Part 2–Artificial Intelligence and Information Technology Modernization

Under this section, AI is defined as a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. An AI model is a software component of an information system that implements AI technology and uses computational, statistical, or machine-learning techniques to produce outputs from a defined set of inputs. An AI system is any data system, software, hardware, application, tool, or utility that operates in whole or in part using AI. An automated decision system is any computational process derived from machine learning, statistical modeling, data analytics, or AI that issues a simplified output (e.g., a score, classification, or recommendation) to materially influence or replace human decision making.

(Sec. 43201) This section prohibits states and localities from regulating artificial intelligence (AI) models, AI systems, or automated decision systems for 10 years.

This prohibition does not apply to any state law or regulation the primary purpose and effect of which is to remove legal impediments to, facilitate the deployment or operation of, or consolidate administrative procedures in a manner that facilitates the adoption of AI models, AI systems, or automated decision systems; that does not impose substantive design, performance, data-handling, documentation, civil liability, taxation, fee, or other requirements on AI models, AI systems, or automated decision systems, unless such requirements are imposed under federal law or are generally applicable to other models and systems that perform similar functions; or that imposes only fees and bonds that are reasonable and cost-based and treat other models and systems that perform similar functions in the same manner as AI models, AI systems, and automated decision systems.

This section also provides specific funds to the Department of Commerce to modernize and secure federal information technology systems through the replacement of some existing systems and the deployment of commercial AI and automation technologies. Specifically, Commerce must use funds appropriated under this section to (1) replace or modernize legacy business systems with commercial AI and automated decision systems; (2) facilitate the adoption of AI models that increase efficiency and service delivery; and (3) improve the cybersecurity of federal information technology systems through modernized architecture, automated threat detection, and integrated AI solutions.

Comment.

The challenge is in the first line… “human-defined objectives”. Who sets these objectives is a conversation that the nation needs to have sooner rather than later.

The first section which prohibits states from “regulating” AI for ten years appears to leave the regulation of AI to the Federal Government who will be rapidly using AI to convert business and government systems to this model. The implication is that the Federal Government will be the one defining the “human-defined objectives”. Would this not be considered a “power grab” of the first order? How will input be given and who will define the objectives, using which values?

The concern of many will be that the “values” used may reflect a “profit first” mentality. The question that remains unanswered is whether “government is run to make a profit for business or to protect the interests of ‘we the people’ from the excesses of large corporations. This section of the Budget Bill is likely to be overlooked as social justice advocates and environmentalists focus on the obvious efforts to restrict Medicaid and Healthcare AND to roll back ALL regulations of the Environmental Protection Agency. Ignoring the AI issue would be a mistake.

Teresa R. Porter

Marietta, Ohio