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The Executive Order on AI: What It Means for Your Business

Written by Lauren Haines | Nov 2, 2023 2:31:52 AM

On October 30th, U.S. President Joe Biden issued a historic executive order that aims to “[seize] the promise and [manage] the risks of artificial intelligence.” This landmark directive establishes new rules for AI safety, security, and trustworthiness and directs federal agencies to take action to support and oversee AI innovation.

This post will lay out everything you need to know about President Biden's precedent-setting executive order on artificial intelligence and what it means for the future of AI-driven business.

 

Quick Facts

The following is a succinct overview of the key actions directed by the executive order, shedding light on the forthcoming changes and implications for AI-driven businesses. For those who wish to delve into the fine details,  the complete executive order and its accompanying fact sheet are available at whitehouse.gov.

Note: It's important to consider that executive orders, such as this one pertaining to AI, can provide directives for federal agencies but don't create or change existing laws. Their impact hinges on federal agency implementation and is subject to change by future presidential administrations.

New Standards for AI Safety and Security

  • Reporting requirements for developers of the most powerful AI systems
  • New standards, tools, and tests to ensure AI systems are safe, secure, and trustworthy
  • New standards for detecting AI-generated content and authenticating official content

Protecting Americans’ Privacy

  • Federal support to accelerate research on privacy-preserving techniques
  • Strengthened privacy guidelines to dictate how federal agencies collect and use data

Advancing Equity and Civil Rights

  • Guidance for landlords and key federal entities to prevent algorithmic discrimination
  • Training, technical assistance, and coordination between federal agencies regarding the development and implementation of best practices for investigating and prosecuting civil rights violations related to AI
  • Development of best practices for the use of AI in the criminal justice system

Standing Up for Consumers, Patients, and Students

  • Establishment of a safety program to address unsafe healthcare practices involving AI
  • Federal support for educators to deploy AI-enabled educational tools

Supporting Workers

  •  Development of best practices to mitigate the harms and maximize the benefits of AI for workers
  • Production of a report exploring the potential labor-market impacts of AI and identifying options to strengthen federal support for workers facing labor disruptions, including from AI

Promoting Innovation and Competition

  • Expanded grants for AI research in vital areas like healthcare and climate change
  • Pilot of a new tool for AI researchers and students to access key resources and data
  • Federal support for small businesses to commercialize AI breakthroughs
  • Changes to immigration policies to attract and retain AI talent

Advancing American Leadership Abroad

  • Expansion of  bilateral, multilateral, and multistakeholder to collaborate on AI
  • Efforts to accelerate the development and implementation of international AI standards
  • Promotion of the development and deployment of AI abroad to solve global challenges

Ensuring Responsible and Effective Government Use of AI

  • Federal support for agencies to acquire AI products and services faster and cheaper
  • Rapid hiring of AI professionals as part of a government-wide AI talent surge
  • AI training for agency employees at all levels in relevant fields

Implications for AI-Driven Business

As federal agencies implement the actions directed in President Biden's executive order on AI, businesses will find themselves with new opportunities to seize the benefits of AI and new responsibilities for managing its risks.

Greater Support for AI Innovation & Global Leadership

The executive order directs an influx of federal support to businesses involved in AI innovation. Expanded grants in crucial areas such as healthcare and climate change will incentivize AI research and commercialization. Furthermore, the introduction of federal assistance for small businesses and a new tool for AI researchers and students may help break down barriers that have historically limited access to the AI ecosystem, ensuring that a variety of perspectives and ideas are contributing to the advancement of commercial AI technology.

Moreover, the executive order’s focus on establishing the U.S. as a global leader in AI will create opportunities for international collaboration. The expansion of bilateral, multilateral, and multi-stakeholder collaborations ensures that U.S. businesses will play a pivotal role in shaping the global AI landscape, while adjustments in immigration policies to attract top AI talent will give U.S. businesses access to the brightest minds in the field.

New Expectations for AI Governance and Accountability

While the executive order opens doors to innovation, it also sets expectations for businesses involved in AI development and deployment. Affected businesses will face new standards, tools, and tests aimed at ensuring the safety, security, and trustworthiness of AI systems. In particular, the establishment of reporting requirements for developers of powerful AI systems will raise the bar when it comes to AI governance and accountability.

Additionally, the executive order places emphasis on the importance of protecting user privacy and preventing algorithmic discrimination, which may move some businesses to reevaluate the ethics of their AI practices. Businesses will also need to be mindful of their impact on the labor market, as the order calls for a comprehensive analysis of AI’s labor-market impacts and federal support for workers affected by AI-induced disruptions.

 

 

 

Photo by Nils Huenerfuerst on Unsplash

 

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