II 

118TH CONGRESS 

1ST SESSION S. 3050 

To require a report on artificial intelligence regulation in the financial services 

industry, to establish artificial intelligence bug bounty programs, to require a vulnerability analysis study for artificial intelligence-enabled military applications, and to require a report on data sharing and coordination, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 17, 2023 

Mr. ROUNDS (for himself, Mr. SCHUMER, Mr. YOUNG, and Mr. HEINRICH) 

introduced the following bill; which was read twice and referred to the 

Committee on Armed Services 

A BILL 

To require a report on artificial intelligence regulation in 

the financial services industry, to establish artificial intelligence bug bounty programs, to require a vulnerability 

analysis study for artificial intelligence-enabled military 

applications, and to require a report on data sharing 

and coordination, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Artificial Intelligence 

5 Advancement Act of 2023’’. 

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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) CONGRESSIONAL DEFENSE COMMITTEES.— 

4 The term ‘‘congressional defense committees’’ has 

5 the meaning given such term in section 101 of title 

6 10, United States Code. 

7 (2) FOUNDATIONAL ARTIFICIAL INTELLIGENCE

8 MODEL.—The term ‘‘foundational artificial intel9 ligence model’’ means an adaptive generative model 

10 that is trained on a broad set of unlabeled data sets 

11 that can be used for different tasks, with minimal 

12 fine-tuning. 

13 SEC. 3. REPORT ON ARTIFICIAL INTELLIGENCE REGULA14 TION IN FINANCIAL SERVICES INDUSTRY. 

15 (a) IN GENERAL.—Not later than 90 days after the 

16 date of enactment of this Act, each of the Board of Gov17 ernors of the Federal Reserve System, the Federal Deposit 

18 Insurance Corporation, the Office of the Comptroller of 

19 the Currency, the National Credit Union Administration, 

20 and the Bureau of Consumer Financial Protection shall 

21 submit to the Committee on Banking, Housing and Urban 

22 Affairs of the Senate and the Committee on Financial 

23 Services of the House of Representatives a report on its 

24 gap in knowledge relating to artificial intelligence, includ25 ing an analysis on— 

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1 (1) which tasks are most frequently being as2 sisted or completed with artificial intelligence in the 

3 institutions the agency regulates; 

4 (2) current governance standards in place for 

5 artificial intelligence use at the agency and current 

6 standards in place for artificial intelligence oversight 

7 by the agency; 

8 (3) potentially additional regulatory authorities 

9 required by the agency to continue to successfully 

10 execute its mission; 

11 (4) where artificial intelligence may lead to 

12 overlapping regulatory issues between agencies that 

13 require clarification; 

14 (5) how the agency is currently using artificial 

15 intelligence, how the agency plans to use such artifi16 cial intelligence the next 3 years, and the expected 

17 impact, including fiscal and staffing, of those plans; 

18 and 

19 (6) what resources, monetary or other re20 sources, if any, the agency requires to both adapt to 

21 the changes that artificial intelligence will bring to 

22 the regulatory landscape and to adequately adopt 

23 and oversee the use of artificial intelligence across 

24 its operations described in paragraph (5). 

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1 (b) RULE OF CONSTRUCTION.—Nothing in this sec2 tion may be construed to require an agency to include con3 fidential supervisory information or pre-decisional or delib4 erative non-public information in a report under this sec5 tion. 

6 SEC. 4. ARTIFICIAL INTELLIGENCE BUG BOUNTY PRO7 GRAMS. 

8 (a) PROGRAM FOR FOUNDATIONAL ARTIFICIAL IN9 TELLIGENCE PRODUCTS BEING INCORPORATED BY DE10 PARTMENT OF DEFENSE.— 

11 (1) DEVELOPMENT REQUIRED.—Not later than 

12 180 days after the date of the enactment of this Act 

13 and subject to the availability of appropriations, the 

14 Chief Data and Artificial Intelligence Officer of the 

15 Department of Defense shall develop a bug bounty 

16 program for foundational artificial intelligence mod17 els being integrated into Department of Defense 

18 missions and operations. 

