Advancing American AI Act
Bill: S.1353 | Sponsor: Sen. Peters, Gary C. (D-MI)
Policy area: Government Operations and Politics

Summary:
Advancing American AI Act
This bill requires specified federal agencies to take steps to promote artificial intelligence (AI) while aligning with U.S. values, such as the protection of privacy, civil rights, and civil liberties. For example, the Department of Homeland Security (DHS) must issue policies and procedures for DHS related to the acquisition and use of AI and considerations for risks and impacts related to AI-enabled systems.

To promote United States values and fulfill agency missions through the 
use of innovative applied artificial intelligence technologies, and for 
                            other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Advancing American AI 
Act''.</DELETED>

<DELETED>SEC. 2. PURPOSE.</DELETED>

<DELETED>    The purposes of this bill are to--</DELETED>
        <DELETED>    (1) promote adoption of modernized business 
        practices and advanced technologies across the Federal 
        Government that align with the values of the United States, 
        including the protection of privacy, civil rights, and civil 
        liberties;</DELETED>
        <DELETED>    (2) encourage agency artificial intelligence-
        related programs and initiatives that enhance the 
        competitiveness of the United States and foster an approach to 
        artificial intelligence that builds on the strengths of the 
        United States in innovation and entrepreneurialism;</DELETED>
        <DELETED>    (3) enhance Government venues to translate 
        research advances into artificial intelligence applications to 
        modernize systems and assist agency leaders in fulfilling their 
        missions;</DELETED>
        <DELETED>    (4) test applied artificial intelligence to drive 
        agency productivity efficiencies in predictive supply chain and 
        logistics; and</DELETED>
        <DELETED>    (5) test applied artificial intelligence to 
        accelerate investment return for agencies, such as for 
        portfolio management, workforce development and upskilling, and 
        for other purposes.</DELETED>

<DELETED>SEC. 3. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Agency.--The term ``agency'' has the meaning 
        given the term in section 3502 of title 44, United States 
        Code.</DELETED>
        <DELETED>    (2) Appropriate congressional committees.--The 
        term ``appropriate congressional committees'' means--</DELETED>
                <DELETED>    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and</DELETED>
                <DELETED>    (B) the Committee on Oversight and Reform 
                of the House of Representatives.</DELETED>
        <DELETED>    (3) Artificial intelligence.--The term 
        ``artificial intelligence'' has the meaning given the term in 
        section 238(g) of the John S. McCain National Defense 
        Authorization Act for Fiscal Year 2019 (10 U.S.C. 2358 
        note).</DELETED>
        <DELETED>    (4) Director.--The term ``Director'' means the 
        Director of the Office of Management and Budget.</DELETED>

