Big Spending

Happy Saturday morning! Below, you'll find a brief update on the rise in government spending, the latest verified deepfake, and a spotlight on new legislation. Read on, my friends!

Government Spending on AI

The use of artificial intelligence (AI) in government has significantly expanded, driven by substantial increases in federal spending and strategic initiatives. According to a Stanford study, U.S. federal government spending on AI surged in 2022, reflecting a broader trend towards integrating AI into various governmental functions. The House Appropriations Committee’s focus on advancing legislation to incorporate AI into more programs highlights the legislative momentum behind this technological shift. Supporting these efforts, the Department of Defense (DoD) and the Department of State (DoS) both released AI strategies in November 2023, underscoring the strategic importance of AI in government operations.

Federal spending on AI has seen explosive growth, particularly within the Department of Defense. A Brookings Institution report noted that AI-related federal contracts' potential value skyrocketed by nearly 1,200%, from $355 million up to August 2022, to $4.6 billion by August 2023. This dramatic increase was largely driven by the DoD, which saw its commitments to AI-related contracts more than double.

Michael C. Horowitz, Deputy Assistant Secretary of Defense, stated, "The DoD's AI initiatives and investments reflect our commitment to maintaining technological superiority."

The Department of Defense's AI expenditures overshadow those of other federal agencies, becoming a primary driver of the federal AI market. The potential spending by the DoD on AI-related contracts could reach $4.3 billion if all contracts are extended to their fullest terms. This focus on AI within the DoD aligns with the U.S.'s strategic priorities amid global technological competition, particularly with China. A Brookings Institution report emphasized that the DoD’s spending is so significant that "all other agencies become a rounding error." This reflects the critical importance placed on AI for national security and defense capabilities.

Beyond the defense sector, bipartisan efforts in Congress aim to significantly boost non-defense AI research and development (R&D) spending. A group of senators, led by Senate Majority Leader Chuck Schumer, proposed a substantial increase in federal spending on AI R&D to at least $32 billion annually. This proposal seeks to match recommendations from the National Security Commission on AI (NSCAI), which highlighted the need for substantial investment in AI to maintain technological leadership. Senator Schumer remarked, "We must ensure that our AI capabilities keep pace with global advancements." Despite these ambitions, current spending levels remain below the proposed targets, underscoring the need for emergency appropriations to bridge this gap.

Building Yourself

Generative AI is crucial due to its transformative potential across various sectors, including healthcare, entertainment, education, and business. By automating content creation and enabling innovative solutions, generative AI can significantly enhance productivity and creativity. Understanding generative AI is essential for harnessing its benefits while addressing associated risks like misinformation, ethical concerns, and security vulnerabilities, ensuring its responsible and beneficial integration into society. Here is a great overview of what generative AI is and how it works by Google Cloud.

Worth A Listen

—”Beyond the election, how might AI be regulated?” by 538 Politics Podcast

—”Lawmakers feel public pressure to regulate AI” by 538 Politics Podcast

Worth A Read

—”AI experimentation is high risk, high reward for low-profile political campaigns” by Ali Swenson, Dan Merica, and Garance Burke of The Associated Press

Spotlight on Federal Legislation

Secure Artificial Intelligence Act of 2024

- Purpose: The Act, titled “Secure Artificial Intelligence Act of 2024,” aims to enhance the tracking and processing of security and safety incidents and risks related to AI.

- Definitions: Key terms defined include "artificial intelligence safety incident," "artificial intelligence security incident," "artificial intelligence security vulnerability," and "counter-artificial intelligence," outlining specific types of incidents and vulnerabilities associated with AI.

- Voluntary Tracking and Database: Within a year, a comprehensive, voluntary database will be established to track AI security and safety incidents, allowing various stakeholders to share information confidentially and publicly, with mechanisms to classify and retrieve information.

- Vulnerability Management and Standards: Processes will be updated to incorporate AI security vulnerabilities into existing frameworks like the National Vulnerability Database and the Common Vulnerabilities and Exposures Program. The efficacy of existing voluntary consensus standards for vulnerability reporting will be evaluated.

- Artificial Intelligence Security Center: An AI Security Center will be established within 90 days to facilitate research, develop guidance on counter-AI techniques, promote secure AI practices, and coordinate with relevant institutes, leveraging existing resources and ensuring access to proprietary models for research.

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Authored by Daniel Dean with the assistance of AI.