The House Small Business Committee this week promoted new artificial intelligence-focused legislation aimed at continuing to push government agencies it oversees to incorporate artificial intelligence into their operations and making those efforts more transparent.
At Wednesday’s markup, the committee unanimously approved the SBA Artificial Intelligence Utilization Act (HR 8881) from Minnesota Republican Rep. Brad Finstad and New York Rep. George Latimer. The bill would require the Small Business Administration to submit an annual report to Congress detailing the benefits, risks, and related issues of the use of AI and machine learning.
The committee’s additional oversight of the SBA’s AI program follows this month’s Government Accountability Office report calling attention to the SBA’s long-standing failure to comply with federal requirements regarding the AI Use Case Inventory.
In March, the agency released its inventory for the first time in SBA history, even though it was two months past the Office of Management and Budget deadline.
A House committee spent much of this year debating a bill that would provide the SBA with more AI tools to assist customers. In January, both the AI for Main Street Act and the AI-Wisdom for Innovative Small Businesses (AI-WISE) Act were passed by the full House.
The first bill, sponsored by Missouri Republican Rep. Mark Alford and Michigan Democratic Rep. Hilary Scholten, directs the SBA’s Small Business Development Center to provide guidance, training and assistance to small businesses on all issues related to AI. The latter bill, by Scholten and Rep. Troy Downing (R-Mont.), would task the SBA with creating AI resources and learning modules for small businesses that would be hosted on existing agency platforms.
Finstad said in Wednesday’s Markup that the committee’s latest bill is just a “common sense oversight measure” and would not mandate the use of AI at the SBA or “prohibit innovation” with the agency’s technology. It’s simply about giving Congress “more visibility into these new tools” and determining “whether they can help the SBA better fulfill its mission to small businesses as technology evolves,” he said.
Latimer echoed Finstad’s comments, noting that the bill would require the agency to better understand AI use cases, an “important step” for small businesses that need to be aware of the technology’s benefits and risks.
“This reflects that as a nation we are grappling with the growth of AI with potential applications that come with great benefits, potential benefits, and great potential risks,” the New York Democrat said. “And then there are accuracy and data privacy issues that affect all of us on both sides of the aisle.”
The House Small Business Committee passed two other tech-related bills Wednesday by a 23-0 margin.
The Small Business Technology Act (HR 915) by Alford, D-Nev., and Rep. Susie Lee makes clear that the SBA can make 7(a) loans to small businesses to access the latest business software, cloud computing services, AI tools, and other technologies that power business operations.
“This bill does not create any new programs or expand the size or scope of the 7(a) program,” Alford said. “We simply update SBA policies to reflect the realities of today’s economy and ensure small businesses invest in the tools they need to grow and compete.”
Meanwhile, the Small Business Cybersecurity Assistance and Assessment Act (HR 8880), by California Democratic Rep. Latefa Simon and Pennsylvania Republican Rep. Rob Bresnahan, requires GAO to assess cyber risks to small businesses.
“GAO will also identify existing federal programs, initiatives, and capital resources that entrepreneurs can use to prepare for, mitigate, and protect themselves every day against these attacks,” Simon said. “This bill aims to ensure we have the best data available to develop effective policies to protect small businesses from these attacks.”