<DELETED>SEC. 4. PRINCIPLES AND POLICIES FOR USE OF ARTIFICIAL 
              INTELLIGENCE IN GOVERNMENT.</DELETED>

<DELETED>    (a) Continual Review.--</DELETED>
        <DELETED>    (1) In general.--The Director shall--</DELETED>
                <DELETED>    (A) establish mechanisms to continually 
                refine the guidance issued to the head of each agency 
                under section 104(a) of the AI in Government Act of 
                2020 (title I of division U of Public Law 116-260) as 
                best practices evolve; and</DELETED>
                <DELETED>    (B) not later than 180 days after the date 
                of enactment of this Act and every year thereafter, 
                brief the appropriate congressional committees on the 
                mechanisms established under subparagraph 
                (A).</DELETED>
        <DELETED>    (2) Considerations.--In developing updates to the 
        guidance described in paragraph (1)(A), the Director shall 
        consider the input of--</DELETED>
                <DELETED>    (A) the Privacy and Civil Liberties 
                Oversight Board;</DELETED>
                <DELETED>    (B) other governmental and nongovernmental 
                privacy, civil rights, and civil liberties experts; 
                and</DELETED>
                <DELETED>    (C) and any other individual or entity the 
                Director determines to be appropriate.</DELETED>
        <DELETED>    (3) Amendment to ai in government act of 2020.--
        Section 104(d) of the AI in Government Act of 2020 (title I of 
        division U of Public Law 116-260) is amended to read as 
        follows:</DELETED>
<DELETED>    ``(d) Updates.--The Director shall--</DELETED>
        <DELETED>    ``(1) continually issue updates to the memorandum 
        required under subsection (a); and</DELETED>
        <DELETED>    ``(2) in any event, issue updates to the 
        memorandum required under subsection (a)--</DELETED>
                <DELETED>    ``(A) not later than 2 years after the 
                date on which the Director issues the memorandum; 
                and</DELETED>
                <DELETED>    ``(B) not less frequently than annually 
                thereafter for 10 years.''.</DELETED>
<DELETED>    (b) Legal and Approval Processes for Procurement and Use 
of AI-Enabled Systems.--Not later than 180 days after the date of 
enactment of this Act--</DELETED>
        <DELETED>    (1) the Secretary of Homeland Security, with the 
        participation of the Chief Privacy Officer and the Officer for 
        Civil Rights and Civil Liberties of the Department of Homeland 
        Security, shall revise the legal and approval processes for the 
        procurement and use of artificial intelligence-enabled systems, 
        including associated data of machine learning systems, to 
        ensure that full consideration is given to the privacy, civil 
        rights, and civil liberties impacts of artificial intelligence-
        enabled systems; and</DELETED>
        <DELETED>    (2) the Chief Privacy Officer and the Officer for 
        Civil Rights and Civil Liberties of the Department of Homeland 
        Security shall report to Congress on any additional staffing or 
        funding resources that may be required to carry out the 
        requirements of this subsection.</DELETED>
<DELETED>    (c) Inspector General.--Not later than 180 days after the 
date of enactment of this Act, the Inspector General of the Department 
of Homeland Security shall identify any training needed to enable 
employees of the Office of the Inspector General to continually advance 
their understanding of--</DELETED>
        <DELETED>    (1) rapidly evolving artificial intelligence 
        technologies;</DELETED>
        <DELETED>    (2) best practices for governance, oversight, and 
        audits of the use of those technologies; and</DELETED>
        <DELETED>    (3) how the Office of the Inspector General is 
        using artificial intelligence to enhance audit and 
        investigative capabilities, including actions to--</DELETED>
                <DELETED>    (A) ensure the integrity of audit and 
                investigative results; and</DELETED>
                <DELETED>    (B) guard against bias in the selection 
                and conduct of audits and investigations.</DELETED>
<DELETED>    (d) Artificial Intelligence Hygiene and Protection of 
Privacy and Government Information.--</DELETED>
        <DELETED>    (1) Establishment.--Not later than 1 year after 
        the date of enactment of this Act, the Administrator of the 
        Office of Federal Procurement Policy and the Chief Acquisition 
        Officers Council (in this subsection referred to as the 
        ``Council'') or working group thereof shall develop a process 
        to--</DELETED>
                <DELETED>    (A) ensure that contracts involving 
                artificial intelligence--</DELETED>
                        <DELETED>    (i) align with the guidance issued 
                        to the head of each agency under section 104(a) 
                        of the AI in Government Act of 2020 (title I of 
                        division U of Public Law 116-260);</DELETED>
                        <DELETED>    (ii) address protection of 
                        privacy; and</DELETED>
                        <DELETED>    (iii) the ownership and security 
                        of data and other information obtained, 
                        processed, stored, transmitted, or otherwise 
                        handled by a contractor or subcontractor; 
                        and</DELETED>
                <DELETED>    (B) address any other issue or concern 
                determined to be relevant by the Administrator of the 
                Office of Federal Procurement Policy and the Council to 
                ensure appropriate use and protection of privacy and 
                Government data and other information.</DELETED>
        <DELETED>    (2) Review.--Not later than 2 years after the date 
        of enactment of this Act and every 2 years thereafter, the 
        Council shall update the process developed under paragraph 
        (1).</DELETED>
        <DELETED>    (3) Briefing.--The Council shall brief the 
        appropriate congressional committees--</DELETED>
                <DELETED>    (A) not later than 90 days after the date 
                of enactment of this Act and thereafter on a quarterly 
                basis until the Council first implements the process 
                developed under paragraph (1); and</DELETED>
                <DELETED>    (B) annually thereafter on the 
                implementation of the process developed under paragraph 
                (1).</DELETED>
        <DELETED>    (4) Sunset.--This subsection shall cease to be 
        effective on the date that is 10 years after the date of 
        enactment of this Act.</DELETED>

