4 Ways the AI Executive Order May – Or May Not – Impact Your Business
By John Carney

Wondering what the latest executive order on AI means for you? Find out how this could impact your business.

The AI community had mixed reactions to the executive order introduced by President Joe Biden on October 30, 2023. Amid the wide array of responses (ranging from “this does nothing” all the way to “this is a massive government power grab"), you might have missed the big (and not so big) policy shifts. Here are four ways your business might be affected by the recent EO:

Is my business going to be subject to reporting requirements and foreign resale restrictions?

Probably not. Only very large models and clusters (10^26 operations, about 10 orders of magnitude larger than the much-hyped Tesla Dojo, and biological models greater than 10^23 operations), must be disclosed to the federal government. Very few clusters and models will be affected. It’s worth noting that these are initial requirements, and, as such, are subject to change going forward. Resale of these services to foreign persons will be restricted and must be disclosed to the federal government.  

How is this related to national security?

There will be various national security reports, guidance documents, and policies forthcoming around chemical, biological, radiological, and nuclear risks. Critical infrastructure regulations and guidance will be coming as well.

Does it change what I can use it for?

For the most part, no. The order calls for labeling and detection of synthetic content and looking for ways to authenticate content. It also looks for ways to detect and prevent the dissemination of already-unlawful content. There are some restrictions on government funding for biological information outputs.

I used AI to generate intellectual property. How is that protected?

We don’t know. The order calls for a review of AI’s role “inventorship” (the way patents are attributed) to their inventors and guidance on implementing it. There may be changes coming, and some uses may not be protected. Similarly, copyright protections for both inputs and outputs of generative AI will go under review for further policymaking. In short, copyright protections (or lack thereof) may change significantly.

Have more questions?

We will continue to publish guidance on the impacts of this and future AI executive orders. If you'd like to connect with one of our AI experts, we can help you understand the direct implications of this executive order for your business. Get in touch with us here.

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