The New Era of AI Regulation: Understanding the Biden Administration's Executive Order

Artificial Intelligence (AI) has rapidly become a transformative force in our society, revolutionizing industries and impacting our daily lives. Recognizing both the potential and risks associated with AI, the Biden administration has taken a step forward by issuing an AI Executive Order. This executive order marks a milestone in AI regulation, aiming to ensure that America helps lead the way in harnessing the promise of AI while addressing its potential risks.

Setting New Standards for AI Safety and Security

As AI systems continue to evolve and become more powerful, it is crucial to prioritize safety and security. The executive order mandates that developers of the most advanced AI systems must share the results of safety tests and critical information with the federal government. By doing so, the government can assess the safety of these systems before they are released to the public. This measure is particularly focused on future generations of AI models, rather than current consumer-facing tools.

To further enhance AI safety, the National Institute of Standards and Technology (NIST) will establish standards, tools, and tests for AI systems. These measures will attempt to ensure that AI systems are safe, secure, and trustworthy. The Department of Homeland Security and the Departments of Energy will collaborate to evaluate potential cybersecurity risks posed by AI systems, including those related to critical infrastructure.

Protecting Against Emerging Risks

The executive order recognizes the need to address emerging risks associated with AI. In particular, it aims to protect against the misuse of AI in engineering dangerous biological materials. New standards for biological synthesis screening will be developed to mitigate the potential risks posed by AI-generated materials. Agencies funding life-science projects will be required to adhere to these standards as a condition for federal funding.

Additionally, the Department of Commerce will roll out guidance to ensure that all AI-generated content, including audio, imagery, video, and text, is “watermarked”. This will enable individuals to distinguish between content created by humans and content generated by AI, helping to combat deep fakes.

Advancing Equity and Civil Rights

The use of AI has the potential to exacerbate discrimination and bias in various domains, including justice, healthcare, and housing. To address these concerns, the executive order outlines several actions. Federal agencies will receive clear guidance on preventing the use of AI algorithms that may perpetuate discrimination. The Department of Justice and Federal civil rights offices will collaborate to combat algorithmic discrimination and establish best practices for investigating and prosecuting civil rights violations related to AI.

Furthermore, the executive order emphasizes the importance of fairness in the criminal justice system. Best practices will be developed to ensure that AI is used responsibly in sentencing, parole and probation, risk assessments, surveillance, crime forecasting, predictive policing, and forensic analysis.

Protecting Americans' Privacy

The proliferation of AI technologies has raised concerns about the privacy of individuals' personal data. The executive order emphasizes the need to protect Americans' privacy in the context of AI. Congress is called upon to pass bipartisan data privacy legislation that safeguards the privacy of all Americans, with a particular focus on children's privacy. Whether this actually happens with our current dysfunctional congress remains to be seen, since they have been unable to pass any privacy legislation so far (unlike the European Union and a number of US state governments, for example).

To accelerate the development and use of privacy-preserving techniques, federal support will prioritize the advancement of cutting-edge AI technologies that preserve individuals' privacy. The National Science Foundation will collaborate with a Research Coordination Network to promote the adoption of privacy-preserving technologies across federal agencies.

Ensuring Responsible Government Use of AI

The executive order recognizes the potential benefits of AI in improving government operations and services. However, it also acknowledges the risks associated with AI deployment, such as discrimination and unsafe decision-making. To ensure responsible government use of AI, the executive order directs agencies to establish clear standards for AI use, protect individuals' rights and safety, and strengthen AI deployment.

To expedite the acquisition of AI products and services, the executive order calls for more rapid and efficient contracting procedures. It also emphasizes the importance of hiring AI professionals across government agencies to enhance AI capabilities and knowledge.

Promoting Innovation and Competition

MAny US companies have been at the forefront of AI innovation, and the executive order aims to maintain a leadership position. To encourage AI research, the National AI Research Resource will be piloted, providing researchers and students with access to key AI resources and data. Grants for AI research in vital areas such as healthcare and climate change will also be expanded.

The executive order promotes a fair, open, and competitive AI ecosystem. Small developers and entrepreneurs will receive technical assistance and resources to commercialize AI breakthroughs. The Federal Trade Commission will be encouraged to exercise its authority to help ensure a level playing field for competition.

Advancing American Leadership Abroad

Recognizing that AI challenges and opportunities are global in nature, the executive order emphasizes the need for international collaboration. The State Department, in collaboration with the Commerce Department, will lead efforts to establish robust international frameworks for the responsible use of AI. This will involve bilateral, multilateral, and multistakeholder engagements to ensure the safe and trustworthy deployment of AI worldwide.

The executive order also underlines the importance of advancing AI standards and promoting the responsible development and deployment of AI abroad. By doing so, the United States seeks to address global challenges and promote sustainable development while mitigating risks to critical infrastructure.

The new executive order on AI regulation is a step forward in ensuring the responsible development and deployment of AI technologies. By setting new standards for safety and security, protecting privacy, advancing equity and civil rights, and promoting innovation and competition, the Biden administration aims to position the US as a leader in the AI landscape. As AI continues to shape our future, it is crucial to strike a balance between harnessing its potential and addressing its risks, ultimately benefiting society as a whole.

Michael Fauscette

Michael is an experienced high-tech leader, board chairman, software industry analyst and podcast host. He is a thought leader and published author on emerging trends in business software, artificial intelligence (AI), generative AI, digital first and customer experience strategies and technology. As a senior market researcher and leader Michael has deep experience in business software market research, starting new tech businesses and go-to-market models in large and small software companies.

Currently Michael is the Founder, CEO and Chief Analyst at Arion Research, a global cloud advisory firm; and an advisor to G2, Board Chairman at LocatorX and board member and fractional chief strategy officer for SpotLogic. Formerly the chief research officer at G2, he was responsible for helping software and services buyers use the crowdsourced insights, data, and community in the G2 marketplace. Prior to joining G2, Mr. Fauscette led IDC’s worldwide enterprise software application research group for almost ten years. He also held executive roles with seven software vendors including Autodesk, Inc. and PeopleSoft, Inc. and five technology startups.

Follow me @ www.twitter.com/mfauscette

www.linkedin.com/mfauscette

https://arionresearch.com
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