<DELETED>SEC. 5. AGENCY INVENTORY AND ARTIFICIAL INTELLIGENCE USE 
              CASES.</DELETED>

<DELETED>    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Director, in consultation with the Federal 
Chief Information Officer and the Chief Information Officers Council, 
shall issue a memorandum to the head of each agency that shall 
articulate the method by which the agency shall make public information 
about the use of artificial intelligence by the agency, including the 
publication criteria, publication format, and method of 
publication.</DELETED>
<DELETED>    (b) Inventory.--Not later than 1 year after the date of 
enactment of this Act, and annually thereafter for a period of 10 
years, the head of each agency shall--</DELETED>
        <DELETED>    (1) prepare an inventory of the artificial 
        intelligence use cases of the agency, including current and 
        planned uses, consistent with the memorandum issued under 
        subsection (a);</DELETED>
        <DELETED>    (2) identify, review, and assess existing 
        artificial intelligence deployed and operating in support of 
        agency missions for any inconsistencies with the guidance 
        issued under section 104 of the AI in Government Act of 2020 
        (title I of division U of Public Law 116-260) and any 
        additional guidance issued by the Director;</DELETED>
        <DELETED>    (3) develop and implement plans to achieve 
        consistency with the guidance issued under section 104 of the 
        AI in Government Act of 2020 (title I of division U of Public 
        Law 116-260) and any additional guidance from the Director for 
        each AI application or to retire AI applications found to be 
        developed or used in a manner that is not consistent with 
        guidance issued by the Director;</DELETED>
        <DELETED>    (4) share agency inventories with other agencies, 
        to the extent practicable and consistent with applicable law 
        and policy, including those concerning protection of privacy 
        and of sensitive law enforcement, national security, and other 
        protected information; and</DELETED>
        <DELETED>    (5) make agency inventories available to the 
        public, in a manner determined by the Director, and to the 
        extent practicable and in accordance with applicable law and 
        policy, including those concerning the protection of privacy 
        and of sensitive law enforcement, national security, and other 
        protected information.</DELETED>
<DELETED>    (c) Sharing.--The sharing of agency inventories described 
in subsection (b)(4) may be coordinated through the Chief Information 
Officers Council, the Chief Data Officers Council, the Chief Financial 
Officers Council, the Chief Acquisition Officers Council, or other 
interagency bodies to improve interagency coordination and information 
sharing for common use cases.</DELETED>
<DELETED>    (d) Central Inventory.--The Director shall designate a 
host entity and ensure the creation and maintenance of an online public 
directory in order to--</DELETED>
        <DELETED>    (1) make agency artificial intelligence use case 
        information available to the public and those wishing to do 
        business with the Government; and</DELETED>
        <DELETED>    (2) identify common use cases across 
        agencies.</DELETED>

<DELETED>SEC. 6. RAPID PILOT, DEPLOYMENT, AND SCALE OF APPLIED 
              ARTIFICIAL INTELLIGENCE CAPABILITIES TO DEMONSTRATE 
              MODERNIZATION ACTIVITIES RELATED TO USE CASES.</DELETED>

