Overview
Title
To require the Federal financial agencies to carry out a study and report on standardized descriptions for vendor-provided artificial intelligence systems, and for other purposes.
ELI5 AI
The bill wants special government teams to study how to make it easier to understand and explain fancy computer programs called AI, which help people make decisions with lots of data. They want to make sure these AI helpers are using real data the right way and following rules, and then tell everyone in Congress what they find out in half a year.
Summary AI
H.R. 10263, titled the “Responsible AI Disclosure Act of 2024,” instructs federal financial agencies to conduct a study focusing on how vendor-provided artificial intelligence systems are described and standardized. The study aims to develop definitions and standards for AI data and training methodologies, assess the use of synthetic versus genuine data, and explore compliance with federal laws. The findings and suggestions must be reported to relevant congressional committees within six months. The bill also suggests that agencies may require AI vendors to disclose detailed information about their systems to ensure transparency and compliance with existing regulations.
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Keywords AI
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AnalysisAI
The bill titled "Responsible AI Disclosure Act of 2024," introduced in the United States Congress, proposes that Federal financial agencies conduct a study on standardized descriptions for artificial intelligence (AI) systems provided by vendors. This study aims to develop guidelines on how AI systems, particularly those used by financial entities, are described and categorized. It also addresses current standards and practices concerning AI data and model use and provides recommendations for potential legal adjustments based on these findings.
General Summary
The bill mandates a study by Federal financial agencies to establish definitions and standards for AI systems used in the financial sector. The study is intended to inform Congress about current practices, assess how AI systems function and are trained, and ensure compliance with existing Federal laws. It aims to provide a structured understanding of the data used in AI systems and possibly recommend changes to laws or practices to ensure responsible use of these technologies. Moreover, the bill calls for the agencies to report their findings within six months and suggests that certain disclosures might be required either to the agencies or the public, depending on their determinations.
Significant Issues
Several issues accompany the proposed legislation which could impact its effectiveness:
Coordination and Resources: The requirement for agencies to coordinate and consult with multiple entities may strain resources and lead to drawn-out processes without guaranteeing decisive outcomes.
Technical Complexity: Detailing the data composition, such as synthetic vs. genuine data ratios, requires specific technical expertise. This complexity could hinder swift implementation and make technical details challenging for non-experts to understand.
Public Disclosure: Agencies have discretion over public disclosure of information, possibly leading to inconsistent transparency standards.
Ambitious Timeline: The six-month deadline for the report is potentially too brief for comprehensive study, leading to rushed or incomplete conclusions.
Regulatory Burdens: Giving agencies the power to impose new requirements without specific benchmarks could result in unpredictable regulatory impacts for businesses involved in AI development or use.
Vague Compliance Language: The bill's reference to “best practices” for legal compliance may lack clarity, making practical application difficult for stakeholders.
Broad Impact on the Public
The proposed legislation aims to enhance the transparency and accountability of AI systems used in the financial sector. By establishing clearer standards and definitions, the bill seeks to protect consumers and investors from potential AI-related risks, such as biases in decision-making processes. If effectively implemented, it could improve trust in financial institutions that utilize AI technologies.
Impact on Specific Stakeholders
For financial institutions and AI vendors, this bill could represent increased scrutiny and compliance requirements. Successfully navigating these requirements may involve additional operational costs related to data transparency and disclosures. Conversely, these entities could benefit from greater standardization, which can lead to increased confidence in their AI products.
Regulatory bodies may either be empowered through clearer guidelines which assist in oversight activities or burdened by the complex tasks of understanding and implementing new standards. The public, including consumers and investors, stands to gain more protection from unfair practices and enhanced clarity regarding AI systems affecting financial decisions.
In conclusion, the Responsible AI Disclosure Act of 2024 endeavors to bring about a more structured and transparent use of AI in the financial sector, though its potential complexities and implementation challenges warrant careful consideration.
Issues
Section 2: The requirement for Federal financial agencies to coordinate and consult with other agencies in the study may lead to extensive time and resource expenditure without guaranteed actionable results, potentially resulting in wasteful spending.
Section 2: The complexity in determining and reporting the delineation and ratios of synthetic vs. genuine data requires significant technical expertise and clarification, which could delay implementation.
Section 2: Language concerning the design and functionality of AI models, and how data is incorporated, may be overly complex for non-technical stakeholders, complicating implementation and guidance.
Section 2: The bill allows for discretion by agencies in determining whether to disclose information to the public, which could lead to inconsistent application and transparency issues.
Section 2: Granting significant authority to agencies to implement new requirements without clear benchmarks for necessity can result in unpredictable regulatory burdens on businesses.
Section 2: The report requirement within 6 months may be overly ambitious given the complexity of the study, potentially leading to incomplete or rushed conclusions.
Section 2: The language regarding 'best practices for complying with applicable Federal laws' could be too vague, necessitating clearer guidelines on compliance standards for AI systems.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the bill specifies its short title as the “Responsible AI Disclosure Act of 2024.”
2. Study and report on standardized description for vendor-provided artificial intelligence systems Read Opens in new tab
Summary AI
The section outlines a study and report requirement for government agencies about how artificial intelligence (AI) systems provided by vendors are described and categorized. It calls for the establishment of standards for data use and AI model functionality, with findings reported to Congress, and suggests potential changes to laws and practices based on these findings.