Forthcoming Biden EO to Explore Existing AI Authority, Says Davidson

President Joe Biden’s forthcoming executive order on AI will direct federal agencies like the FTC to explore existing authorities for ways to regulate the technology, NTIA Administrator Alan Davidson said Wednesday.

Speaking at a Center for Democracy & Technology event, Davidson mentioned the work of agencies like the FTC, the SEC and the Equal Employment Opportunity Commission but didn’t specifically mention the FCC. He said it will be critical for agencies like the FTC to embrace a “whole-of-government” approach to regulating AI because the fast-evolving technology will impact every sector of the economy.

The Biden administration’s starting point for the EO was the White House’s agreement securing voluntary commitments from AI industry leaders (see 2307210043), said Davidson. Those commitments can potentially be turned into something broader with international reach, he said: “People have really bought into this idea that we have to do something, and I think getting those commitments from companies is going to be a really effective part of it.”

He called on the administration to harmonize AI policies with allies from the EU, U.K. and G7. Some international uniformity will help provide “immediate protection” against the risks of the technology, he said.

The administration will look to Congress for bipartisan legislation, but it’s going to be “hard” to pass a comprehensive bill, said Davidson. Both chambers of Congress are formulating ideas, but it might be best to reach for the “low-hanging fruit” first on the legislative front, he said. There are open questions about how policymakers can best promote innovation but also protect against the technology’s risks, he said.

The FTC held a separate event Wednesday that focused on generative AI’s impact on creative industries. The agency wants to make clear to market participants that there are no AI exemptions protecting companies against laws already on the books, said Chair Lina Khan. The FTC is exploring how AI tools can “turbo-charge” fraud activity, entrench dominant platforms that control the “necessary raw inputs” and “potentially lock in the business models that incentivize the endless surveillance of our personal data,” said Khan. There’s “little doubt” AI “could really transform how we live and work and communicate,” she said. “The laws and policies against which these new tools are introduced will significantly shape who benefits and who is harmed.”

A key component of the FTC’s congressional mandate is to ensure core statutory principles apply as technology and business practices evolve, said Khan. The agency will continue its efforts in determining how its existing authority can be used to fight fraud, deception and unfair methods of competition related to generative AI, said Commissioner Rebecca Kelly Slaughter. It’s possible there are “gaps in the law that need to be filled” to ensure the FTC can carry out its mission, said Slaughter.