<DELETED>    (a) Identification of Use Cases.--Not later than 270 days 
after the date of enactment of this Act, the Director shall identify 
not fewer than 5 new use cases for the application of cross-enterprise 
artificial intelligence-enabled systems to support modernization 
initiatives across agencies, including interagency or intra-agency 
initiatives that require linking multiple siloed internal and external 
data sources.</DELETED>
<DELETED>    (b) Pilot Program.--</DELETED>
        <DELETED>    (1) Purposes.--The purposes of the pilot program 
        under this section are--</DELETED>
                <DELETED>    (A) to enable agencies to operate cross-
                enterprise, coordinating between existing established 
                programs and silos to improve delivery of the agency 
                mission; and</DELETED>
                <DELETED>    (B) to demonstrate the circumstances under 
                which artificial intelligence can be used to modernize 
                or assist in modernizing legacy agency 
                systems.</DELETED>
        <DELETED>    (2) Deployment and pilot.--Not later than 1 year 
        after the date of enactment of this Act, the Director, in 
        coordination with the heads of relevant agencies and other 
        officials as the Director determines to be appropriate, shall 
        ensure the initiation of the piloting of 5 new cross-enterprise 
        technology use case applications that leverage commercially 
        available technologies and systems to demonstrate scalable 
        artificial intelligence-enabled capabilities to support the use 
        cases identified under subsection (a).</DELETED>
        <DELETED>    (3) Prioritization.--In carrying out paragraph 
        (2), the Director shall prioritize modernization projects that 
        would benefit from commercially available privacy-preserving 
        machine learning and artificial intelligence techniques, such 
        as use of differential privacy, federated learning, and secure 
        multiparty computing.</DELETED>
        <DELETED>    (4) Use case modernization application areas.--Use 
        case modernization application areas described in paragraph (2) 
        shall include not fewer than 1 from each of the following 
        categories:</DELETED>
                <DELETED>    (A) Applied artificial intelligence to 
                drive agency productivity efficiencies in predictive 
                supply chain and logistics, such as--</DELETED>
                        <DELETED>    (i) predictive food demand and 
                        optimized supply;</DELETED>
                        <DELETED>    (ii) predictive medical supplies 
                        and equipment demand and optimized supply; 
                        or</DELETED>
                        <DELETED>    (iii) predictive logistics to 
                        accelerate disaster recovery.</DELETED>
                <DELETED>    (B) Applied artificial intelligence to 
                accelerate agency investment return and address 
                mission-oriented challenges, such as--</DELETED>
                        <DELETED>    (i) applied artificial 
                        intelligence portfolio management for 
                        agencies;</DELETED>
                        <DELETED>    (ii) workforce development and 
                        upskilling;</DELETED>
                        <DELETED>    (iii) redundant and laborious 
                        analyses;</DELETED>
                        <DELETED>    (iv) determining compliance with 
                        Government requirements, such as with grants 
                        management; or</DELETED>
                        <DELETED>    (v) outcomes measurement to 
                        measure economic and social benefits.</DELETED>
        <DELETED>    (5) Requirements.--Not later than 3 years after 
        the date of enactment of this Act, the Director, in 
        coordination with the heads of relevant agencies and other 
        officials as the Director determines to be appropriate, shall 
        establish an artificial intelligence capability that--
        </DELETED>
                <DELETED>    (A) solves data access and usability 
                issues with automated technology and eliminate or 
                minimize the need for manual data cleansing and 
                harmonization efforts;</DELETED>
                <DELETED>    (B) continuously and automatically ingests 
                data and updates domain models in near real-time to 
                help identify new patterns and predict trends to help 
                agency personnel to make better decisions and take 
                faster actions;</DELETED>
                <DELETED>    (C) organizes data for meaningful data 
                visualization and analysis so the Government has 
                predictive transparency for situational awareness to 
                improve use case outcomes;</DELETED>
                <DELETED>    (D) is rapidly configurable to support 
                multiple applications and automatically adapts to 
                dynamic conditions and evolving use case 
                requirements;</DELETED>
                <DELETED>    (E) enables knowledge transfer and 
                collaboration across agencies; and</DELETED>
                <DELETED>    (F) preserves intellectual property rights 
                to the data and output for benefit of the Federal 
                Government and agencies.</DELETED>
        <DELETED>    (6) Technology modernization fund.--</DELETED>
                <DELETED>    (A) In general.--The activities required 
                under this section shall be an allowable use under the 
                Technology Modernization Fund established under section 
                1078 of the National Defense Authorization Act for 
                Fiscal Year 2018 (40 U.S.C. 11301 note) (in this 
                paragraph referred to as the ``Fund'').</DELETED>
                <DELETED>    (B) Prioritization.--The Director may 
                prioritize the activities in this section for 
                implementation and funding by the Fund, in which case 
                the Director is encouraged to take steps to ensure that 
                agencies are able to rapidly and effectively implement 
                the pilots under this subsection, including by removing 
                reimbursement requirements for funding from the 
                Fund.</DELETED>
<DELETED>    (c) Briefing.--Not earlier than 270 days but not later 
than 1 year after the date of enactment of this Act, and annually 
thereafter for 3 years, the Director shall brief the appropriate 
congressional committees on the activities carried out under this 
section and results of those activities.</DELETED>

