December 23, 2024
This week decoded
With House and Senate last-minute passage of a Continuing Resolution (CR) to keep the government funded until March 2025, Congress adjourned for the remainder of the 118th Congress. The initial bipartisan CR agreement included AI-related provisions, such as reauthorization of the National Telecommunications and Information Administration (NTIA) and parts of the TAKE IT DOWN ACT to criminalize non-consensual intimate imagery, which were ultimately stripped from final CR text.
The final days of the 118th Congress brought the release of a significant number of AI-related reports, including from the House Bipartisan Task Force on Artificial Intelligence, Congressional Budget Office (CBO), Senate Homeland Security Permanent Subcommittee on Investigations (PSI), House Judiciary Select Subcommittee on the Weaponization of the Federal Government, and House Administration.
While there is less than a month remaining in the Biden Administration, work continues on AI-related policies. The Departments of Treasury and Energy, DOJ Inspector General, and OMB released reports on AI-related actions, and Politico reported the White House hosted a meeting this week of “high-ranking officials at the Energy, Defense, Labor and Commerce departments, along with senior White House officials” to consider an executive action to “open federal lands to data centers, let data centers exceed pollution limits and given them priority access to available power supply.”
The Trump Administration transition named top White House roles in emerging tech policy.
Read more below
Congress
Hearings
- Last week
- On December 18, the House Administration Committee held a hearing on Prohibiting Foreign Interference in Elections, in which artificial intelligence was raised as a tool to identify illicit finance and digital identity was discussed to improve identification systems.
- On December 18, the Senate Judiciary Subcommittee on Intellectual Property held a hearing on the RESTORE Patent Rights Act, in which artificial intelligence and quantum patents were discussed.
- Upcoming
- The 119th Congress will convene on January 3, 2025.
Legislation
- Sens. Mitt Romney (R-UT), Jack Reed (D-RI), Jerry Moran (R-KS), Angus King (I-ME), and Maggie Hassan (D-NH) introduced S. 5616, the Preserving American Dominance in AI Act which would establish the Artificial Intelligence Safety Review Office within the Department of Commerce to defend frontier models against misuse by foreign adversaries looking to exploit the technology for nefarious purposes. (Text)(One-pager)
- Sen. Mark Warner (D-VA) introduced S. 5620, a bill to require the Government Accountability Office to conduct a study on the use of commercial-off-the-shelf products and artificial intelligence technologies by the Internal Revenue Service. (Text)
- Reps. Darrell Issa (R-CA), Jay Obernolte (R-CA), and Ben Cline (R-VA) introduced the Preventing Abuse of Digital Replicas Act (PADRA), which would prohibit the voice, image, and likeness of individuals from being used commercially in unauthorized ways. (Text)(Press release)
- Rep. Mark Green (R-TN) introduced H.R. 2594, the China Technology Transfer Control Act, which would require the Department of Commerce to impose restrictions on the export of certain national interest technology or intellectual property to China. (Text)
Correspondence
- Sens. Sheldon Whitehouse (D-RI), Brian Schatz (D-HI), Peter Welch (D-VT), Ed Markey (D-MA), and Elizabeth Warren (D-MA) wrote a letter to President Joe Biden, Energy Secretary Jennifer Granholm, EPA Administrator Michael Regan, and senior White House officials requesting they reconsider issuing an executive order to fast track construction of data centers powering artificial intelligence technology. (Letter)
- Reps. Raúl Grijalva (AZ-07) and Jesús “Chuy” García (IL-04) sent a letter to Secretary of Homeland Security Alejandro Mayorkas, Chief Information Officer Eric Hysen, and Office of Management and Budget (OMB) Director Shalanda Young regarding the use of artificial intelligence by the Department of Homeland Security (DHS) and its subagencies in decision-making in whether to deport, detain and separate families, grant citizenship, and protect from persecution. (Letter)
- House Appropriations Ranking Member Rosa DeLauro (D-CT) sent a letter to congressional leadership regarding concerns Elon Musk “may have upended the government funding process to remove a provision that would regulate U.S. investments in China.” (Letter)(Press release)
Reports
- The House Bipartisan Task Force on Artificial Intelligence released its report on guiding principles and recommendations “to advance America’s leadership in AI innovation responsibly.” (Report)(Press release)
