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New Legislation Seeks to Strengthen AI Risk Management in Federal Procurement

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11/03/2023
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New Legislation Seeks to Strengthen AI Risk Management in Federal Procurement

by Richie
11/03/2023
in Compliance, Risk Management

A recently introduced Senate bill is set to enhance federal guidelines governing artificial intelligence (AI) technologies. The move reflects ongoing executive actions aimed at imposing regulations on the rapidly expanding AI industry. In this article, we delve into the details of the Federal Artificial Intelligence Risk Management Act and its implications.

Legislation Overview

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AI in Risk Management: Current Applications, Future Potential, and Limitations

Sponsored by Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.), the Federal Artificial Intelligence Risk Management Act seeks to codify several measures outlined in President Joe Biden’s executive order on AI, signed earlier this week. Moran had previously introduced a similar measure as an amendment to the Senate version of the National Defense Authorization Act, but it was not adopted.

Companion legislation is anticipated to be introduced in the House of Representatives by Representative Ted Lieu (D-Calif.).

Key Provisions

The bill focuses on providing specific AI regulations through various federal entities, including the Office of Management and Budget (OMB) and the National Institute of Standards and Technology (NIST). Key provisions include:

  1. Development of Test and Evaluation Capabilities: NIST is tasked with developing test and evaluation capabilities for federal AI technology acquisitions.
  2. Guidance Issuance: OMB is responsible for issuing guidance to assist federal agencies in implementing NIST’s AI Risk Management Framework in their risk management efforts.
  3. Workforce Initiative: OMB is also required to establish a workforce initiative for federal agencies.
  4. Procurement Operations: The bill mandates the administrator of Federal Procurement Policy and the Federal Acquisition Regulatory Council to ensure that federal offices utilize NIST’s framework in their procurement operations.

The overarching goal of these provisions is to safeguard sensitive data processed through AI-based systems and mitigate inherent risks associated with automated systems.

Protecting the American People

Senator Moran emphasized the importance of applying NIST’s sensible guidelines, which are already being utilized in the private sector, to federal agencies. This ensures that as AI technology is integrated into government functions, it is done so with the aim of protecting the American people.

Moran stated, “AI has tremendous potential to improve the efficiency and effectiveness of the federal government, in addition to the potential positive impacts on the private sector.”

Bipartisan Efforts in AI Regulation

The Federal Artificial Intelligence Risk Management Act is the latest in a series of bipartisan efforts aimed at establishing greater safeguards around the development and utilization of AI. Recent Senate legislation proposed requiring AI developers to include notices for content generated using their systems.

In September, Senators Richard Blumenthal (D-Conn.) and Josh Hawley (R-Mo.) introduced an AI legislative framework designed to serve as a blueprint for enforceable AI protections. Key components of this framework include establishing a licensing regime for AI models, ensuring legal liability for AI-related harms, preventing the proliferation of AI technology to countries like Russia and China, promoting transparency, and protecting consumers.

Stay updated with supply chain news at The Supply Chain Report. Learn more about international trade at ADAMftd.com with free tools.

#FederalAIRiskManagementAct #AIGuidelines #AIGovernance #SenateAIRegulation #NISTAIStandards #OMBWorkforceInitiative #AIProcurementPolicy #AIBipartisanEfforts #AIinGovernment #AITransparency #AIGuidance #AIAcquisitionFramework #ProtectingDataAI #AmericanPublicSafety

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