<DELETED>SEC. 7. ENABLING ENTREPRENEURS AND VALUES.</DELETED>

<DELETED>    (a) Innovative Commercial Items.--Section 880 of the 
National Defense Authorization Act for Fiscal Year 2017 (41 U.S.C. 3301 
note) is amended--</DELETED>
        <DELETED>    (1) in subsection (c), by striking $10,000,000'' 
        and inserting ``$25,000,000''; and</DELETED>
        <DELETED>    (2) by amending subsection (f) to read as 
        follows:</DELETED>
<DELETED>    ``(f) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `commercial product' has the 
        meaning given the term `commercial item' in section 2.101 of 
        the Federal Acquisition Regulation; and</DELETED>
        <DELETED>    ``(2) the term `innovative' means--</DELETED>
                <DELETED>    ``(A) any new technology, process, or 
                method, including research and development; 
                or</DELETED>
                <DELETED>    ``(B) any new application of an existing 
                technology, process, or method.''; and</DELETED>
        <DELETED>    (3) in subsection (g), by striking ``2022'' and 
        insert ``2027''.</DELETED>
<DELETED>    (b) DHS Other Transaction Authority.--Section 831 of the 
Homeland Security Act of 2002 (6 U.S.C. 391) is amended--</DELETED>
        <DELETED>    (1) in subsection (a)--</DELETED>
                <DELETED>    (A) in the matter preceding paragraph (1), 
                by striking ``September 30, 2017'' and inserting 
                ``September 30, 2024''; and</DELETED>
                <DELETED>    (B) by amending paragraph (2) to read as 
                follows:</DELETED>
        <DELETED>    ``(2) Prototype projects.--The Secretary--
        </DELETED>
                <DELETED>    ``(A) may, under the authority of 
                paragraph (1), carry out prototype projects under 
                section 2371b of title 10, United States Code; 
                and</DELETED>
                <DELETED>    ``(B) in applying the authorities of such 
                section 2371b, the Secretary shall perform the 
                functions of the Secretary of Defense as prescribed in 
                such section.'';</DELETED>
        <DELETED>    (2) in subsection (c)(1), by striking ``September 
        30, 2017'' and inserting ``September 30, 2024''; and</DELETED>
        <DELETED>    (3) in subsection (d), by striking ``section 
        845(e)'' and all that follows and inserting ``section 2371b(e) 
        of title 10, United States Code.''.</DELETED>

<DELETED>SEC. 8. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    There is authorized to be appropriated such sums as the 
necessary to carry out the requirements of this Act and the amendments 
made by this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advancing American AI Act''.

SEC. 2. PURPOSE.

    The purposes of this Act are to--
            (1) encourage agency artificial intelligence-related 
        programs and initiatives that enhance the competitiveness of 
        the United States and foster an approach to artificial 
        intelligence that builds on the strengths of the United States 
        in innovation and entrepreneurialism;
            (2) enhance the ability of the Federal Government to 
        translate research advances into artificial intelligence 
        applications to modernize systems and assist agency leaders in 
        fulfilling their missions;
            (3) promote adoption of modernized business practices and 
        advanced technologies across the Federal Government that align 
        with the values of the United States, including the protection 
        of privacy, civil rights, and civil liberties; and
            (4) test and harness applied artificial intelligence to 
        enhance mission effectiveness and business practice efficiency.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Agency.--The term ``agency'' has the meaning given the 
        term in section 3502 of title 44, United States Code.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    (B) the Committee on Oversight and Reform of the 
                House of Representatives.
            (3) Artificial intelligence.--The term ``artificial 
        intelligence'' has the meaning given the term in section 238(g) 
        of the John S. McCain National Defense Authorization Act for 
        Fiscal Year 2019 (10 U.S.C. 2358 note).
            (4) Artificial intelligence system.--The term ``artificial 
        intelligence system''--
                    (A) means any data system, software, application, 
                tool, or utility that operates in whole or in part 
                using dynamic or static machine learning algorithms or 
                other forms of artificial intelligence, whether--
                            (i) the data system, software, application, 
                        tool, or utility is established primarily for 
                        the purpose of researching, developing, or 
                        implementing artificial intelligence 
                        technology; or
                            (ii) artificial intelligence capability is 
                        integrated into another system or agency 
                        business process, operational activity, or 
                        technology system; and
                    (B) does not include any common commercial product 
                within which artificial intelligence is embedded, such 
                as a word processor or map navigation system.
            (5) Department.--The term ``Department'' means the 
        Department of Homeland Security.
            (6) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.

SEC. 4. PRINCIPLES AND POLICIES FOR USE OF ARTIFICIAL INTELLIGENCE IN 
              GOVERNMENT.