- The Congressional Budget Office (CBO) released a report Artificial Intelligence and Its Potential Effects on the Economy and the Federal Budget on economic impacts of AI technology on the U.S. economy and federal government. (Report)
- The Senate Homeland Security Permanent Subcommittee on Investigations (PSI) released a majority staff report The U.S. Technology Fueling Russia’s War in Ukraine: Examining the Bureau of Industry and Security’s Enforcement of Semiconductor Export Controls regarding “how the Department of Commerce’s Bureau of Industry and Security (BIS) has failed to enforce semiconductor export controls, leading to the continued appearance of American-manufactured technology in Russian weapons used in the war in Ukraine and in China’s Artificial Intelligence systems.” (Report)(Press release)
- The House Judiciary Select Subcommittee on the Weaponization of the Federal Government issued a majority staff report Censorship’s Next Frontier: The Federal Government’s Attempt to Control Artificial Intelligence to Suppress Free Speech on “threats to the free and open development of AI, identifies the free speech risks associated with the federal government’s current involvement in AI development, and recommends approaches that Congress should take to protect Americans’ fundamental First Amendment rights.” (Report)
- The Committee on House Administration released its final 2024 Flash Report on Artificial Intelligence (AI) to “provide an update on the use of AI technology by House offices and Legislative Branch agencies, as summarized by their response letters sent to the Committee on House Administration.” (Report)(Press release)
Biden-Harris Administration
Department of Treasury
- The Office of the Comptroller of the Currency (OCC) issued a request for information on “services to support the operation and maintenance of GenAI tools developed by the OCC provided by contractors with existing Government vehicles.” The comment period closes January 8, 2025. (RFI)
- Treasury released a report Artificial Intelligence in Financial Services, Report on the Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector, which summarizes key themes from responses to its Request for Information earlier in 2024 and provides recommendations. (Report)
Department of Energy (DOE)
- DOE released a report 2024 United States Data Center Energy Usage Report, finding “While significant energy efficiency improvements in data center design and operation have occurred over the past decade, the expansion of data center services into areas that require new types of hardware, such as AI and cryptocurrency, has ended the era of generally flat data center energy use. Most notably the recent rapid growth in accelerated servers has caused current total data center energy demand to more than double between 2017 and 2023, and continued growth in the use of accelerated servers for AI services could cause further substantial increases by the end of this decade.” (Report)
Department of Justice (DOJ)
- The Office of the Inspector General released a report entitled Audit of the DEA’s and FBI’s Efforts to Integrate Artificial Intelligence and Other Emerging Technology Within the U.S. Intelligence Community, finding “significant administrative barriers to the accelerated adoption of AI” and recommending needs assessments and reporting. (Report)
White House
- The Office of Management and Budget (OMB) released a 2024 Federal Agency Artificial Intelligence (AI) Use Case Inventory, a list on GitHub of 1,757 AI use cases across U.S. Federal agencies. (GitHub)(FedScoop)
Export-Import Bank of the United States (EXIM)
- EXIM Chair Reta Jo Lewis delivered remarks during the International Economic Forum of the Americas’ (IEFA) Conference of Paris and, “following a discussion on artificial intelligence during the IEFA’s Annual Board of Governors meeting, Chair Lewis shared the importance of partnerships to foster innovation within sectors that are critical to national and global security and trade.” (Press release)
Trump – Vance Transition
- The Trump Administration transition named Michael Kratsios as Director of the White House Office of Science and Technology Policy (OSTP) and Assistant to the President for Science and Technology; Dr. Lynne Parker as Executive Director of the Presidential Council of Advisors for Science and Technology (PCAST); Bo Hines as Executive Director of the new Presidential Council of Advisers for Digital Assets (which the Trump Administration also calls the Crypto Council), and Sriram Krishnan as Senior Policy Advisor for Artificial Intelligence at OSTP.
