McCormick floats dedicated department to handle AI

U.S. Sen. Dave McCormick, R-Pa., said that putting artificial intelligence regulation in the hands of the federal government poses risks, and floated an alternative: an industry-led group, modelled on FINRA, that would establish regulations, oversight and compliance. The arrangement he described would place standard-setting and compliance in an industry-led body rather than in a federal agency.

In describing the risks of federal involvement, McCormick pointed to the government's pandemic response and to the government's handling of Silicon Valley Bank. The excerpt does not elaborate on how either episode relates to artificial intelligence oversight. As described, the FINRA-like group would carry three functions — establishing regulations, providing oversight and administering compliance — rather than a single advisory role. The excerpt does not specify which firms or sectors would take part, how the group would be constituted or whether it would hold enforcement powers.

As reported, the proposal sets federal regulation against an industry-led model, with FINRA cited as the example for the latter. The account does not indicate whether McCormick intends to introduce legislation, nor does it name co-sponsors, a timeline, a proposed agency or a statutory vehicle for the arrangement. The remarks as reported concern the structure of AI oversight rather than any specific model, deployment, company or capability.