    (a) Guidance.--The Director shall, when developing the guidance 
required under section 104(a) of the AI in Government Act of 2020 
(title I of division U of Public Law 116-260), consider--
            (1) the considerations and recommended practices identified 
        by the National Security Commission on Artificial Intelligence 
        in the report entitled ``Key Considerations for the Responsible 
        Development and Fielding of AI'', as updated in April 2021;
            (2) the principles articulated in Executive Order 13960 (85 
        Fed. Reg. 78939; relating to promoting the use of trustworthy 
        artificial intelligence in Government); and
            (3) the input of--
                    (A) the Privacy and Civil Liberties Oversight 
                Board;
                    (B) relevant interagency councils, such as the 
                Federal Privacy Council, the Chief Information Officers 
                Council, and the Chief Data Officers Council;
                    (C) other governmental and nongovernmental privacy, 
                civil rights, and civil liberties experts; and
                    (D) any other individual or entity the Director 
                determines to be appropriate.
    (b) Department Policies and Processes for Procurement and Use of 
Artificial Intelligence-enabled Systems.--Not later than 180 days after 
the date of enactment of this Act--
            (1) the Secretary of Homeland Security, with the 
        participation of the Chief Procurement Officer, the Chief 
        Information Officer, the Chief Privacy Officer, and the Officer 
        for Civil Rights and Civil Liberties of the Department and any 
        other person determined to be relevant by the Secretary of 
        Homeland Security, shall issue policies and procedures for the 
        Department related to--
                    (A) the acquisition and use of artificial 
                intelligence; and
                    (B) considerations for the risks and impacts 
                related to artificial intelligence-enabled systems, 
                including associated data of machine learning systems, 
                to ensure that full consideration is given to--
                            (i) the privacy, civil rights, and civil 
                        liberties impacts of artificial intelligence-
                        enabled systems; and
                            (ii) security against misuse, degradation, 
                        or rending inoperable of artificial 
                        intelligence-enabled systems; and
            (2) the Chief Privacy Officer and the Officer for Civil 
        Rights and Civil Liberties of the Department shall report to 
        Congress on any additional staffing or funding resources that 
        may be required to carry out the requirements of this 
        subsection.
    (c) Inspector General.--Not later than 180 days after the date of 
enactment of this Act, the Inspector General of the Department shall 
identify any training and investments needed to enable employees of the 
Office of the Inspector General to continually advance their 
understanding of--
            (1) artificial intelligence systems;
            (2) best practices for governance, oversight, and audits of 
        the use of artificial intelligence systems; and
            (3) how the Office of the Inspector General is using 
        artificial intelligence to enhance audit and investigative 
        capabilities, including actions to--
                    (A) ensure the integrity of audit and investigative 
                results; and
                    (B) guard against bias in the selection and conduct 
                of audits and investigations.
    (d) Artificial Intelligence Hygiene and Protection of Government 
Information, Privacy, Civil Rights, and Civil Liberties.--
            (1) Establishment.--Not later than 1 year after the date of 
        enactment of this Act, the Director, in consultation with a 
        working group consisting of members selected by the Director 
        from appropriate interagency councils, shall develop an initial 
        means by which to--
                    (A) ensure that contracts for the acquisition of an 
                artificial intelligence system or service--
                            (i) align with the guidance issued to the 
                        head of each agency under section 104(a) of the 
                        AI in Government Act of 2020 (title I of 
                        division U of Public Law 116-260);
                            (ii) address protection of privacy, civil 
                        rights, and civil liberties;
                            (iii) address the ownership and security of 
                        data and other information created, used, 
                        processed, stored, maintained, disseminated, 
                        disclosed, or disposed of by a contractor or 
                        subcontractor on behalf of the Federal 
                        Government; and
                            (iv) include considerations for securing 
                        the training data, algorithms, and other 
                        components of any artificial intelligence 
                        system against misuse, unauthorized alteration, 
                        degradation, or rendering inoperable; and
                    (B) address any other issue or concern determined 
                to be relevant by the Director to ensure appropriate 
                use and protection of privacy and Government data and 
                other information.
            (2) Consultation.--In developing the considerations under 
        paragraph (1)(A)(iv), the Director shall consult with the 
        Secretary of Homeland Security, the Director of the National 
        Institute of Standards and Technology, and the Director of 
        National Intelligence.
            (3) Review.--The Director--
                    (A) should continuously update the means developed 
                under paragraph (1); and
                    (B) not later than 2 years after the date of 
                enactment of this Act and not less frequently than 
                every 2 years thereafter, shall update the means 
                developed under paragraph (1).
            (4) Briefing.--The Director shall brief the appropriate 
        congressional committees--
                    (A) not later than 90 days after the date of 
                enactment of this Act and thereafter on a quarterly 
                basis until the Director first implements the means 
                developed under paragraph (1); and
                    (B) annually thereafter on the implementation of 
                this subsection.
            (5) Sunset.--This subsection shall cease to be effective on 
        the date that is 5 years after the date of enactment of this 
        Act.

SEC. 5. AGENCY INVENTORIES AND ARTIFICIAL INTELLIGENCE USE CASES.