Noteworthy Quotes and Events
ADMINISTRATION
Department of Homeland Security (DHS)
- DHS Secretary Alejandro Mayorkas said in an interview with the Financial Times about the European “adversarial” approach to regulating AI, “Disparate governance of a single item creates a potential for disorder, and disorder creates a vulnerability from a safety and security perspective.” (FT)(PYMNTS.com)
White House
- White House National Security Advisor Jake Sullivan was interviewed by Ian Bremmer on the state of national security, saying about AI, “I think the big American technology companies have done a quite remarkable job in driving innovation forward in artificial intelligence. You see it with Google, you see it with Microsoft, you see it with Meta. Like, having major American technology companies with capital to deploy and ambition to deploy has pushed the edge of artificial intelligence in ways that have given the United States a competitive edge and a real lead. That is a national asset. It is. Now, on the other hand, America’s technological edge has always rested on not just having big tech companies, on having startups and a very competitive, very mixed ecosystem. And so, one of the risk factors I see is making sure that we are continuing to nurture and ensure that these companies can come forward, the little guys, to produce new innovations and new technological solutions. So, that’s one issue. Second issue is that we need to, on the one hand, balance between ensuring that the most advanced AI at the frontier continues to be generated, produced, so to speak, in the United States so that we’re not outsourcing it to other countries and we’re not trading one form of dependence for another, but on the other hand, we’re allowing this technology to be diffused globally so that America maintains its technological leadership elsewhere. How you strike that balance, I think, is extremely challenging. It’s something we’re focused on right now and the next administration is going to have to focus on as well.” (Remarks)
Department of Commerce, National Institute of Standards and Technology (NIST)
- NIST will hold a virtual meeting of the National Artificial Intelligence Advisory Committee on January 28, 2025 to report working group findings, identify actionable recommendations, and receive public briefings. (Registration)
- NIST will hold a meeting of the Visiting Committee on Advanced Technology on February 12-13 to update on major programs at NIST, safety, and strategy planning; and to discuss initial observations, findings, and recommendations for the 2024 VCAT Annual Report.
Department of State
- Secretary of State Antony Blinken participated in a UN Security Council Session on Artificial Intelligence on December 19.
CONGRESS
Congressional Hispanic Caucus AI Roundtable
- Congressional Hispanic Caucus (CHC) Chairman-elect Adriano Espaillat (D-NY) hosted a roundtable with industry representatives and advocates the impact of Artificial Intelligence (AI) on Housing and Financial Services policies. He said, ““AI has the potential to revolutionize our society, but it must be developed and implemented responsibly,” stated Espaillat. “Our discussions set the foundation for an inclusive AI future that addresses the unique needs of Latino communities while emphasizing U.S. AI competitiveness, AI science, workforce issues, and managing national AI policies initiatives.” (Press release)
House Bipartisan AI Task Force Report
- Speaker Mike Johnson (R-LA) said, “Because advancements in artificial intelligence have the potential to rapidly transform our economy and national security, Leader Jeffries and I established the Bipartisan Task Force on Artificial Intelligence to ensure America continues leading in this strategic arena. Developing a bipartisan vision for AI adoption, innovation, and governance is no easy task, but a necessary one as we look to the future of AI and ensure Americans see real benefits from this technology.” (Press release)
- Democratic Leader Hakeem Jeffries (D-NY) said, “The development and safe adoption of artificial intelligence holds great promise to make a positive difference in the lives of the American people, and Congress has an important role in bringing these benefits to fruition. At the same time, we must ensure that appropriate guardrails are in place to prevent bad actors from exploiting this transformative technology.” (Press release)
- Rep. Jay Obernolte (R-CA) said, “It has been my honor to lead the House AI Task Force in producing this detailed, forward-thinking, and bipartisan report. It is our hope that this report will inform the Congress and the American people on the advantages, complexities, and risks of artificial intelligence. The report details a roadmap for Congress to follow to both safeguard consumers and foster continued U.S. investment and innovation in AI.” (Press release)
