The executive orders on personal data and national security, as well as the executive order on AI safety and security, are significant developments in the United States’ regulatory landscape. These orders purport to protect personal data, enhance national security, and ensure the responsible development and deployment of AI technologies. Read on to get an overview of these executive orders, including their implications for various industries, compliance requirements, risk mitigation strategies, and legal considerations.
(Image: https://time.com/6330652/biden-ai-order/)
Biden’s Executive Order on Personal Data and National Security
The executive order on personal data and national security the Biden administration issued on February 28, 2024 focuses on protecting sensitive data and enhancing national security by establishing a set of principles and requirements for federal agencies handling personal data. A not so subtle implication is that these same requirements will be de rigueur for all U.S. companies, especially those interacting with the federal government. The key components of this executive order include:
1. Establishing a set of personal data principles, such as data minimization, transparency, and security.
2. Requiring federal agencies to implement these principles in their data handling practices.
3. Ensuring that personal data is only used for authorized purposes and is not disclosed or shared without proper authorization.
Industries Affected: The executive order on personal data and national security will primarily impact federal agencies handling personal data, but it may also have indirect effects on private companies that work with these agencies or handle sensitive data. Based on other data security regulations that initially applied only to government databases, the likely scenario is for these regulations to eventually be imposed on government contractors or pushed as legislation.
This order has implications across various sectors that often work with federal agencies, including:
1. Technology Companies: Those collecting and handling personal data.
2. Healthcare and Biotech: Given the focus on genomic and health data.
3. Financial Institutions: Protecting financial data.
4. Critical Infrastructure: Ensuring national security
Compliance Requirements: To comply with this executive order, federal agencies must establish robust governance frameworks and implement appropriate safeguards to protect sensitive data. This includes conducting regular risk assessments and audits, implementing secure data storage and encryption protocols, and ensuring that personal data is only used for authorized purposes. Any company within the AI space that either works for government entities or contractors would be wise to pre-emptively assess how to comply with this regulatory approach.
To comply with this order, organizations must:
1. Share Safety Test Results: Developers of powerful AI systems must share safety test results with the U.S. government. This applies especially to models posing risks to national security, economic security, or public health.
2. Establish Rigorous Standards: The National Institute of Standards and Technology (NIST) will set standards for extensive red-team testing. Critical infrastructure sectors will adopt these standards.
3. Screen Biological Synthesis: Strong standards for biological synthesis screening will prevent AI-driven risks in this domain.
Risk Mitigation Strategies: To mitigate the risks associated with personal data handling, federal agencies or their contractors will have to focus on implementing strong data security measures, such as encryption, access controls, and regular security audits. These are industry standard practices already, though the level of oversight for them will be an added layer. Additionally, agencies should ensure that their data handling practices align with the established principles and requirements.
Specific Requirements for Mitigating Risk
1. Transparency: Companies should be transparent about their data practices.
2. Ethical AI: Implement ethical guidelines to prevent misuse.
3. Regular Audits: Continuously assess data handling and security practices.
Legal Implications: The executive order on personal data and national security establishes a set of requirements for federal agencies handling personal data. Failure to comply with these requirements could result in legal consequences, such as fines or other penalties. The fines have not been clearly stipulated, yet they are likely to be tied to the impact and scope of the breach. Hopefully the fines will not be as steep as the EU AI Act has stipulated.
Executive Order on AI Safety and Security
The executive order on AI safety and security from October 2023 focuses on promoting the responsible development and deployment of AI technologies by establishing a set of principles and requirements for federal agencies investing in or utilizing AI. Both executive orders share similar language regarding responsible development and safeguards. The key components of this executive order include:
1. Establishing a set of principles for the responsible development and deployment of AI, such as transparency, fairness, and accountability.
2. Requiring federal agencies to implement these principles in their AI-related activities.
3. Ensuring that AI is only used for authorized purposes and is not disclosed or shared without proper authorization.
Industries Affected: The executive order on AI safety and security will primarily impact federal agencies investing in or utilizing AI technologies. However, it may also have indirect effects on private companies that work with these agencies or develop AI-related solutions. The chance that these regulations spread to the private sector is quite high unless there is a substantial backlash against some of the requirements.
Industries Affected
1. Tech Giants: Companies developing AI systems.
2. Healthcare and Biomedical Research: Handling sensitive health data.
3. Defense and National Security: Ensuring AI safety in critical contexts.
4. Communications and Infrastructure: Any company providing critical data or control system services must address the risks.
Key Areas Industries Must Address:
1. Safety and Security: Ensuring AI systems are safe, secure, and trustworthy.
2. Privacy Protection: Balancing innovation with privacy rights.
3. Equity and Civil Rights: Avoiding bias and discrimination.
4. Consumer and Worker Protections: Safeguarding users and employees.
5. Global Leadership: Positioning the U.S. as an AI leader.
Compliance Requirements: To comply with this executive order, federal agencies, and probably their subcontractors, must establish robust governance frameworks and implement appropriate safeguards to protect against AI-related risks. This includes conducting regular risk assessments and audits, implementing strong security measures, and ensuring that AI is only used for authorized purposes. DSG specializes in performing these risk mitigation tasks and implementing systems to manage AI in real-time.
Compliance Measures
1. Safety Testing: Developers must share safety test results with the government.
2. NIST Standards: Meet rigorous standards for red-team testing from NIST.
3. Biological Synthesis Screening: Companies must prevent misuse of AI in creating dangerous biological materials.
Risk Mitigation Strategies: To mitigate the risks associated with AI development and deployment, federal agencies should focus on implementing strong security measures, such as encryption, access controls, and regular security audits. Additionally, agencies should ensure that their AI-related activities align with the established principles and requirements.
Legal Implications: The executive order on AI safety and security establishes a set of requirements for federal agencies investing in or utilizing AI technologies. Failure to comply with these requirements could result in legal consequences, such as fines or other penalties.
In conclusion, the executive orders on personal data and national security, as well as the executive order on AI safety and security, are significant developments in the United States’ regulatory landscape. These orders aim to protect personal data, enhance national security, and ensure the responsible development and deployment of AI technologies. Compliance with these orders is essential for federal agencies, and indirect effects may be felt by private companies working with these agencies or handling sensitive data. By understanding the requirements and implications of these executive orders, organizations can take the necessary steps to mitigate risks and ensure compliance.