19 (2) COLLABORATION.—In developing the pro20 gram required by paragraph (1), the Chief may col21 laborate with the heads of other government agen22 cies that have expertise in cybersecurity and artifi23 cial intelligence. 

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1 (3) IMPLEMENTATION AUTHORIZED.—The 

2 Chief may carry out the program developed pursu3 ant to subsection (a). 

4 (4) CONTRACTS.—The Secretary of Defense 

5 shall ensure, as may be appropriate, that whenever 

6 the Department of Defense enters into any contract, 

7 the contract allows for participation in the bug 

8 bounty program developed pursuant to paragraph 

9 (1). 

10 (5) RULE OF CONSTRUCTION.—Nothing in this 

11 subsection shall be construed to require— 

12 (A) the use of any foundational artificial 

13 intelligence model; or 

14 (B) the implementation of the program de15 veloped pursuant to paragraph (1) in order for 

16 the Department to incorporate a foundational 

17 artificial intelligence model. 

18 (b) BRIEFING.—Not later than one year after the 

19 date of the enactment of this Act, the Chief shall provide 

20 the congressional defense committees a briefing on— 

21 (1) the development and implementation of bug 

22 bounty programs the Chief considers relevant to the 

23 matters covered by this section; and 

24 (2) long-term plans of the Chief with respect to 

25 such bug bounty programs. 

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1 SEC. 5. VULNERABILITY ANALYSIS STUDY FOR ARTIFICIAL 

2 INTELLIGENCE-ENABLED MILITARY APPLICA3 TIONS. 

4 (a) STUDY REQUIRED.—Not later than one year 

5 after the date of the enactment of this Act, the Chief Dig6 ital and Artificial Intelligence Officer (CDAO) of the De7 partment of Defense shall complete a study analyzing the 

8 vulnerabilities to the privacy, security, and accuracy of, 

9 and capacity to assess, artificial intelligence-enabled mili10 tary applications, as well as research and development 

11 needs for such applications. 

12 (b) ELEMENTS.—The study required by subsection 

13 (a) shall cover the following: 

14 (1) Research and development needs and transi15 tion pathways to advance explainable and interpret16 able artificial intelligence-enabled military applica17 tions, including the capability to assess the under18 lying algorithms and data models of such applica19 tions. 

20 (2) Assessing the potential risks to the privacy, 

21 security, and accuracy of underlying architectures 

22 and algorithms of artificial intelligence-enabled mili23 tary applications, including the following: 

24 (A) Individual foundational artificial intel25 ligence models, including the adequacy of exist26 ing testing, training, and auditing for such 

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1 models to ensure models can be properly as2 sessed over time. 

3 (B) The interactions of multiple artificial 

4 intelligence-enabled military applications, and 

5 the ability to detect and assess new, complex, 

6 and emergent behavior amongst individual 

7 agents, as well as the collective impact, includ8 ing how such changes may affect risk to pri9 vacy, security, and accuracy over time. 

10 (C) The impact of increased agency in arti11 ficial intelligence-enabled military applications 

12 and how such increased agency may affect the 

13 ability to detect and assess new, complex, and 

14 emergent behavior, as well risks to the privacy, 

15 security, and accuracy of such applications over 

16 time. 

17 (3) Assessing the survivability and traceability 

18 of decision support systems that are integrated with 

19 artificial intelligence-enabled military applications 

20 and used in a contested environment, including— 

21 (A) potential benefits and risks to Depart22 ment of Defense missions and operations of im23 plementing such applications; and 

24 (B) other technical or operational con25 straints to ensure such decision support sysVerDate Sep 11 2014 03:38 Oct 18, 2023 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3050.IS S3050
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1 tems that are integrated with artificial intel2 ligence-enabled military applications are able to 

3 adhere to the Department of Defense Ethical 

4 Principles for Artificial Intelligence. 

5 (4) Identification of existing artificial intel6 ligence metrics, developmental, testing and audit ca7 pabilities, personnel, and infrastructure within the 

8 Department of Defense, including test and evalua9 tion facilities, needed to enable ongoing identifica10 tion and assessment under paragraphs (1) through 

11 (3), and other factors such as— 

12 (A) implications for deterrence systems 

13 based on systems warfare; and 

14 (B) vulnerability to systems confrontation 

15 on the system and system-of-systems level. 