    (a) Inventory.--Not later than 60 days after the date of enactment 
of this Act, and continuously thereafter for a period of 5 years, the 
Director, in consultation with the Chief Information Officers Council, 
the Chief Data Officers Council, and other interagency bodies as 
determined to be appropriate by the Director, shall require the head of 
each agency to--
            (1) prepare and maintain an inventory of the artificial 
        intelligence use cases of the agency, including current and 
        planned uses;
            (2) share agency inventories with other agencies, to the 
        extent practicable and consistent with applicable law and 
        policy, including those concerning protection of privacy and of 
        sensitive law enforcement, national security, and other 
        protected information; and
            (3) make agency inventories available to the public, in a 
        manner determined by the Director, and to the extent 
        practicable and in accordance with applicable law and policy, 
        including those concerning the protection of privacy and of 
        sensitive law enforcement, national security, and other 
        protected information.
    (b) Central Inventory.--The Director is encouraged to designate a 
host entity and ensure the creation and maintenance of an online public 
directory to--
            (1) make agency artificial intelligence use case 
        information available to the public and those wishing to do 
        business with the Federal Government; and
            (2) identify common use cases across agencies.
    (c) Sharing.--The sharing of agency inventories described in 
subsection (a)(2) may be coordinated through the Chief Information 
Officers Council, the Chief Data Officers Council, the Chief Financial 
Officers Council, the Chief Acquisition Officers Council, or other 
interagency bodies to improve interagency coordination and information 
sharing for common use cases.

SEC. 6. RAPID PILOT, DEPLOYMENT AND SCALE OF APPLIED ARTIFICIAL 
              INTELLIGENCE CAPABILITIES TO DEMONSTRATE MODERNIZATION 
              ACTIVITIES RELATED TO USE CASES.

    (a) Identification of Use Cases.--Not later than 270 days after the 
date of enactment of this Act, the Director, in consultation with the 
Chief Information Officers Council, the Chief Data Officers Council, 
and other interagency bodies as determined to be appropriate by the 
Director, shall identify 4 new use cases for the application of 
artificial intelligence-enabled systems to support interagency or 
intra-agency modernization initiatives that require linking multiple 
siloed internal and external data sources, consistent with applicable 
laws and policies, including those relating to the protection of 
privacy and of sensitive law enforcement, national security, and other 
protected information.
    (b) Pilot Program.--
            (1) Purposes.--The purposes of the pilot program under this 
        subsection include--
                    (A) to enable agencies to operate across 
                organizational boundaries, coordinating between 
                existing established programs and silos to improve 
                delivery of the agency mission; and
                    (B) to demonstrate the circumstances under which 
                artificial intelligence can be used to modernize or 
                assist in modernizing legacy agency systems.
            (2) Deployment and pilot.--Not later than 1 year after the 
        date of enactment of this Act, the Director, in coordination 
        with the heads of relevant agencies and other officials as the 
        Director determines to be appropriate, shall ensure the 
        initiation of the piloting of the 4 new artificial intelligence 
        use case applications identified under subsection (a), 
        leveraging commercially available technologies and systems to 
        demonstrate scalable artificial intelligence-enabled 
        capabilities to support the use cases identified under 
        subsection (a).
            (3) Risk evaluation and mitigation plan.--In carrying out 
        paragraph (2), the Director shall require the heads of agencies 
        to--
                    (A) evaluate risks in utilizing artificial 
                intelligence systems; and
                    (B) develop a risk mitigation plan to address those 
                risks, including consideration of--
                            (i) the artificial intelligence system not 
                        performing as expected;
                            (ii) the lack of sufficient or quality 
                        training data; and
                            (iii) the vulnerability of a utilized 
                        artificial intelligence system to unauthorized 
                        manipulation or misuse.
            (4) Prioritization.--In carrying out paragraph (2), the 
        Director shall prioritize modernization projects that--
                    (A) would benefit from commercially available 
                privacy-preserving techniques, such as use of 
                differential privacy, federated learning, and secure 
                multiparty computing; and
                    (B) otherwise take into account considerations of 
                civil rights and civil liberties.
            (5) Use case modernization application areas.--Use case 
        modernization application areas described in paragraph (2) 
        shall include not less than 1 from each of the following 
        categories:
                    (A) Applied artificial intelligence to drive agency 
                productivity efficiencies in predictive supply chain 
                and logistics, such as--
                            (i) predictive food demand and optimized 
                        supply;
                            (ii) predictive medical supplies and 
                        equipment demand and optimized supply; or
                            (iii) predictive logistics to accelerate 
                        disaster preparedness, response, and recovery.
                    (B) Applied artificial intelligence to accelerate 
                agency investment return and address mission-oriented 
                challenges, such as--
                            (i) applied artificial intelligence 
                        portfolio management for agencies;
                            (ii) workforce development and upskilling;
                            (iii) redundant and laborious analyses;
                            (iv) determining compliance with Government 
                        requirements, such as with grants management; 
                        or
                            (v) outcomes measurement to measure 
                        economic and social benefits.
            (6) Requirements.--Not later than 3 years after the date of 
        enactment of this Act, the Director, in coordination with the 
        heads of relevant agencies and other officials as the Director 
        determines to be appropriate, shall establish an artificial 
        intelligence capability within each of the 4 use case pilots 
        under this subsection that--
                    (A) solves data access and usability issues with 
                automated technology and eliminates or minimizes the 
                need for manual data cleansing and harmonization 
                efforts;
                    (B) continuously and automatically ingests data and 
                updates domain models in near real-time to help 
                identify new patterns and predict trends, to the extent 
                possible, to help agency personnel to make better 
                decisions and take faster actions;
                    (C) organizes data for meaningful data 
                visualization and analysis so the Government has 
                predictive transparency for situational awareness to 
                improve use case outcomes;
                    (D) is rapidly configurable to support multiple 
                applications and automatically adapts to dynamic 
                conditions and evolving use case requirements, to the 
                extent possible;
                    (E) enables knowledge transfer and collaboration 
                across agencies; and
                    (F) preserves intellectual property rights to the 
                data and output for benefit of the Federal Government 
                and agencies.
    (c) Briefing.--Not earlier than 270 days but not later than 1 year 
after the date of enactment of this Act, and annually thereafter for 4 
years, the Director shall brief the appropriate congressional 
committees on the activities carried out under this section and results 
of those activities.
    (d) Sunset.--The section shall cease to be effective on the date 
that is 5 years after the date of enactment of this Act.

