On September 11, the U.S. Department of Commerce’s Bureau of Industry and Security published a proposed rule in the Federal Register that would require quarterly reporting by organizations, companies, and corporations organized in the U.S. (including branches outside the U.S.) if they plan to either engage in artificial intelligence model training or acquire, develop, or otherwise possess a high-performance computing cluster for AI training. 

The Department of Justice is intensifying its corporate enforcement efforts with a new whistleblower program. DOJ has made it clear that corporations and individuals with knowledge of corporate misconduct should “come see us before we come see you.”

On October 30, 2023, President Biden signed an Executive Order regarding “Safe, Secure, and Trustworthy Artificial Intelligence.” The administration’s goal is to provide a legal and regulatory framework for the largely unregulated world of artificial intelligence (AI) so that the U.S. can reap the benefits of AI while avoiding the pitfalls. This wide-reaching order directs government agencies to promulgate rules, form task forces, and provide guidance on the risks of AI to national security, biological research, data privacy, civil rights, consumer protections, and the ability of workers to bargain collectively. While this order will have a broad impact across the entire economy, government contractors will be particularly impacted in the coming months and years as they are forced to adapt to emerging rules and regulations governing how they can use AI and what forms of AI the government will approve for use on government contracts. This order signals a shift in how federal agencies will operate in the future, and those changes will require contractors to adapt, whether or not they actively use AI in their operations.