Skip to main content

The AI 'gold rush' in Washington

Presented by Ericsson: How the next wave of technology is upending the global economy and its power structures
Jun 29, 2022 View in browser
 
POLITICO's Digital Future Daily newsletter logo

By Emily Birnbaum

Presented by Ericsson

With help from Ben Schrekinger.

A Skydio R1 drone

A Skydio R1 drone | AP Photo/Jeff Chiu

AI's little guys are getting into the Washington influence game.

Tech giants and defense contractors have long dominated AI lobbying, seeking both money and favorable rules. And while the largest companies still dominate the debate, pending legislation in Congress aimed at getting ahead of China on innovation, along with proposed bills on data privacy, have caused a spike in lobbying by smaller AI players.

A number of companies focused on robotics, drones and self-driving cars are all setting up their own Washington influence machines, positioning them to shape the future of AI policy to their liking.

A lot of it is spurred by one major piece of legislation: The Bipartisan Innovation Act, commonly referred to as USICA — an acronym for its previous title, and its goal to out-innovate China.

One tech lobbyist, granted anonymity to speak candidly, called AI-lobbying on USICA a "gold rush." If the bill passes as currently written, it will bring about $50 billion in extra research spending over the next five years. Senate Majority Leader Chuck Schumer has touted USICA, previously known as the United States Innovation and Competition Act, as the best response to China's technological dominance.

Robotics company iRobot registered The Vogel Group, a major D.C. firm led by former GOP leadership aide Alex Vogel, to lobby for the bill. Argo AI, an autonomous driving technology company, deployed its in-house lobbyists — including the former chief of staff of Rep. Debbie Dingell (D-Mich.) and former legislative assistant to Sen. Lindsey Graham (R-S.C.) — to lobby on supply chain issues within USICA.

Ryan Hagemann, co-director of the IBM Policy Lab, said "most of the attention" in the AI space is on USICA legislation right now.

But the expansion in lobbying goes way beyond USICA, and it's about more than chasing after government grants.

The most recent version of the American Data Privacy and Protection Act as well as the Algorithmic Accountability Act , propose government-mandated "impact assessments" for any companies that use algorithms. That means companies could suddenly have to turn over audits of their technology to regulators, a lengthy process that some companies argue should only fall to firms that produce "high-risk" AI, such as facial recognition technology used by police to catch criminals, versus "low-risk" AI like chatbots. IBM, for instance, argues that it should not have to perform the same kinds of impact assessments on its general-purpose AI systems as do companies that train AI on their own proprietary data sets.

"It's not a question of who ought to perform the impact assessments, but when the impact assessment should have to occur," Hagemann said.

Merve Hickok, senior of the Center for AI and Digital Policy, a non-profit digital rights advocacy group, says there's a lot at stake. Only a handful of companies would have to submit algorithmic audits if their lobbying is effective.

"You see a lot of companies — not only big tech, but some industry groups as well — pushing and lobbying against these obligations," Hickok said, pointing to efforts underway in Europe.

The definition of what constitutes "AI" is fuzzy in the first place. But a lot of the companies that use AI to operate their technology — such as drone companies — are buckling in for a bumpy ride in Washington. Drone company Skydio, seeking more funding for a Federal Aviation Administration training initiative and drone acquisitions by the Defense Department, almost doubled its lobbying spending from $160,000 in 2020 to $304,000 in 2021. Shield AI, which creates artificial intelligence that controls drones for military operations, went from spending $65,000 on lobbying in 2020 to spending more than $1.5 million in 2021, a number that it is on track to exceed this year. Skydio declined to comment and Shield AI did not respond to a request for comment.

Meanwhile, facial recognition companies like Clearview AI are fighting bills that would pause the use of the technology, such as the Facial Recognition and Biometric Technology Moratorium Acta. Clearview AI, which has faced enormous scrutiny from lawmakers over its controversial facial recognition technology, spent $120,000 on lobbying in 2021 after registering lobbyists for the first time in May 2021.

Hickok pointed out that U.S. lobbying around AI is still dominated by big companies like Google and Amazon, even with the proliferation of smaller companies registering to lobby. Hickock said that because the U.S. has not passed significant AI regulations, it has become "a testbed, while the corporations are enjoying the benefits."

 

A message from Ericsson:

Ericsson helps the U.S. build 5G infrastructure. Ericsson is the leading provider of 5G equipment in the U.S. From our 5G smart factory in Lewisville, Texas, we are able to supply equipment directly to leading nationwide service providers. Learn more at ericsson.com/us.

