Biden Administration Implements Regulations on Artificial Intelligence – Major Tech Companies to be Impacted

President Joe Biden is issuing a comprehensive executive order to regulate artificial intelligence, marking his most significant move to control a rapidly advancing technology that has generated both apprehension and praise. The extensive order, unveiled on Monday, establishes fresh guidelines for safeguarding security and privacy in AI, which will have wide-ranging implications for businesses. Tech giants like Microsoft Corp., Amazon.com Inc, and Alphabet Inc.’s Google will be instructed to subject robust AI models to safety assessments and share the findings with the government prior to making them available to the public.

The rule, which takes advantage of the U.S. government’s position as a top customer of big tech companies, is designed to review technology that poses potential national or financial security risks, as well as health and safety. It likely only applies to future systems, not those already on the market, the administration official said.

The initiative also creates the infrastructure for watermarking standards for AI-generated content such as audio or images, often referred to as “deepfakes.” The Commerce Department is asked to help develop measures to combat public confusion about authentic content. Bloomberg’s board previously reported on the draft regulation.

The administration’s operation is based on voluntary commitments to safely adopt artificial intelligence, which more than a dozen companies accepted during the summer at the request of the White House and its plan “AI Bill of Rights”, a guide to safe development and use.

All 15 companies that signed those pledges, including Adobe Inc. and Salesforce Inc., will join the president’s signing ceremony at the White House on Monday with members of Congress.

Vice chairman and president Brad Smith said in a statement that Microsoft views the order as “another critical step forward in managing AI technology.”

Biden’s directive comes ahead of a trip by Vice President Kamala Harris and industry leaders to a summit on artificial intelligence risks hosted in the United Kingdom, giving him a chance to showcase the U.S. plan on the world stage.

The U.S. has earmarked $1.6 billion for artificial intelligence in fiscal year 2023, which is expected to grow as the military releases more details about its spending, according to Bloomberg government data.

“This executive order sends a critical message: The artificial intelligence used by the United States government is responsible artificial intelligence,” Arvind Krishna, chairman and CEO of International Business Machines Corp., said in a statement.

Against Bias

Biden also called for guidelines to protect Americans from algorithmic deception in housing, government benefits programs and by federal contractors.

In a January filing, the Justice Department warned that companies that sell algorithms to screen potential tenants are liable under the Fair Housing Act if they discriminate against black applicants. Biden directed the department to establish best practices for investigating and prosecuting such AI-related civil rights violations, including the criminal justice system.

The order also asks immigration officials to ease visa requirements for foreign talent who want to work for American AI companies.

The administration should ensure that the order is implemented effectively and in a timely manner, said Jordan Burris, who previously worked on the US government’s technology and cyber initiatives, including the Trump administration’s AI order.

“There’s an incredible level of complexity involved in the next steps to ensure that it actually achieves the intended outcome,” said Burris, Socure’s current vice president and director of public sector strategy. Resources, education and training are needed to implement the guidelines, he said.

While the administration touts its latest move as the government’s most powerful AI regulatory advance yet, Congress may go further.

Biden has urged lawmakers to pass the privacy legislation, although he does not yet have a position on how Congress should approach comprehensive regulation of artificial intelligence, the administration official said.

Senate Majority Leader Chuck Schumer called for the United States to spend at least $32 billion in the coming years to promote artificial intelligence research and development.

Lawmakers have held briefings and met with tech figures, including Meta Platforms Inc.’s Mark Zuckerberg and OpenAI’s Sam Altman, to better understand the technology before drafting the legislation. Venture capitalists Marc Andreessen and John Doerr have also participated in closed doors.