Committee Passes Peters Bipartisan Bill to Ensure the Federal Government Safely and Responsibly Purchases and Uses Artificial Intelligence

WASHINGTON, D.C. – A bipartisan bill authored by U.S. Senator Gary Peters (MI) to establish guardrails to ensure the federal government can harness the potential of artificial intelligence (AI) technology, while safeguarding against potential harms, has advanced in the Senate. As federal agencies are seeking to ramp up their purchase and use of AI systems, there is a pressing need to set standards and safeguards that will ensure the adoption of safe, secure and trustworthy AI to serve the American public. The legislation requires agencies to assess and address the risks of their AI uses prior to buying and deploying the technology. Additionally, the bill ensures the federal government reaps the benefits of this technology through the creation of pilot programs to test more flexible, competitive purchasing practices. This landmark legislation builds on requirements in the Advancing American AI Act, led by Peters, which became law in 2022. The bill was approved by the Senate Homeland Security and Governmental Affairs Committee, where Peters serves as Chair. It now moves to the full Senate for consideration. 

“While AI has the capacity to greatly enhance federal services, we must be vigilant about its deployment,” said Senator Peters. “These new measures will guide agencies in adopting AI technologies responsibly, ensuring that taxpayer-funded systems are not only effective but also trustworthy.” 

The federal government is already using AI to interact with and make decisions about the public, and use of the technology is only expected to grow. While AI technology can help improve government efficiency, it can also pose risks if deployed improperly. The bipartisan Promoting Responsible Evaluation and Procurement to Advance Readiness for Enterprise-wide Deployment (PREPARED) for AI Act will guide the federal government’s activities, personnel and processes to effectively and responsibly procure and use AI. The bill requires agencies to determine whether their AI uses are high risk, with a focus on protecting the public’s rights and safety. The bill will require government contracts for high risk AI to include safety and security terms for data ownership, civil rights, civil liberties and privacy, adverse outcome reporting and other key areas. It also requires agencies to identify, test, and monitor potential risks before, during, and after they buy AI for high risk uses – including through ongoing testing and evaluation to mitigate potential risks. The bill also requires agencies to establish AI governance structures, including through Chief AI Officers, to lead and coordinate these efforts. The legislation would also establish pilot programs to better enable agencies to purchase technology including AI, which would bolster innovative adoption. Finally, the bill includes key provisions to encourage transparency of the government’s use of AI systems through public disclosures and reporting.  

The PREPARED For AI Act is supported by the Center for Democracy and Technology, Transparency Coalition, the AI Procurement Lab, the Institute of Electrical and Electronics Engineers (IEEE-USA), and the U.S. Federal Market for IBM Technology. Below are statements in support of the legislation: 

“As agencies consider incorporating AI into government services and other processes, they must do so responsibly – working to protect people’s rights and ensure the responsible use of taxpayer dollars,” said Alexandra Reeve Givens, President & CEO of the Center for Democracy & Technology. “The bipartisan PREPARED for AI Act lays a strong foundation by codifying transparency, risk evaluation, and other safeguards that will help agencies make smarter and more informed procurement decisions. We look forward to working with Senators Peters and Tillis to advance best practices and accountability in the government’s use and procurement of AI.” 

“The Transparency Coalition.Al writes to express our firm support of the proposed PREPARED for Al Act, which will provide much needed guidance for Federal Government agencies using Artificial Intelligence (AI) as part of their operations. The PREPARED for Al Act deftly addresses the need for transparency around inputs, protecting data privacy while encouraging innovation, growth, and competition within this rapidly emerging industry,” said Rob Eleveld, TCAI Chairman. 

“The U.S. must ensure that innovation does not come at the expense of its citizens. Historical values that procurement promotes—price, competition, and innovation—do not adequately address the transparency, expertise, and oversight needed to manage AI risk. The PREPARED for AI Act helps to address these government challenges,” said Gisele Waters, Ph.D., and Dr. Cari Miller Co-Founders of the AI Procurement Lab. 

“While AI can promote innovative societal and economic benefits, it must be acquired and used within risk-mitigating frameworks that prevent potential harms such as critical failures and even loss of life. The requirements set forth in this bill provide the best path forward to help mitigate those harms,” said Keith Moore, Institute of Electrical and Electronics Engineers (IEEE-USA) President. “We believe that the PREPARED for AI Act, which recognizes the role that standards play in providing necessary best practices, will provide federal agencies with the AI governance framework they need.” 

“AI can enhance government service delivery, improve efficiency, and accelerate decision making. Strong governance is critical for responsible adoption of AI by federal agencies and to allow for proper accountability and transparency on how AI is being used,” said Susan Wedge, managing partner, and Vanessa Hunt, general manager, U.S. Federal Market for IBM Technology. “It’s in this vein that IBM is proud to support the bipartisan Promoting Responsible Evaluation and Procurement to Advance Readiness for Enterprise-wide Deployment (PREPARED) for AI Act, as it takes a risk-based approach to governance and gives federal agencies a clear framework for holding AI creators and users accountable for taking steps to protect against potential harms. The federal government’s purchasing power can set the bar for adopting trustworthy AI.” 

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