|
HOUSE E&C COMMITTEE PROPOSES
MORATORIUM ON AI STATE LEGISLATION
| NAIA BACKS MORATORIUM - MULTIPLE STATE AI REGULATIONS UNWORKABLE | | |
- Trump Arrives in the Middle East and Announces Billions in AI and Defense Deals
- US Copyright Office Releases 3rd Report; Trump Releases Copyright Director
- WH AI Advisor, David Sacks, Talks Partnerships and Agentic Future
- More Lawsuits Impacted by AI Hallucinations = Fines & Dismals
- House Energy & Commerce Propose 10-Year Moratorium on State AI Regulations - NAIA Agrees!
- Senate Commerce, Science and Transportation Committee Hearing on Winning the AI Race and Heads Up on Moratorium
- Member Focus: Pivotal Edge Capital
- Watch the Video on How to Join Hundreds of AI Companies in NAIA's Member Community
- Coming Soon: New Website Under Construction
- Attend AI+ Expo in Washington, June 2-4: NAIA Booth #633
- Become a NAIA Member Today!
| | |
President Trump Travels to the Middle East and Pens Numerous AI and Defense Deals
Saudi Arabia was the first stop yesterday on President Trump's trip through the Middle East and the White House announced the first of many transactions related to AI expected during his foreign travels.
The Saudis are looking to make its economy less dependent on oil revenue and aims to position itself as a leading center for AI activity outside the United States. A new company called Humain was established and will operate under the Saudi Arabia Public Investment Fund, which will offer AI services and products, including data centers, AI infrastructure, cloud capabilities and advanced AI models. Nivida, AMD, AWS, Google, Microsoft, OpenAI and numerous other US tech companies announced billions in investments and Saudi purchases. DataVault of Saudi Arabia announced a $20 billion investment in AI infrastructure sites in the United States and the President also announced a $142 billion arms sale to the Kingdom. HERE is the White House Fact Sheet on the transactions.
(Note: In last week's NAIA Digest we covered the Trump Administration's changes to the Biden AI Chip Export restrictions HERE).
| | |
Third Part of US Copyright Office's Report on "Copyright and AI" Released; Copyright Chief Fired by President Trump
The U.S. Copyright Office has produced three reports on "Copyrights and Artificial Intelligence" as it relates to the legal and policy issues. The first report (HERE), released in July of 2024 titled "Digital Replicas", reviewed the use of digital technology to realistically replicate an individual’s voice or appearance, The second report (HERE) on "Copyrightability" was released in January of this year. It addresses the ability to copyright works created using generative AI.
The third, pre-publication (HERE) titled "Generative AI Training" was released last Friday (May 9) and addresses training of AI models on copyrighted works, licensing considerations, and allocation of any liability.
The Copyright Office’s report states that “the copying involved in AI training threatens significant potential harm to the market for or value of copyrighted works,” adding: “Where a model can produce substantially similar outputs that directly substitute for works in the training data, it can lead to lost sales. Even where a model’s outputs are not substantially similar to any specific copyrighted work, they can dilute the market for works similar to those found in its training data, including by generating material stylistically similar to those works.”
And continues “The assessment of market harm will also depend on the extent to which copyrighted works can be licensed for AI training. Voluntary licensing is already happening in some sectors, and it appears reasonable or likely to be developed in others—at least for certain types of works, training, and models.”
There is speculation that President Trump fired Shira Perlmutter, Register of Copyrights and Director of the U.S. Copyright Office, since the policy papers have not been accepted well by the AI industry. The U.S. Copyright Office advises Congress but the reports are not legally binding.
| | |
AI White House Senior Advisor David Sacks Talks US AI Partnerships and the Next Wave of Agentic Future at US-Saudi Forum
Joining President Trump in Saudi Arabia, the White House's AI and Crypto Senior Advisor, David Sacks, sat down with Saudi Minister of Communications and Information Technology Abdullah Alswaha at the US-Saudi Arabia Investment Forum on Tuesday. Sacks addressed how "the United States needs to encourage the world to build on our tech stack".
