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White House Issues Executive Order on Artificial Intelligence

A new executive order signed by President Trump on February 11, 2019, is intended to maintain American leadership in artificial intelligence (AI) research and development (R &D).  The order directs certain federal agencies to pursue various strategic objectives to promote and protect American advancement in AI.  Those agencies are to be identified by the National Science and Technology Council Select Committee on Artificial Intelligence Select Committee.  In addition, any of such agencies that perform R&D are directed to make AI an R&D priority.

Among other things, the executive order also:

  • directs the heads of all federal agencies to “review their Federal data and models to identify opportunities to increase access and use by the greater non-Federal AI research community in a manner that benefits that community, while protecting safety, security, privacy, and confidentiality.”  More specifically, the agencies are directed to “improve data and model inventory documentation to enable discovery and usability, and [to] prioritize improvements to access and quality of AI data and models based on the AI research community’s user feedback.”

  • directs the OMB Director, in coordination with other officials, to issue a memorandum to the heads of all agencies that (1) informs the development of regulatory and non-regulatory approaches by such agencies regarding technologies and industrial sectors that are either empowered or enabled by AI and advance American innovation, and (2) considers ways to reduce barriers to the use of AI.  A draft of the memorandum is to be issued for public comment before it is finalized.

  • directs the Secretary of Commerce, through the Director of the National Institute of Standards and Technology, to issue a plan for federal engagement in the development of technical standard and related tools in support of reliable, robust, and trustworthy systems that use AI technologies.

Last summer, the U.S. Treasury Department issued a report that recommended sweeping regulatory changes intended to promote innovation in the consumer financial services market, reduce regulatory burdens on consumer financial services providers, and update regulations applicable to various types of consumer lending and related consumer financial products and services.  That report included a section focused on big data, machine learning and AI in which the Treasury stated that it recognized the significant benefits that the increased application of AI and machine learning technologies can provide.  It urged regulators not to impose unnecessary burdens or obstacles to the use of AI and to provide greater regulatory clarity that would enable further testing and responsible deployment of such technology.

Copyright © by Ballard Spahr LLPNational Law Review, Volume IX, Number 45
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Christopher Ford Cryptocurrency Blockchain Attorney
Partner

Chris Ford has led some of the country's largest and most innovative Fintech and payment systems transactions. Chris advises clients—among them Fortune 100 companies, merchants, and financial institutions—on large-scale commercial transactions, particularly those involving financial services, payments, technology, and outsourcing.

Chris has more than 20 years of experience representing financial services companies in transactions. He understands the commercial issues they face and can assist them in integrating new technologies into their business environments. He provides strategic...

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Judy Mok Business and Finance Attorney
Of Counsel

Judy Mok has extensive experience negotiating complex payments transactions for some of the world's largest retailers and financial institutions. Her practice is in the payments space, with a focus on strategic partnership arrangements. In particular, she has significant experience negotiating and drafting co-branded and private-label credit card agreements, payment network agreements, merchant agreements, servicing agreements, processing agreements, and portfolio purchase and sale agreements.

Judy also has worked on numerous transactional matters for clients in launching and...

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