16 (5) Identification of gaps or research needs to 

17 sufficiently respond to the elements outlined in this 

18 subsection that are not currently, or not sufficiently, 

19 funded within the Department of Defense. 

20 (c) COORDINATION.—In carrying out the study re21 quired by subsection (a), the Chief Digital and Artificial 

22 Intelligence Officer shall coordinate with the following: 

23 (1) The Director of the Defense Advanced Re24 search Projects Agency (DARPA). 

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1 (2) The Under Secretary of Defense for Re2 search and Evaluation. 

3 (3) The Under Secretary of Defense for Policy. 

4 (4) The Director for Operational Test and 

5 Evaluation (DOT&E) of the Department. 

6 (5) As the Chief Digital and Artificial Intel7 ligence Officer considers appropriate, the following: 

8 (A) The Secretary of Energy. 

9 (B) The Director of the National Institute 

10 of Standards and Technology. 

11 (C) The Director of the National Science 

12 Foundation. 

13 (D) The head of the National Artificial In14 telligence Initiative Office of the Office of 

15 Science and Technology Policy. 

16 (E) Members and representatives of indus17 try. 

18 (F) Members and representatives of aca19 demia. 

20 (d) INTERIM BRIEFING.—Not later than 180 days 

21 after the date of the enactment of this Act, the Chief Dig22 ital and Artificial Intelligence Officer shall provide the 

23 congressional defense committees a briefing on the interim 

24 findings of the Chief Digital and Artificial Intelligence OfVerDate Sep 11 2014 03:38 Oct 18, 2023 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3050.IS S3050
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1 ficer with respect to the study being conducted pursuant 

2 to subsection (a). 

3 (e) FINAL REPORT.— 

4 (1) IN GENERAL.—Not later than one year 

5 after the date of the enactment of this Act, the 

6 Chief Digital and Artificial Intelligence Officer shall 

7 submit to the congressional defense committees a 

8 final report on the findings of the Chief Digital and 

9 Artificial Intelligence Officer with respect to the 

10 study conducted pursuant to subsection (a). 

11 (2) FORM.—The final report submitted pursu12 ant to paragraph (1) shall be submitted in unclassi13 fied for, but may include a classified annex. 

14 SEC. 6. REPORT ON DATA SHARING AND COORDINATION. 

15 (a) IN GENERAL.—Not later than 180 days after the 

16 date of the enactment of this Act, the Secretary of Defense 

17 shall submit to the congressional defense committees a re18 port on ways to improve data sharing, interoperability, 

19 and quality, as may be appropriate, across the Depart20 ment of Defense. 

21 (b) CONTENTS.—The report submitted pursuant to 

22 subsection (a) shall include the following: 

23 (1) A description of policies, practices, and cul24 tural barriers that impede data sharing and interVerDate Sep 11 2014 03:38 Oct 18, 2023 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3050.IS S3050
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1 operability, and lead to data quality issues, among 

2 components of the Department. 

3 (2) The impact a lack of appropriate levels of 

4 data sharing, interoperability, and quality has on 

5 Departmental collaboration, efficiency, interoper6 ability, and joint-decisionmaking. 

7 (3) A review of current efforts to promote ap8 propriate data sharing, including to centralize data 

9 management, such as the AVANA program. 

10 (4) A description of near-, mid-, and long-term 

11 efforts that the Office of the Secretary of Defense 

12 plans to implement to promote data sharing and 

13 interoperability, including efforts to improve data 

14 quality. 

15 (5) A detailed plan to implement a data sharing 

16 and interoperability strategy that supports effective 

17 development and employment of artificial intel18 ligence-enabled military applications. 

19 (6) A detailed assessment of the implementa20 tion of the Department of Defense Data Strategy 

21 issued in 2020, as well as the use of data decrees 

22 to improve management rigor in the Department 

23 when it comes to data sharing and interoperability. 

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1 (7) Any recommendations for Congress with re2 spect to assisting the Department in these efforts. 

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