 
CLAIMING A STAKE

The financial crisis in crypto markets continues today, with a court in the British Virgin Islands ordering the liquidation of crypto hedge fund Three Arrows Capital.

POLITICO's Sam Sutton reports that two executives from the politically connected consulting firm Teneo will oversee that process.

For investors curious about how and why the fund got to this point — and worried about what could further destabilize crypto markets — a new report today from on-chain analytics firm Nansen traces some of the interconnected moves. "Dominoes are falling," is how Nansen researcher Andrew Thurman summarized it in an email.

The report highlights the role of staked Ether, a derivative of Ether, the second-largest cryptocurrency, issued by Lido Finance. (Staked Ether is not the currency itself, but rather a token that can be redeemed for Ether after the Ethereum network completes a complicated upgrade process.) When times were booming, the market treated staked Ether like it was as good as Ether. But last month, as the algorithmic stablecoin TerraLuna melted down, staked Ether began to trade at a discount to the real thing.

Three Arrows had invested in both Luna and staked Ether; after the TerraLuna meltdown, it sold its staked Ether at a loss, said Thurman, and ultimately couldn't recover.

Despite the fears of further contagion provoked by Three Arrows' downfall, the market may now get a respite. Thurman said the on-chain positions of crypto lender Celsius — which recently raised concerns by suspending withdrawals — have improved and that emergency measures taken by Lido appear to have calmed investors.
- Ben Schreckinger

 

A message from Ericsson:

Advertisement Image

 
FACE TIME

A new GAO report on government use of facial recognition tech found that a slew of federal and state agencies use facial recognition. The GAO found that most of these agencies did not assess the privacy risks associated with the facial recognition. Fourteen agencies ranging from NASA to the Department of Justice use facial recognition to unlock agency-issued smartphones. It's a sign that facial recognition has become so quotidian that it's taken for granted, leading agencies to use it without fully parsing its implications.
- Konstantin Kakaes

 

Industry Leaders at One-Day Tech Event on July 21: The American dream is a MerITocracy – powered by policy and technology as they relate to education and workforce, global competitiveness, security and privacy, and citizen services. On July 21, join tech industry visionaries from Dell, Google Cloud, DocuSign, and Consumer Technology Association, in addition to Hill and Biden Administration leaders as they discuss the future of tech innovation, regulation, and outcomes for America at MeriTalk's MerITocracy 2022: American Innovation Forum. Sign up here.

 
 
The Future In 5 Links

- Popular apps for tracking pregnancy and ovulation reserve the right to turn user data over to law enforcement, a Forbes analysis found.

- Are cutting-edge technologies just too hard to scale?

- A finance professor offers a world-historical way to think about blockchains.

- It's possible that AI can manufacture ideas

- What does "human-centered" AI actually look like?

 

A message from Ericsson:

Ericsson. 5G Made for US.

5G will be a platform for a new economy, driven by cutting edge use cases that take advantage of 5G's speed, low latency and reliability. Ericsson's 120 year history in the U.S. and recent investments, like the $100 million factory in Texas, make the company the right partner to build the open and secure networks that will be the backbone of the 5G economy.

Learn more.

 
 

Follow us on Twitter

Ben Schreckinger @SchreckReports

Derek Robertson @afternoondelete

Konstantin Kakaes @kkakaes

Heidi Vogt @HeidiVogt

 

Follow us

Follow us on Facebook Follow us on Twitter Follow us on Instagram Listen on Apple Podcast
 

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings

This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA

Please click here and follow the steps to unsubscribe.

Comments

Popular Posts

💡The most innovative iPhone trick of the year.

Watch the performance: The ULTIMATE every-day carry. Make the physical light on the back of your iPhone come to life and move around. Then hand everything out for examination. This is a wildly innovative idea you have to see to believe.   ...

Google Alert - Swift

Swift Daily update ⋅ November 28, 2017 NEWS The World's Best Driver's Car Under $18000 Is A Suzuki Swift Sport Forbes What better way to regain the interest of a generation that has fallen out of love with the car than to give it a super hot hatch like the Suzuki Swift Sport? Flag as irrelevant Taylor Swift tops Billboard chart for second week in a row... after breaking record with Reputation ... Daily Mail She broke a personal best record by selling 1.29 million copies of Reputation in the first week of it's release last week. And Taylor Swift has kept the success train running. The 27-year-old singer's latest album has topped the charts for the second week in a row according to Billboard. According to the ... Taylor Swift's 'Reputation' Is No. 1 Again, but Will It Maintain Its Momentum? - New York Times Chart Watch: Ta...

