President Biden issued an executive order on the use of artificial intelligence (AI) on Oct. 30. This order arrives at a time when concerns surrounding the use of AI are at an all-time high. Such sentiment is evident throughout the detailed order, which emphasizes the potential of AI to create “both promise and peril” and stresses the need to balance the benefits of AI with the significant risks it presents.

Guiding Principles of AI Governance Defined

The executive order outlines the Biden administration’s policy to “advance and govern the development and use of AI in accordance with eight guiding principles and priorities.” These principles provide guidelines for executive departments and agencies to implement the actions described in the order. The eight principles emphasize the following:

AI must be utilized safely and securely.
Responsible innovation, competition and collaboration in the AI space should be encouraged, allowing the United States to emerge as a leader in the use and optimization of AI technologies while promoting a fair environment for domestic businesses.
A commitment to supporting American workers is key to the responsible utilization and development of AI.
AI policies should further notions of equity and fairness while protecting against unlawful discrimination.
American consumers must be protected from potential harms that may arise alongside an increased adoption of AI and AI-enabled products.
As AI’s capabilities expand, the privacy and civil liberties of Americans must be protected and their personal data must be properly safeguarded.
It is imperative to manage the risks surrounding the federal government’s use of AI in order to efficiently and responsibly implement these technologies into its infrastructure.
The federal government should establish the United States as a global leader in encouraging ethical uses of AI, working with other nations to reach a united approach in establishing necessary safeguards.

Each of these illuminate the Biden administration’s approach in responding to the ever-growing presence of AI in the public and private sectors.

Required Federal Agency Actions

To implement the new guidelines, the order instructs a number of federal agencies to take certain actions within a specified period of time following its issuance on Oct. 30. Some of these include the following:

90 days from Oct. 30 - Secretary of Commerce shall require anyone developing potential dual-use foundation models or large-scale computing clusters to provide the federal government certain information, reports and records on an ongoing basis.

90 days from Oct. 30 – Secretary of Commerce must propose regulations that require United States Infrastructure as a Service (IaaS) providers to submit reports whenever a foreign person transacts with that provider.

180 days from Oct. 30 – Secretary of Commerce shall propose regulations requiring United States IaaS providers to verify the identity of foreign resellers of IaaS products.

270 days from Oct. 30 – Secretary of Commerce must establish guidelines and best practices for developing secure, trustworthy AI systems and enable AI developers to conduct AI red-teaming tests to create these systems.

The order outlines in greater detail other required action steps and the federal agencies delegated to complete them. These include:

Developing stronger standards for biological synthesis screening as a prerequisite to federal funding
Establishing standards for detecting AI-generated content and authenticating genuine content
Instituting a cybersecurity program to develop AI tools that can locate and fix vulnerabilities in critical software
Examining how agencies collect and use commercially available personal data and bolstering privacy guidance for federal agencies to account for AI-related risks
Providing clear guidance to landlords, federal benefits programs, and federal contractors to prevent AI algorithms from being used to worsen discrimination
Developing best practices for the use of AI in the criminal justice system, such as its use in sentencing, parole and probation, pretrial release and detention, risk assessments, and forensic analysis
Instructing the Department of Health and Human Services (HHS) to establish a safety program to address unsafe AI-related health care practices
Identifying best practices to mitigate harms of AI for workers, including by addressing job displacement, labor standards and workplace safety
Producing a report regarding the potential labor market impacts of AI
Promoting AI research across the United States and expanding grants for AI research in vital areas
Encouraging a fair and competitive AI ecosystem in order to protect small businesses
Streamlining visa criteria to expand ability of highly skilled immigrants and nonimmigrants with relevant expertise to study and work in the United States
Working to establish robust international frameworks that can mitigate the risks of AI while accelerating implementation of AI standards with international partners
Accelerating rapid hiring of AI professionals and providing AI training for government employees in relevant fields

The order also establishes the White House Artificial Intelligence Council, a committee whose function is to “coordinate the activities of agencies across the Federal Government to ensure the effective formulation, development, communication, industry engagement related to, and timely implementation of AI-related policies, including policies set forth in this order.” The assistant to the president and deputy chief of staff for policy are to serve as chair of the council. Additional members of the council include the secretaries of state, treasury, labor and homeland security, the administrator of the Small Business Administration, the director of national intelligence, and other agency leaders.

Next Steps

The continued implementation of the order’s guidelines will tighten regulations and increase reporting obligations surrounding the use of AI across a variety of industries. Private-sector organizations would be well-served to review the order to determine the steps expected of the regulatory agencies relevant to their business. As federal agencies roll out new guidelines and regulations, it will be imperative for businesses and consumers to understand and stay apprised of developments to ensure compliance.

Please contact Amanda Nelson or any member of Phelps’ Artificial Intelligence team with questions or for advice and guidance.

Amanda Nelson Singh

Insights

November 13, 2023

New Executive Order on AI Outlines Duties and Deadlines for Federal Agencies …

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