A new Commerce Department proposal requiring detailed reporting from artificial intelligence (AI) firms threatens to saddle the industry with hefty compliance costs and potentially drive companies to relocate, experts warn, as the U.S. government seeks tighter oversight of the rapidly evolving technology sector. The Bureau of Industry and Security (BIS) released a Notice of Proposed Rulemaking on Monday (Sept. 9), aiming to ensure AI technologies are safe, reliable and protected against potential misuse by foreign adversaries or non-state actors. Under the proposed rule, major AI firms would need to provide detailed reports to the federal government on their developmental activities, cybersecurity measures and results from security testing efforts known as “red-teaming.” “As AI is progressing rapidly, it holds both tremendous promise and risk,” Secretary of Commerce Gina M. Raimondo said in a Monday news release. “This proposed rule would help us keep pace with new developments in AI technology to bolster our national defense and safeguard our national security.” The initiative has garnered support from some industry experts. “For advanced technologies that have huge potential like AI, we should think about misuse or potential security risks right from the start,” Crystal Morin, a former intelligence analyst in the U.S. Air Force and current cybersecurity strategist at Sysdig, told PYMNTS. “This legislation will encourage companies to be upfront and honest about their security practices and promote a secure-first approach to software design life cycles.” However, concerns have been raised about the impact on smaller companies. Efrain Ruh, CTO and AIOps Lead at Digitate, told PYMNTS: “Having to comply with detailed reporting puts an additional burden, especially on small and mid-size companies with limited resources and personnel, that cannot afford having a dedicated team for putting this information together.”
Full report : Proposed Commerce Dept AI Rule Could Hike Costs for Small Businesses, Experts Warn.