The GOP popularity contest

Presented by New Jersey Coalition of Automotive Retailers: Matt Friedman's must-read briefing on the Garden State's important news of the day Mar 06, 2025 View in browser   By Matt Friedman Presented by  ...

Breaking News: Top lawmakers strike funding deal, potentially averting weekend shutdown

Breaking News Alert Top lawmakers strike funding deal, potentially averting week...

New today: The #1 best selling mind-reading wallet of the year

"This is the best mentalism device I've seen in many years! Bar none." - Steven Palmer TL;DR:  Our most requested upgrade from pros. The best selling mind-reading wallet is now available for the first time in genuine leather for only $59.95 .  It's also available in a new color, midnight blue for only $39.95 We only have 150 genuine leather Razor Wallets, so they'll go fast. No more will arrive before Christmas. Genuine Leather Razor Wallet (only 150 available) https://www.penguinmagic.com/p/16650 ...

Market Outlook 🚀 - Markets on Pace for Worst Month Since March 2020

Wages increase 1% in Q4 2021 Inside.com Part of   Network January 31, 2022 Presented by US Markets Stock Market futures are down slightly  on the last trading day of January, which is on track to be the worst month for U.S. equities since March 2020.  The S&P 500 is down 7% in January and down 8% from its highest point this month.  The Nasdaq is down 12% this month and 15% from its November high.  The current 10 Year U.S. Treasury yield is set at 1.79400% Dow Jones  34,725.47 1.65% S&P 500  4,431.85 2.43% Nasdaq  13,770.57 3.13% Russell 2000 1,968.51 1.93% *Stock Market data as of the last closing bell. Data received directly from the references indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer.   ...

Ludo, you have 2 new friends

    A lot has happened on Facebook since you last logged in. Here are some notifications you've missed from your friends.       Ludo Maallam             2 new friends               You have new notifications.             A lot has happened on Facebook since you last logged in. Here are some notifications you've missed from your friends.       Ludo Maallam             2 new friends               Go to Facebook     View Notifications             This message was sent to ludomallam@idiot.cloudns.cc . If you don't want to receive these emails from Facebook in the future, please unsubscribe . Facebook, Inc., Attention: Community Support, 1 Facebook Way, Menlo Park, CA 94025         To help k...

Cyber Monday digital sales up 9.6% / Walmart launches shoppable video series / Dollar Tree to 'review' Family Dollar stores

Plus, Saks to shut down e-commerce fulfillment center Inside Ecommerce For November 30, 2023 Thank you to our sponsor Today's e-commerce briefing digs into: Cyber Monday's strong YoY sales growth this year Walmart's announcement of its first shoppable video series Saks' plan to shut down a fulfillment center in Pennsylvania Enjoy! Gregory p/Gregory_Bridgman 1 U.S. digital sales on Cyber Monday rose 9.6% YoY in 2023.  Online shoppers made widespread use of mobile buy now, pay later (BNPL) offerings, according to an Adobe Analytics report . More: U.S. shoppers spent $12.4B online on Cyber Monday, up 9.6% YoY. Online sales between Thanksgiving and Cyber Monday rose 7.8% YoY to $38B.  Sales over the Thanksgiving weekend rose 7.7% to 10.3B. BNPL purchases between Nov. 1 and Nov. 27 expanded 17% YoY to $8.3B This month is set to be the biggest ever for installment payment transactions, according to Ad...

EA's football game reboots with solid sales / Deep Dive: Car listings up, sales down / Nike's revenue misses, but earnings and margins beat

Plus, Big Deal Round-Up Inside Business For September 29, 2023 Thank you to our sponsor Happy Friday Insiders!! Today's Business newsletter covers: 🎮 Gaming: EA's football game reboots with solid sales 🚗 Deep Dive: Car listings up, sales down 👟 Nike's revenue misses, but earnings and margins beat If you enjoy reading this newsletter, please share it with your friends and colleagues.  Make sure to continue reading for Quick Hits and the Knowledge Hub. Thank you!! Shriram p/Shriram 1 Electronic Arts (EA) changed the name of their well-known football video game franchise from "FIFA" to "EA Sports FC," and pre-release sales for the new game have skyrocketed, with 6.8 million individuals have purchased pre-release access, a 25% increase over the previous year's edition. The long-standing business relationship between EA and FIFA, which brought in roughly $150M a year in the past, ...

Ask the Dietitian: Does warm lemon water boost health?

TikTok says yes, but what do the experts say? ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­ ͏ ‌     ­...