US President Joe Biden’s Executive Order on Artificial Intelligence (AI), introduced on the
30th of October, recommends wide parameters be applied to the management of this fast-emerging technology. Though the order itself has no real ‘teeth,’ or legal enforcement power, it highlights several areas where the chief executive and his cabinet believe
US policymaking and administrative agencies should take action to ensure AI technology and systems are “safe, secure, and trustworthy” before companies make them public.
These recommendations include “New Standards for AI safety and security” requiring disclosure and testing of any AI tools posing potential risks in the areas of defence, national and homeland security, energy, cybersecurity, and in protecting consumers and
companies from fraud. Although financial services is not mentioned by name as an industry in the order’s details, as Finextra has
reported and shared in
previous and
upcoming webinars, AI and machine learning are being used more and more frequently by banks and other financial providers in a number of different use cases, in particular, to ensure their systems and transactions are protected from fraud and external
threats.
Another area where the President’s order on AI usage and development may have extra relevance for the banking industry is in its call for new privacy protection safeguards. Here, the Biden-Harris administration called for Congress to “pass bipartisan data
privacy legislation to protect all Americans, especially kids,” while establishing “leading-edge privacy-preserving technologies” for federal agencies. However, Senate Majority Leader Chuck Schumer, D-New York, has been quoted as saying congressional action
on any bills associated with AI regulation is still likely to be
“months away.”
There is also an equity and fairness emphasis to this latest White House order. It builds upon a previous Executive Order aimed at curbing
algorithmic discrimination, as well as published
comments earlier this year from US Secretary of Commerce Gina Raimondo and Secretary of State Antony Blinken regarding consumer protection and promoting innovations and competition in business.
Labor relations, criminal justice, housing, and healthcare components are emphasised in the new order as well: the administration wants to ensure clear guidance to landlords and government contractors on the fair use of AI algorithms. They also want federal
agencies to help define and encourage best practices for investigating and prosecuting civil rights violations related to the use of this new technology.
As the president’s
fact sheet on the proposed policies stated, the US has a strong position in AI technology and usage. “America already leads in AI innovation—more AI startups raised first-time capital in the United States last year than in the next seven countries combined.”
Within the US itself, the focus for AI policymaking, the White House says, should be on increasing research, promoting a fair and competitive ecosystem, and expanding options for highly skilled workers from other countries to “study, stay, and work” in the
United States on AI initiatives and programs. Also, the USA’s chief executive hopes the country can expand its work with other nations to deploy AI safely and securely across the globe.