AI regulation bill aims to prevent harm from AI: Rep. Lieu

US Rep. Ted Lieu (D-Ca.) is a part of the bipartisan effort introducing the Federal Artificial Intelligence Risk Management Act to Congress. The bill aims to provide AI regulatory guidelines for federal agencies and companies collaborating or contracting with the government.

Rep. Lieu joins Yahoo Finance's Akiko Fujita and Rachelle Akuffo to discuss the bill's focus on being "process-orientated" in comparison to European efforts to regulate AI.

"So one way is to put in a process-orientated approach making the federal government and companies think about the AI they're deploying and how they themselves make sure that the AI they're using doesn't harm people," Rep. Lieu explains. "Another... is to make sure that our existing legal structure can go after harms caused by AI, whether it's discrimination in hiring or giving out of loans."

Click here to watch more of Yahoo Finance's "AI Revolution" special coverage this week, or you can watch this full episode of Yahoo Finance Live here.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

AKIKO FUJITA: Well, lawmakers in the US are pushing forward in their effort to regulate artificial intelligence. A group of nonpartisan congressmen unveiling a bill that would require federal agencies to abide by AI guidelines put forth by the Commerce Department last year. One of those behind the proposed bill, California representative Ted Lieu joins us now to discuss.

Congressman, it's good to talk to you today. Let's talk about what's at stake first. What is the risk you are looking to address through this bill?

- Thank you for your question. Let me first say that the S&P 500 closed at a record high last Friday, the Dow exceeded 38,000 for the first time in US history yesterday. So the economic policies of the Biden-Harris administration and Congress are working. And part of those policies includes making sure that artificial intelligence continues to innovate, but does so in a safe way that doesn't harm people.

AKIKO FUJITA: So to follow up though specifically, Congressman, when you talk about this bill, what is the risk you are looking to address?

TED LIEU: And so what this bill does is it mandates that the standards set forth by the National Institute of Standards and Technology be applied to both the federal government, as well as any companies that want to contract with the federal government. This is known as an AI risk management framework. It's already in existence in both the private sector and public sector. And what it does is it makes companies and institutions think about how they're using AI in their own corporations or their own organizations to make sure that it's safe, that there's AI governance that doesn't unnecessarily harm people, and it doesn't have effects that will really continue to harm either their company or their organization.