Sacks relays about the need for strategic partners, "And I think about how is it that we do that? How do we win the AI race? And the answer is that we have to build the biggest partner ecosystem. We need our friends like the Kingdom of Saudi Arabia and other strategic partners and allies to want to build on our tech. And yet, over the past few years, that's been the opposite of the approach in Washington."
Sacks also mentioned the work on Model Context Protocol (MCP) he saw in Saudi Arabia. "MCP is a new standard that allows agents to talk to existing SaaS applications or any kind of application. And it's really going to enable this agentic future that I think is the next big wave in AI."
Read HERE the transcript or watch HERE (starts a 50 minute mark) the discussion with David Sacks.
| | |
More Hallucinations In Courts: Non-Existent Legal Citations Generated by AI Leads to Fines and Dismals
Lawsites, a service tracking technology for the legal profession, reported today (May 14) HERE about two more cases that have emerged where lawyers submitted briefs containing non-existent legal citations generated by AI tools. One in California and another in Canada. In both cases, the Judges severely reprimanded the law firms including fines and dismals.
"Despite the mounting pile of sanctions, public embarrassment, and judicial warnings, attorneys continue to submit AI-generated hallucinations to courts....One wonders how many more judges will need to impose sanctions before the message sinks in: AI tools may be useful for brainstorming, but they are not substitutes for traditional legal research and the age-old practice of actually checking your citations."
| |
House Energy & Commerce Committee Proposes Moratorium on State AI Regulations and NAIA Agrees
Inserted in the House Energy and Commerce Committee’s new budget reconciliation bill is a clause that imposes a ten-year moratorium related to state regulation of artificial intelligence:
Section 43201. Artificial intelligence and information technology modernization initiative.
Subsection (c) states that no state or political subdivision may enforce any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems during the 10-year period beginning on the date of the enactment of this Act. Majority Memorandum for May 13, 2025, Committee on Energy and Commerce Markup Page 10.
As Congressman Jay Obernolte (R-CA), stated during the hearing “No one wants this to go on for ten years”. However, as he relayed (and NAIA agrees) this is the job of Congress, not the states. “Congress needs to get its act together,” he said, and enact AI legislation to back up federal regulators with a comprehensive AI framework. The legislation will now head from the Energy & Commerce Committee to a floor vote in the House before it heads to the Senate (see the below article).
NAIA, since our formation, has consistently pushed the Administration and Congress to pass a comprehensive national law related to "data management" covering data security, data privacy and artificial intelligence regulation. It is a challenge for AI companies, whether large enterprises or startups, to manage the varying and numerous AI regulations being implemented by the states. We have proposed the "American Data Management & Artificial Intelligence Act" (HERE) as a solution.
NAIA has issued a statement of support on the proposed moratorium which you can read by following the link below and we have forwarded the statement to Members of Congress on our Members behalf. Please reach out to your Member of Congress in support of the moratorium.
| | |
Senate Commerce, Science and Transportation Hearing on "Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation"
“The way to beat China in the AI race is to outrace them in innovation, not saddle AI developers with European-style regulations. Growth and development of new AI technologies will bolster our national security, create new jobs, and stimulate economic growth. This hearing will help us find ways to remove restraints on the AI supply chain and unleash American dominance in machine learning and next-generation computing.” stated Senate Commerce, Science and Transportation Committee Chairman Ted Cruz (R-TX).
Senator Cruz gave us a heads up on the proposed ten-year moratorium on state regulations last week. The Senate Committee held a hearing last Thursday (May 8) and the witnesses were OpenAI CEO Sam Altman, Microsoft Vice Chair and President Brad Smith, CEO of semiconductor maker AMD Lisa Su, and Michael Intrator, co-founder of AI cloud computing startup CoreWeave.
Sam Altman and the other witnesses relayed that the United States was not that far ahead of China, that several of America's AI models are still the best in the world but the government needs to (a) prioritize infrastructure for AI data centers, invest in training more electricians to build those data centers, access to public data (see above) and (b) have a "light-touch" when comes to regulations.