SEC. 7. ENABLING ENTREPRENEURS AND AGENCY MISSIONS.

    (a) Innovative Commercial Items.--Section 880 of the National 
Defense Authorization Act for Fiscal Year 2017 (41 U.S.C. 3301 note) is 
amended--
            (1) in subsection (c), by striking $10,000,000'' and 
        inserting ``$25,000,000'';
            (2) by amending subsection (f) to read as follows:
    ``(f) Definitions.--In this section--
            ``(1) the term `commercial product'--
                    ``(A) has the meaning given the term `commercial 
                item' in section 2.101 of the Federal Acquisition 
                Regulation; and
                    ``(B) includes a commercial product or a commercial 
                service, as defined in sections 103 and 103a, 
                respectively, of title 41, United States Code; and
            ``(2) the term `innovative' means--
                    ``(A) any new technology, process, or method, 
                including research and development; or
                    ``(B) any new application of an existing 
                technology, process, or method.''; and
            (3) in subsection (g), by striking ``2022'' and insert 
        ``2027''.
    (b) DHS Other Transaction Authority.--Section 831 of the Homeland 
Security Act of 2002 (6 U.S.C. 391) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``September 30, 2017'' and inserting 
                ``September 30, 2024''; and
                    (B) by amending paragraph (2) to read as follows:
            ``(2) Prototype projects.--The Secretary--
                    ``(A) may, under the authority of paragraph (1), 
                carry out prototype projects under section 2371b of 
                title 10, United States Code; and
                    ``(B) in applying the authorities of such section 
                2371b, the Secretary shall perform the functions of the 
                Secretary of Defense as prescribed in such section.'';
            (2) in subsection (c)(1), by striking ``September 30, 
        2017'' and inserting ``September 30, 2024''; and
            (3) in subsection (d), by striking ``section 845(e)'' and 
        all that follows and inserting ``section 2371b(e) of title 10, 
        United States Code.''.
    (c) Commercial Off the Shelf Supply Chain Risk Management Tools.--
The General Services Administration is encouraged to pilot commercial 
off the shelf supply chain risk management tools to improve the ability 
of the Federal Government to characterize, monitor, predict, and 
respond to specific supply chain threats and vulnerabilities that could 
inhibit future Federal acquisition operations.
                                                       Calendar No. 669

117th CONGRESS

  2d Session

                                S. 1353

                          [Report No. 117-270]

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