Path to Comprehensive Federal Data Privacy Legislation

In a historic moment on October 30, 2023, President Joe Biden signed a groundbreaking executive order on artificial intelligence (AI).  It’s a pivotal step towards establishing comprehensive data privacy and AI safety regulations in the United States.  How far away are we from a comprehensive Federal Data privacy law in the US, instead of the patchwork of state laws?  It’s still uncertain, but trending in the right direction.

This executive order zeroes in on the critical aspects of AI, including safety, security, privacy, and civil liberties. The United States is currently without a comprehensive federal privacy law, with existing regulations primarily addressing children’s data (COPPA) and health information (HIPAA). President Biden has been vocal about his dissatisfaction with this situation and has called for bipartisan legislation to protect data privacy, with a special focus on individuals under the age of 18, and to impose stricter limits on the personal data collected by companies.

Leveraging the risks associated with AI as a catalyst for change, the White House statement says, “AI not only makes it easier to extract, identify, and exploit personal data, but it also heightens incentives to do so because companies use data to train AI systems.” In response to these risks, President Biden is urging Congress to pass bipartisan data privacy legislation to safeguard the privacy of all Americans, with a particular emphasis on protecting children.

Biden’s Emphasis on Privacy-Preserving Technologies

In addition to calling on Congress, President Biden has directed a series of actions to support the development and use of “privacy-preserving” technologies and techniques. This includes increased federal support for their development, encouraging federal agencies to utilize these technologies, and establishing guidelines to evaluate their effectiveness. The government will also assess how agencies purchase personally identifiable data from commercial sources, such as data brokers, and will provide new guidance on avoiding “AI risks.”

The Biden administration has previously expressed concerns about AI and data privacy, dedicating an entire section to the issue in last November’s Blueprint for an AI Bill of Rights. Now, the administration is taking concrete steps to address these concerns. This proactive approach to privacy is unprecedented in U.S. history, and it will be interesting to see if this momentum can be maintained or even increased.

The executive order also addresses other aspects of AI, including the development of AI safety and security standards, evaluating risks to critical infrastructure, supporting workers displaced by AI, creating resources for schools to use AI for personalized tutoring, and coordinating efforts to identify and end AI-powered civil rights violations.

Industry’s Role and Voluntary Commitments

The order also outlines responsibilities for major AI companies, requiring them to share safety test results and other critical information with the government and to notify the government when training new, potentially risky models. While the industry is largely left to self-regulate, the administration has secured voluntary commitments from major players in the AI industry regarding safety. Additionally, the G7 has released a voluntary code of conduct for AI.

The U.K. is also hosting its Global Summit on AI Safety this week, which will likely yield further developments in the field. However, a coalition of digital rights activists and trade unionists has criticized Prime Minister Rishi Sunak for excluding them from the event, despite Sunak’s acknowledgment of the profound impact AI will have on society.

All in all, President Biden’s executive order on AI is a significant step towards addressing the risks and challenges posed by AI, particularly in terms of data privacy and civil liberties. The administration’s proactive approach is commendable, and it will be interesting to see how these initiatives unfold in the coming months and years.

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About the Author: Hakim Danyal

Hakim Danyal is a writer for PieEye, specializing in the intricacies of Data Privacy. With a keen focus on GDPR, CPRA, and other pivotal data protection regulations, he delves deep into the world of cookies and privacy-related matters, ensuring readers stay informed and compliant

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