Policy Backgrounders
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Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

AI Executive Order

November 02, 2023

The President signed a long-awaited Executive Order on AI that establishes the first mandates for testing and disclosure for leading-edge AI models, while providing a comprehensive set of directives for federal agencies to begin assessing their internal uses of AI and developing guidelines for safe development and deployment.

  • New mandates will apply to the highest-performing AI models; companies developing these models will need to notify the Federal government when training AI models, providing information related to training data, testing methodology, and testing results.
  • Federal agencies received wide-ranging directives to assess AI use in government work processes, to review risks to national security and other threats related to AI, and to establish guidelines on standards for AI and data privacy.
  • The Order is likely to add pressure on Congress, where numerous proposals seeking to establish a more comprehensive AI framework have stalled in recent months. This includes the Administration’s call for Congress to pass legislation to protect data privacy as a foundation for the AI framework. Achieving the goals of the Order also require additional resources to be made available to agencies to boost technology staffing and capabilities. 

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