Senate Leaders File NDAA Package with AI Provisions, Setting the Stage for Lame Duck Negotiations

Overview

On September 20, 2024, Senate Armed Services Committee (SASC) Chair Jack Reed (D-RI) and Ranking Member Roger Wicker (R-MS) filed a managers package to the SASC-passed version of the fiscal year (FY) 2025 National Defense Authorization Act (NDAA; S. 4638), teeing up bicameral negotiations over a compromise version of the bill in the lame duck session.

The package (SA 3290) is comprised of 93 amendments backed by both Senate Democrats and Republicans, the relevant committees of jurisdiction, and leadership. The manager’s package, as well as S. 4638, will be part of conference negotiations with the House, plus any additional amendments considered on the Senate floor, if any. The House passed their version (H.R. 8070) of the NDAA in June.

While the House and Senate bills include a host of overlapping provisions, the AI provisions are largely unique to their own respective bill, outside of identical provisions directing the U.S. Department of Defense (DoD) to establish a working group to develop an AI initiative among U.S. allies and partners, as well as similar provisions requiring DoD to brief Congress on the Department’s AI workforce.

Below, please find a collective summary of the AI provisions in the SASC-passed NDAA and Senate managers package, as well as the House-passed bill.

Senate NDAA AI Provisions

Division A--Department of Defense Authorizations

• Improvements to Defining, Identifying, and Planning DoD’s AI Workforce (Sec. 231): Directs DoD to, within 180 days of enactment, (1) fully define and identify the DoD AI workforce and (2) update the Human Capital Operating Plan to be consistent with the Agency Strategic Plan and Annual Performance Plan relating to AI workforce issues. Within 240 days of enactment, DoD’s Chief Digital and AI Officer is directed to brief Congress on the workforce assessment.
• Pilot Program on Development of Near-Term Use Cases of AI Toward Biotechnology Applications (Sec. 236): Directs DoD to, within one year of enactment, carry out a five-year pilot program on developing near-term use cases and demonstrations of AI toward biotechnology applications for national security.
• Pilot Programs on Use of AI (Sec. 241): Directs DoD to, within 60 days of enactment, carry out a pilot program to assess the feasibility and advisability of using AI-enabled software to optimize the workflow and operations for (1) depots, shipyards, or other manufacturing facilities run by the Department; and (2) contract administration for the Department.
• Duties of Chief Digital and AI Officer Governing Council (Sec. 242): Directs DoD’s Chief Digital AI Officer Governing Council to (1) identify and assess AI models and advanced AI technologies that could pose a national security risk if accessed by a U.S. adversary; (2) develop strategies to prevent unauthorized access and usage of AI models by U.S. adversaries; and (3) make related recommendations to Congress and relevant Federal agencies.
• Ensuring Competition in AI Procurement (Sec. 810): Directs DoD to, in contracting provisions with cloud providers, promote security and competition by requiring a competitive award process for each procurement of cloud computing services, with a focus on security and interoperability requirements.
• Multilateral AI Working Group (Sec. 1283): Directs DoD to, within 90 days of enactment, establish a working group to develop and coordinate an AI initiative among U.S. allies and partners. This provision, which is also in the House bill, is a revised version of the Five AIs Act ( 4306/H.R. 6425).
• AI Human Factors Integration (Sec. 1616): Directs the Under Secretary of Defense for Research and Engineering to establish a “AI Human Factors Integration Initiative” to (1) improve the human usability of AI systems and AI-derived information through the application of cognitive ergonomics techniques; and (2) ensure design tools and metrics are available for programs to ensure human factors considerations are included for AI systems adopted by DoD.
• Cost Budgeting for AI Data (Sec. 1620): Within 180 days of enactment, directs DoD’s the Chief Data and Artificial Intelligence Officer (CDAO) to develop a plan to ensure the budgeting process for programs containing AI components includes estimates for the types of data, as well as estimated costs for acquisition and sustainment of such data required to train, maintain, or improve the AI.

Division F—Economic Development Reauthorization Act of 2024

• AI-Enabled Weapon Systems Center of Excellence (Sec. 5231): Directs DoD to establish a center of excellence to support the development and maturation of AI-enabled weapon systems. The Center would (1) capture, analyze, assess, and share lessons learned across the Department regarding the latest advancements in AI-enabled weapon systems/procedures and training methodologies; (2) facilitate collaboration among DoD and foreign partners to identify and promulgate best practices, standards, and benchmarks; (3) facilitate collaboration among DoD, industry, and academia, including industry with expertise in autonomous weapon systems and other nontraditional weapon systems that utilize AI; (4) serve as a focal point for digital talent training and upskilling for the Department; and (5) carry out such other responsibilities as the Secretary determines appropriate.
• Advanced Computing Infrastructure to Enable Advanced AI Capabilities (Sec. 5234): Directs DoD to establish an advanced computing infrastructure program focused on development and deployment of military applications of high-performance computing and AI that are located on-premises at Department installations or accessible via commercial classified cloud providers. DoD is also directed to develop a high-performance computing roadmap that describes the computing infrastructure needed to research, test, develop, and evaluate advanced AI applications projected over the period covered by the future-years defense program. Further, using the infrastructure from the program, DoD is directed to develop AI systems that have general-purpose military applications for language, image, audio, video, and other data modalities.

