A recent federal Order is aimed at directing multiple government agencies to evaluate the implications of Artificial Intelligence (AI) within their respective sectors. With varying timelines ranging from 30 to 365 days, the Order necessitates these agencies to implement specified requirements outlined within it.
Impacts on Non-Governmental Entities:
- Federal agencies will likely enforce contractual obligations upon non-governmental entities to align with the Order’s provisions. Statutory powers under the Defense Production Act might also be invoked for national defense and safeguarding critical infrastructure.
- Implications include the introduction of reporting obligations for technology providers (both foundational model providers and IaaS providers), as well as added requirements for entities working with the federal government under contracts.
Key Provisions of the Order:
- AI Safety and Security Standards: Mandatory sharing of safety test results by developers of powerful AI systems with the US government. Foundations models posing risks must notify and share specific test results with the federal government.
- Standards Development and Applicability: The National Institute of Standards and Technology will establish rigorous safety testing standards within 270 days, and the Department of Homeland Security will implement these for critical infrastructure sectors. An AI Safety and Security Board will be set up.
- Biological Synthesis Screening and Content Authentication: Agencies funding life-science projects will create standards for biological synthesis screening. The Department of Commerce will guide content authentication to prevent AI-enabled fraud in official government communications.
- Privacy Protection and Civil Rights: Advocacy for bipartisan data privacy legislation, mitigating discrimination and bias in criminal justice, healthcare, employment, and housing due to AI.
- Consumer Protection and Worker Support: Measures to protect consumers from potential harm due to AI and development of principles for worker benefits amidst AI-driven job displacement.
- Innovation, Competition, and Leadership: Initiatives to drive AI research, attract global AI talent, ensure fair AI marketplace competition, and encourage AI deployment abroad for addressing global challenges.
- Responsible Government Use of AI: Guidance for federal agencies on AI deployment, aimed at improving procurement processes and addressing possible biases.
Support for Organizations: Baker McKenzie, with expertise in data privacy, intellectual property, cybersecurity, trade compliance, and employment, offers strategic advice for organizations involved in AI development. The team provides insights into legal risks, legislative trends, and regulatory proposals, tailored to the needs of your organization’s AI endeavors.
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