United States of America: Entry into force with grace period of Advancing American AI Act through incorporation into National Defense Authorization Act for Fiscal Year 2023

On 23 December 2022, the Advancing American AI Act, including provisions on public procurement of Artificial Intelligence (AI), entered into force with grace period. The Act was incorporated into the National Defense Authorization Act for Fiscal Year 2023 (H.R.7776). In particular, the Act requires the Director of the Office of Management and Budget to adopt policies and outline procedures regarding the acquisition and use of AI and issue guidelines on the risks and potential impact of AI systems on individuals' privacy and civil liberties no later than 180 days after the entry into force of the Act. Furthermore, no later than one year after entry into force, the Director of the Office of Management and Budget is required to issue orders implementing the guidelines to ensure that all the acquisition contracts of AI made by the Federal Agencies comply with the risk assessments and the standards adopted and take into consideration the ownership and security of data.