- Rep. Ted Lieu (D-CA) said, “The bipartisan House AI Task Force report provides a foundation both to ensure that America leads in AI innovation and to ensure that we have appropriate guardrails to protect Americans. This substantive report is the result of conversations with experts, extensive research, and analysis among Task Force members and will hopefully serve as a starting point to tackle pressing issues involving artificial intelligence. Collaborating across party lines to find consensus is not easy, and that is especially true for something as far-reaching and complex as AI. Despite the wide spectrum of political views of Members on our Task Force, we created a report that reflects our shared vision for a future where we protect people and champion American innovation. We have made our best efforts based on the information we have, but with the rapid pace of change in both AI software and hardware, we are fully aware that we don’t know what we don’t know. This initial report is only the first step.” (Press release)
- Rep. French Hill (R-AR) said, “There is no doubt that the use of AI can make both the public and private sectors more efficient and effective. In the financial services industry, the use of AI can result in greater fraud detection and prevention, enhanced and streamlined customer service, and less costly back-office operations. In my view, two guiding principles should guide adoption. First, there should be a ‘human in the loop’ when using AI enhanced technology. Second, private sector firms should disclose and document how AI is being utilized when using AI in a customer facing or back-office efficiency activity. Company management should be able to ‘show their work’ and certify to their internal and external compliance officials that they are in full compliance with U.S. laws and regulations. The benefits of AI are immense, and the private and public sectors should have the flexibility to safely and soundly experiment with AI and enhance performance on behalf of our nation’s citizens. That is why Senator Mike Rounds (R-SD), Senator Martin Heinrich (D-NM), Rep. Ritchie Torres (D-NY), and I introduced the AI Innovation in Financial Services Act, which establishes regulatory sandboxes for AI experimentation at various financial government agencies. The AI Task Force’s report discusses justifiable concerns about American individual privacy, as well as the vulnerabilities faced by Americans when confronted by illicit or fraudulent uses of AI. It is critical that both the public and private sectors provide enhanced training and education about the scrutiny necessary to avoid illegal or manipulative confrontations, such as deep fakes, confusing results because of hallucinations and cyber theft. As we have consistently documented in the House Financial Services Committee, I believe we need a nationwide privacy law that facilitates consumers protecting their own Personally Identifiable Information (PII) and their right to own and control their own data.” (Press release)
- Rep. Don Beyer (D-VA) said, “This report is a series of timely, productive, bipartisan recommendations on artificial intelligence, one of the most pressing issues of our time. The report issues warnings about potential pitfalls in AI use, which I am proud to see includes a section on implications for civil rights and civil liberties, including harmful bias and discrimination. The report also highlights the need for model transparency in AI uses across sectors including government and health care, and stresses the importance of digital literacy. It also recommends codifying the National AI Research Resource (NAIRR), an end that would be accomplished with bipartisan legislation, the CREATE AI Act, that I am proud to co-lead. This report is a roadmap for policymakers, including the upcoming Congress, to meet the national imperative for response to the emergence of new challenges posed by AI. I thank our House leadership, the Task Force co-chairs and my colleagues on the committee for their faithful diligence in crafting these policy recommendations. With this Task Force, we offer our colleagues a reminder that we can still do big, important things in a bipartisan way.” (Press release)
- Rep. Bill Foster (D-IL) said, “As a PhD physicist and chip designer who first programmed neural networks at Fermi National Accelerator Laboratory in the 1990s, I’ve been tracking the exponential growth of AI capabilities for decades, and I’m pleased Congress is beginning to take action on this issue. I’m proud of the bipartisan work we did on the Task Force under the leadership of Chairman Jay Obernolte and Co-Chair Ted Lieu. I’m especially pleased that the report included findings on the importance of a secure digital identity infrastructure, which is an essential element for protecting people against harmful deepfake impersonations. I’m also glad that the report recommended maintaining support for the research and innovation driving this technology, especially at our national laboratories. While this report is an important first step, there is a great deal of work that lies before us. I look forward to continuing to work across the aisle in the new Congress to turn the report’s findings into meaningful AI legislation, ensuring our nation is able to both harness the potential of AI and protect against the national security and societal dangers this technology poses.” (Press release)