Division G—State Trade Expansion Program

• Outbound Investment Transparency (Sec. 6071): Based on the Outbound Investment Transparency Act ( 2678) introduced by Sen. John Cornyn (R-TX), requires U.S. persons to notify the U.S. Department of the Treasury when making investments in or engaging in other economic activity associated with North Korea, China, Russia, or Iran. This requirement applies to U.S. persons in certain sectors, including AI. Covered activities that trigger the notification requirement include investing in an entity, establishing a venture or subsidiary, or acquiring certain positions in an entity in these countries.

Division I—Intelligence Authorization Act for Fiscal Year 2025

• National Security Procedures to Address Certain AI Risks and Threats (Sec. 504): Directs the President to, within 180 days of enactment, develop and issue procedures to facilitate and promote mechanisms by which vendors of advanced computation capabilities, vendors and commercial users of AI systems, as well as independent researchers and other third parties, can effectively notify appropriate elements of the United States Government of the following risks emanating from AI systems: (1) information security risks; (2) biosecurity risks; (3) suspected foreign malign influence activity; (4) chemical security risks; and (5) any other unlawful activity by foreign actors directed at an AI system.
  • The President is also directed to develop and issue a mechanisms by which (1) the Federal Government can provide threat briefings to vendors of advanced computation capabilities and AI systems to alert them to potential or confirmed foreign exploitation of their systems, as well as malign foreign plans and intentions; and (2) an inter-agency process is convened to identify appropriate Federal agencies to assist in related private sector engagement.
• Establishment of AI Security Center (Sec. 505): Directs the National Security Agency (NSA) to, within 90 days of enactment, establish an AI Security Center within NSA’s Cybersecurity Collaboration Center. The Center would (1) develop guidance to prevent or mitigate counter-AI techniques. (2) promote secure AI adoption practices for managers of national security systems; and (3) other functions as the Director considers appropriate.

House NDAA AI Provisions

Division A--Department of Defense Authorizations

• Plan for Establishment of Secure Computing/Data Storage Environment for Testing of AI Trained on Biological Data (Sec. 241): Directs the DoD’s Under Secretary of Defense for Research and Engineering to develop a plan for the establishment of a secure computing and data storage environment to facilitate (1) the testing of AI models trained on biological data; and (2) the development and testing of products generated by such models.
• Modification to AI Education Strategy (Sec. 247): Directs each Secretary of a military department to, within 180 days of enactment, provide personnel with distance education courses on (1) the foundational concepts of AI and machine learning and (2) the responsible and ethical use of AI and machine learning applications.
• Report on DoD AI Workforce (Sec. 248): Directs DoD to, within 180 days of enactment, submit a report to Congress that includes (1) an assessment of the effectiveness of the Department’s AI workforce; (2) identification of any gaps in skills and training; and (3) recommendations to preserve and enhance the DoD AI workforce.
• Pilot Program on Improving Marine Corps Supply Chain/Logistics (Sec. 332): Allows the Commandant of the Marine Corps to, within 180 days of enactment, select a unit to carry out a pilot program to improve military supply chain readiness, budget efficiency, and logistics productivity through the integration and use of AI and machine learning software solutions, subject to the availability of appropriations.
• Instruction in AI in Schools Operated by the DoD Education Activity (Sec. 579): Directs the DoD Education Activity to require that each student of a high school operated by the Activity receives instruction in AI and machine learning.
• Use of AI for Audit of DoD Financial Statements (Sec. 1006A): Directs the Secretary of Defense and the Secretaries of the Army, Navy, and Air Force to encourage the use of technology that uses AI or machine learning for the purpose of facilitating audits of DoD financial statements. Within 180 days of enactment, DoD is directed to brief Congress on implementation of the directive, as well as implementation of the 2023 Data, Analytics, and Artificial Intelligence Adoption Strategy.
• DoD Report on Cost Savings from AI Use (Sec. 1069P): Within 90 days of enactment, directs the Undersecretary of Defense to conduct a study and report to Congress on the potential cost-saving measures of incorporating AI and multi-domain, attributable autonomous, semi-autonomous, unmanned systems, capabilities and processes into military department and the civilian workforce.
• Establishment of Multilateral AI Working Group (Sec. 1090): Directs DoD to, within 90 days of enactment, establish a working group to develop and coordinate an AI initiative among U.S. allies and partners. This provision, which is also in the Senate bill, is a revised version of the Five AIs Act (S. 4306/H.R. 6425).