This quarter marked demonstrable progress toward sector-specific approaches to the regulation of artificial intelligence and machine learning ("AI"). As the EU continues to inch toward finalizing its draft Artificial Intelligence Act--the landmark, cross-sector regulatory framework for AI/ML technologies--the White House published a "Blueprint for an AI Bill of Rights," a non-binding set of principles memorializing the Biden administration's approach to algorithmic regulation. The AI Bill of Rights joins a number of recent U.S. legislative proposals, both at the federal and state levels,[1] and the Federal Trade Commission's ("FTC") Advanced Notice of Proposed Rulemaking to solicit input on questions related to potentially harmful data privacy and security practices, including automated decision-making systems. Our 3Q22 Artificial Intelligence and Automated Systems Legal Update focuses on these regulatory efforts and also examines other policy developments within the U.S. and Europe. The past several years have seen a number of new algorithmic governance initiatives take shape at the federal level, building on the December 2020 Trustworthy AI Executive Order that outlined nine distinct principles to ensure agencies "design, develop, acquire and use AI in a manner that fosters public trust and confidence while protecting privacy."[2]

The second quarter of 2022 saw U.S. federal lawmakers and agencies focus on draft legislation and guidance aimed at closing the gap to the EU with respect to addressing risks in the development and use of AI systems, in particular risks related to algorithmic bias and discrimination. The American Data Privacy and Protection Act ("ADPPA"), the bipartisan federal privacy bill introduced to the U.S. House in June 2022, marks a major step towards a comprehensive national privacy framework, and companies should take particular note of its inclusion of mandated algorithmic impact assessments. Meanwhile, the E.U.'s regulatory scheme for AI continues to wind its way through the EU legislative process. Though it is unlikely to become binding law until late 2023 at the earliest, the EU policy landscape remains dynamic. Our 2Q22 Artificial Intelligence and Automated Systems Legal Update focuses on these key efforts, and also examines other policy developments within the U.S. and EU that may be of interest to domestic and international companies alike.

Secretary shall support a program of fundamental research, development, and demonstration of energy efficient computing and data center technologies relevant to advanced computing applications, including high performance computing, artificial intelligence, and scientific machine learning.").

After a busy start to the year, regulatory and policy developments related to Artificial Intelligence and Automated Systems ("AI") have continued apace in the second quarter of 2021. Unlike the comprehensive regulatory framework proposed by the European Union ("EU") in April 2021,[1] more specific regulatory guidelines in the U.S. are still being proposed on an agency-by-agency basis. President Biden has so far sought to amplify the emerging U.S. AI strategy by continuing to grow the national research and monitoring infrastructure kick-started by the 2019 Trump Executive Order[2] and remain focused on innovation and competition with China in transformative innovations like AI, superconductors, and robotics. Most recently, the U.S. Innovation and Competition Act of 2021--sweeping, bipartisan R&D and science-policy legislation--moved rapidly through the Senate. While there has been no major shift away from the previous "hands off" regulatory approach at the federal level, we are closely monitoring efforts by the federal government and enforcers such as the FTC to make fairness and transparency central tenets of U.S. AI policy.

How AI and ML technologies fight against the growing fraud threat?