The House Energy and Commerce Committee was set to markup “The American Privacy Rights Act (ARPA)” today, but the session was abruptly cancelled just before its scheduled start. ARPA, a significant consumer privacy bill introduced by Chair Cathy McMorris Rodgers (R-WA) and Ranking Member Frank Pallone (D-NJ), retains measures on data security, minimization, and restrictions on data brokers. However, it faces criticism from digital rights groups for removing provisions on algorithmic bias. These groups argue that the omission undermines efforts to prevent data-driven discrimination and call for the inclusion of strong civil rights protections.

Business groups, including BSA-The Software Alliance and TechNet, argue that APRA's stringent data restrictions could stifle innovation and impose burdens on service providers. They also criticize the bill's preemption language, claiming it fails to create a uniform national standard, leading to potential regulatory fragmentation. The tech industry emphasizes the need for balanced Federal privacy legislation that protects consumers without hindering technological advancement and competitiveness.

Chair Rodgers attributed the cancellation to a lack of support among GOP committee members, despite strong bipartisan efforts to address data security and privacy issues. Ranking Member Pallone, however, blamed Republican leadership for interfering with the legislative process. Both leaders expressed their commitment to continuing the fight for robust privacy legislation. Read ACG Analytics’ full analysis here.

Commerce Secretary Gina Raimondo defended the use of The Defense Production Act to mandate AI developers report to the government during a House hearing on the Commerce Department’s budget request. Raimondo emphasized that modern threats include AI in the hands of adversarial nations, such as China and Russia, which justify using the Act beyond traditional wartime purposes. She stressed that AI technology, including semiconductors and data centers, is critical for national security.

The budget request includes $8.9 million to implement mandatory AI reporting requirements under the Act, aiming to track and prevent foreign influence in the U.S. technology supply chain. Raimondo highlighted the necessity of these funds to hire additional staff and monitor AI developments, arguing that proposed Republican budget cuts would undermine efforts to counter China’s growing tech influence and ensure AI safety.

Leading consumer advocacy groups are urging the Consumer Financial Protection Bureau (CFPB) to clarify its expectations for lenders to use less discriminatory algorithms to ensure fair access to credit for Black Americans and other underrepresented groups. Under The Equal Access to Credit Opportunity Act, the CFPB enforces the disparate impact standard, holding entities liable if their processes result in significant disparities based on race or gender, even without intent to discriminate.

In a June 26th letter to CFPB Director Rohit Chopra, Consumer Reports and the Consumer Federation of America emphasized the need for official written guidance on less discriminatory alternatives (LDAs) for algorithmic systems. The groups argue that the rapid iteration capabilities of machine learning models make it easier to find and implement LDAs, addressing concerns over algorithmic bias without compromising performance.

The advocacy groups highlight the concept of "model multiplicity," which suggests that multiple models can perform equally well while having less discriminatory effects. They assert that providing clear guidance on LDAs is crucial for promoting fairness in algorithmic decision-making and ensuring compliance with Federal standards.

The Department of Homeland Security (DHS) has appointed Michael Boyce, a former Office of Management and Budget official, as the inaugural director of its AI Corps. DHS also announced the initiative's first 10 recruits to help integrate AI expertise into the department. Prior to taking on this role, Boyce was the principal contributor to the section on Federal use of generative AI in the President’s Executive Order on AI. “We have a big responsibility to develop and use AI in ways that take advantage of its potential while protecting privacy, civil rights, and civil liberties,” says Boyce.

The initial hires for the AI corps are senior technologists with extensive experience from both the public and private sectors, including backgrounds at the Defense Department, U.S. Digital Service, Google, McKinsey and Company, and YouTube. These experts will be instrumental in deploying AI across key areas of national security. "The range of professional and academic experiences these new hires bring to the federal government, some for the first time, will go a long way in our efforts to modernize our services,” says Chief Information Officer and Chief Artificial Intelligence Officer Eric Hysen.

Artificial intelligence leads the World Economic Forum’s “Top 10 Emerging Technologies” report, highlighting its transformative potential in scientific discovery. Advances in deep learning, generative AI, and foundation models are revolutionizing research, enabling unprecedented progress in understanding diseases, proposing new materials, and enhancing knowledge of the human body and mind. However, the report also emphasizes ethical and environmental challenges, such as privacy risks, societal disruptions, and the significant energy consumption required to sustain AI growth. Addressing these issues through further research, managing biases, and safeguarding intellectual property rights are essential for maintaining scientific integrity and societal trust.

Privacy-enhancing technologies rank second, with synthetic data poised to revolutionize global data sharing and collaboration, especially in health-related research. The World Economic Forum calls for stringent measures to manage AI's impact effectively, ensuring ethical data use and enhancing the reliability of AI-generated content. The Forum, which engages global leaders to shape industry agendas, stresses the importance of navigating these challenges to maximize the benefits of emerging technologies.

The Government Accountability Office (GAO) has released the first in a series of reports aimed at improving lawmakers’ understanding of generative AI. The report, titled “Artificial Intelligence: Generative AI Technologies and their Commercial Applications,” provides insights into the workings of generative AI, its commercial uses across various industries, and the associated benefits and risks. This initiative is part of a broader effort to educate Congress on the implications of generative AI technologies.

The report was sent to Senate Homeland Security Chairman Gary Peters (D-MI), Sen. Ed Markey (D-MA), and “appropriate congressional committees.” It outlines 3 main points: generative AI’s capability to create novel content, its complex model architecture, and its extensive commercial applications. It also highlights potential issues such as copyright concerns and inherent biases in training data. The GAO plans to release future reports addressing best practices, societal and environmental effects, and the Federal adoption of generative AI technologies.

Senators Todd Young (R-IN) and Brian Schatz (D-HI) have introduced “The Artificial Intelligence Public Awareness and Education Campaign Act,” a bipartisan bill aimed at educating the public about the risk and benefits of AI. The bill mandates the Commerce Department launch a public education campaign on AI technologies, focusing on best practices for identifying AI-generated deepfakes and other content, based on the recommendations from the AI working group established by Senate Majority Leader Chuck Schumer (D-NY).

The proposed legislation requires the Commerce Secretary to develop and implement a campaign highlighting the prevalence of AI in the digital economy and its potential political and security risks. The Commerce Department campaign would also promote workforce opportunities in AI and emphasize best practices for detecting AI-generated media. Within 1 year, Commerce would be required to report on the campaign’s effectiveness. This initiative is part of a broader effort to maintain U.S. leadership in AI innovation while ensuring public awareness and safety.

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