. Ahuja
Director
Subject: Pay Flexibility, Incentive Pay, and Leave and Workforce
Flexibility Programs for Artificial Intelligence (AI), AI-enabling,
and Other Key Technical Employees
On October 30, 2023, the President signed Executive Order (EO) 14110 titled, “Safe,
Secure, and Trustworthy Development and Use of Artificial Intelligence.” Section 10 of
the EO addresses the advancement of AI across the Federal Government and directs a
number of actions to increase AI talent in the Federal Government. Subsection
10.2(d)(iv) requires that the U.S. Office of Personnel Management (OPM):
(iv) within 120 days of the date of this order, as appropriate and permitted by
law, issue guidance for agency application of existing pay flexibilities or
incentive pay programs for AI, AI-enabling, and other key technical positions to
facilitate appropriate use of current pay incentives.
In support of EO 14110, OPM is issuing the attached guidance for agencies on pay
flexibility, incentive pay, and leave and workforce flexibility programs for AI, AI-
enabling, and other key technical employees. The guidance summarizes the
flexibilities and programs available to agencies to recruit and retain AI and related
talent, including information on where to find additional resources. These flexibilities
may also be used by agencies to recruit and retain talent more broadly, and may
therefore be used for other positions of need within agencies.
Agencies can use most of the flexibilities and authorities summarized in the attached
guidance without OPM approval. For the few flexibilities that require OPM approval—
special rates, critical pay, and waivers of the recruitment, relocation, and retention
incentive payment limits—we stand ready to assist agencies and respond to their
requests for enhanced compensation tools.
Questions
Agency headquarters-level human resources offices may contact OPM at
paypolicy@opm.gov. Component-level human resources offices must contact their