Chairman Cruz in his final question gave us the heads up on the House energy & Commerce Committee's move asking “Would you support a 10-year learning period on states issuing comprehensive AI regulation or some form of federal preemption to create an even playing field for AI developers and deployers?”
Watch and read the testimonies at the Senate Hearing HERE.
| | NAIA Members: Do you have questions or comments on any of the legislation being submitted in Congress? Contact us at Membership@theNAIA.org | | |
MEMBER FOCUS: PivotalEdge Capital founded by NAIA Senior Advisor Sid Ghatak
Sid Ghatak has an amazing tech background, previously serving as Chief Enterprise AI Architect for the Federal Energy Regulatory Commission (FERC) and Technology Strategist for GSA handling large scale, mission critical, transformation projects for the the US government including his input on the 2023 AI Executive Order. He agreed to become a NAIA Senior Advisor and his new company, PivotalEdge Capital is a NAIA Member.
PivotalEdge is a leading-edge asset management firm utilizing proprietary Predictive Artificial Intelligence solutions to drive fully systematic trading strategy.
| |
Would you like to connect with NAIA's Senior Advisor, Sid Ghatak or any one of the hundreds fellow NAIA Members?
You can in NAIA's (Glueup) Community!! You have (or will) receive an invitation to set up your NAIA account and begin to interact with Groups (see below) and your fellow members of NAIA. Signing up for events, sharing contact information and providing your input on AI government policies! Click HERE or the image above to watch a short video on how to participate in Your National Artificial Intelligence Association!
Thank you for all your support and we look forward to continuing to build an organization dedicated to keeping America #1 in artificial intelligence across the world. If you have any issues with your Community login, contact Ron@thenaia.org
| NEW WEBSITE UNDER CONSTRUCTION | NAIA is building a new website! Hard to believe that the first one created only four months ago is now outdated. With the addition of our trade association management and member community platform, we will provide more content and features to the NAIA Membership. Look forward to sharing the news in the next couple of weeks. In time for the expo (see below). | | |
JOIN US AT AI+ EXPO IN JUNE - BOOTH #633
Over 15,000 artificial intelligence professionals will attend the AI+ Expo on June 2 -4 at the Washington, DC Convention Center to listen and learn (and join the Hackathon?).
"The powerful purpose behind this one of a kind event is to serve as a forum for industry, government, and academic research entities to exhibit some of the latest technological breakthroughs – in AI, biotech, energy, networks, compute, microelectronics, manufacturing, augmented reality, and beyond – and discuss their implications for U.S. and allied competitiveness."
Registration is free and learn more HERE.
| | |
Check you filter to make sure the NAIA Digest is not going to spam and below are links to the last seven NAIA Digests if you missed them. Note: we will soon have all the back editions of the newsletters posted on the new NAIA website which is under development:
NAIA Digest v1.11: Gov. Youngkin Vetoes AI Overreach Bill, New GSA AI Tool, Trump CIOs and EOs and more
NAIA Digest v1.12: CREATE AI Act, More China Controls, Quantinuum Joins NAIA, Prompts for Politics and more
NAIA Digest v1.13: New OMB Policies on Fed AI Acquisition, House Hearings on AI Innovation, TAKE IT DOWN Act passes and more
NAIA Digest v1.14: Big Changes in $1T Gov Spending, AI Tool for Hill Staffers, Tariffs Impact on AI and more
NAIA Digest v1.15: AI Concerns Americans; AI Education for K-12; GPT for Leg Staffers and more
NAIA Digest v1.16: Busy AI Policy Week, New AI R&D RFI, Take It Down Act Passes and more
NAIA Digest v1.17: OSTP Defines Trump AI Policy, AI - Quantum Fed Research Money, Hearings, New Legislation and more
| | |
Membership dues paid to the National Artificial Intelligence
Association (NAIA - EIN 33-1713769) are 95% tax deductible as an
ordinary and necessary business expense in accordance with
the lobbying provision of the federal 1993 Budget Reconciliation
Act. Contributions to 501(c)(6) organizations are not deductible as charitable contributions on the donor's federal income tax return.The organization must be an association of persons having some common business interest and its purpose must be to promote this common business interest.
| | | | |
