AI Regulation: Cross-Agency Actions

AI Applications

Request for Comment

Issues a request for comment on the current and potential uses of AI in the derivatives markets the CFTC regulates as well as the implications of such use/adoption, including risk mitigation. Areas of interest include trading, data processing and analytics, risk management, compliance, books and records, systems development, cybersecurity and resilience, and customer interactions.

Consumer Protection - AI-Related Risks

Customer Advisory

Releases Customer Advisory: AI Won’t Turn Trading Bots into Money Machines, to alert investors to the risk of scams that promote “unreasonably high or guaranteed returns” using “AI-assisted technology” including bots, trade signal algorithms, crypto asset arbitrage algorithms. 

Risks to Critical Infrastructure

Assessments

Receives assessment reports from nine agencies (including DOD, DOT, Treasury, HHS) regarding potential risks of the use of AI in critical infrastructure and ways to mitigate the risk.

Disclosures/ Reporting

Information collection

By means of the Defense Production Act, requires developers of the most powerful AI systems (including “potential dual-use foundation models”) “to report vital information, especially AI safety test results” to the Secretary of Commerce.

Security

Proposed rule

Issues a proposal requiring certain cloud providers (Infrastructure as a Service (IAAS) providers) to report to the Secretary of Commerce when certain clients train a large AI model with potential capabilities that could be used in malicious cyber-enabled activity.

Anti-discrimination

Meeting

Convenes meeting with heads of federal civil rights offices to coordinate efforts to “prevent and address discrimination in the use of automated systems”

Model Risk Management

Remarks

Offer perspectives, in remarks at an industry symposium, regarding development of responsible AI. Representatives from FRB, FDIC, OCC, and CFPB said they have statutory authority to regulate emerging technologies. Collectively, they say they will hold institutions accountably for the use of new technologies consistent with the expectations in existing model risk management guidance.  

Competition / Anti-Trust

Information collection

Issues orders to five big tech firms to disclose recent partnerships and investments involving generative AI companies and major cloud service providers

Consumer Protection

Summit

Conducts virtual summit on Artificial Intelligence discussing key developments in AI and ways to protect consumers and competition

Emerging technology; cloud service offerings

Draft guidance

Issues a draft Emerging Technology Prioritization Framework that is intended to prioritize emerging technologies (ETs) for FedRAMP authorization and be applied to three generative AI interfaces discussed in the EO (chat interfaces, code generators and debugging tools, and image generators).

Evaluating AI Developments

Task Force

Created an AI task force to develop policies providing regulatory clarity and “catalyze AI innovation in healthcare”

Systems Testing

RFl

Requests comment that will aid in developing guidelines for evaluating AI technologies and for conducting red-teaming tests; facilitate development of consensus-based standards; and provide testing environments for the evaluation of AI systems. (See KPMG Regulatory Alert here)

AI Research

Announcement

Launches the National Artificial Intelligence Research Resource (NAIRR) pilot, comprising eleven federal agencies and 25 private sector organizations that will provide advanced computing, datasets, model software, training, and user support to US-based researchers and educators. The pilot will run for two years.  

Releases the NAIRR Task Force final report in advance of the pilot.

AI Hiring

Announcement

To accelerate federal AI hiring, grants flexible hiring authorities to federal agencies for AI talent, as well as a pool hiring action allowing certain applicants to apply for roles at multiple agencies using one application.