- Rep. Brittany Pettersen (D-CO) said, “Artificial intelligence has the potential to enhance the lives of Americans, but it also poses serious threats – from fraud and identity theft to election integrity and more. After months of bipartisan collaboration, I’m proud to help release this report which will serve as a blueprint for Congress to enact policies that help harness the potential of this emerging technology while ensuring strong guardrails and consumer protections. This report is an important step toward ensuring Congress meets the moment, and the United States remains a global leader in AI.” (Press release)
- Rep. Valerie Foushee (D-NC) said, “This report is a critical first step towards ensuring that Congress can properly address advances in emerging AI technologies and maintain a thoughtful long-term vision for AI that betters our society. During my time with the Task Force, I have been proud to champion several key priorities outlined in this report, including broadening participation in AI research, development, and education, protecting civil rights and liberties, and assessing and understanding AI’s rising environmental and energy impacts.” (Press release)
- House Science Committee tweeted, “With the recent release of the report from the House Bipartisan Task Force on AI, we wanted to highlight some key facts about this important document.”
Miscellaneous
- Linking to a one-pager overview of House Committee on Science, Space and Technology actions in the 118th Congress, House Science Committee tweeted, “Driving innovation in space. Advancing quantum sciences. Leading on AI. Securing research from CCP theft. Improving weather forecasts. Supporting American energy. Keeping the administration accountable. That’s a wrap on the Science Committee’s work in the 118th Congress.”
- Rep. Kevin Kiley (R-CA) tweeted, “The last several days have seen dizzying breakthroughs in AI from the leading labs. It has become impossible to deny that the world will soon change in dramatic ways, and political discourse needs to catch up.”
- Sen. Todd Young (R-ID) tweeted, “Great to meet with Howard Lutnick, President Trump’s nominee to be the Secretary of Commerce. Howard’s impressive background will help him hit the ground running to drive economic growth and innovation, and ensure the U.S. remains the global leader on AI and other emerging technologies.”
- Rep. Ro Khanna (D-CA) tweeted, “I am heartbroken by the tragic loss of Sewell Setzer III. My thoughts are with his mother, Megan Garcia, whom I recently spoke to at the suggestion of Kara Swisher. It is vital we have new safety standards and guardrails for “empathetic” AI and hold companies accountable.”
- Rep. Adriano Espaillat (D-NY) tweeted, “Thank you AmericasCUs for your steadfast efforts to leverage AI ethically to expand accessible banking that is inclusive of Latino and minority communities.”
- Sen. Mitt Romney (R-UT) tweeted, “We’ve turned our framework to mitigate extreme AI risks—such as nuclear and cyber threats—into bipartisan legislation. This should be the starting point for discussion on actions Washington should take on AI-enabled risks that don’t stifle U.S. innovation.”
- Romney also tweeted, “While AI could dramatically improve our lives, it also poses enormous national security risks. Our bipartisan legislation would preserve America’s competitive edge while safeguarding our advanced technology from those looking to cause widespread harm.”
- Romney also tweeted, “Looking forward, it’s incumbent upon Washington to find consensus on the issues that, while not necessarily front and center in people’s minds, would cause calamity down the road without action—like the national debt, China’s emergence as the global power, AI, and climate.”
About Zero One Strategies
Zero One Strategies is a boutique government relations practice dedicated to navigating the complex landscape of U.S. federal policy in emerging technologies. As advancements in technology continue to outpace regulatory frameworks, Zero One Strategies aims to provide strategic guidance and bipartisan advocacy for innovators and businesses operating at the forefront of technological development.
The practice focuses on key areas such as artificial intelligence, blockchain, decentralized technologies, cybersecurity, data, and digital infrastructure, as well as the multiple policy issues impacting these sectors, including tax and financial services.
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