Advancing American AI Act

The Advancing American AI Act is a United States federal statute requiring federal agencies to inventory their artificial intelligence use cases, adopt AI risk-management practices, and develop governance frameworks for AI systems. Enacted as Subtitle B of Title VII of the FY2023 National Defense Authorization Act, it was one of the most significant AI governance laws passed by Congress prior to 2025.

Overview

• Official Title: Advancing American AI Act
• Public Law: Pub. L. 117-263, Title VII, Subtitle B
• Parent Act: James M. Inhofe National Defense Authorization Act for Fiscal Year 2023
• Signed: December 23, 2022
• Citation: 40 U.S.C. § 11301 note

Legislative History

The Advancing American AI Act was included as Subtitle B of Title LXXII (Section 7221 et seq.) of the FY2023 NDAA. The provisions drew from bipartisan proposals to strengthen federal AI governance and were incorporated into the must-pass defense authorization bill. President Biden signed the NDAA into law on December 23, 2022.

Key Provisions

The Act is organized into the following sections:

Section 7221 — Short Title

This subtitle may be cited as the "Advancing American AI Act."

Section 7222 — Purposes

The purposes of the Act include:

• Ensuring the federal government uses AI in a manner that advances innovation while managing risks
• Promoting trustworthy AI development and deployment
• Supporting U.S. leadership in AI

Section 7223 — Definitions

Adopts the definition of artificial intelligence from the National Artificial Intelligence Initiative Act of 2020.

Section 7224 — Principles and Policies for Use of AI

Requires the Director of OMB to:

• Issue guidance on the governance of AI use by federal agencies
• Establish principles for the responsible use of AI
• Address protection of privacy, civil rights, and civil liberties

Section 7225 — AI Use Case Inventory

Requires each federal agency to:

• Inventory all current AI use cases within the agency
• Report the inventory to OMB
• Make non-sensitive portions of the inventory publicly available
• Update the inventory periodically

This provision was the first statutory requirement for comprehensive federal AI use-case reporting.

Section 7226 — AI Risk Management

Requires agencies to adopt AI risk-management practices, including:

• Assessment of AI systems for risks to safety, rights, and civil liberties
• Implementation of risk-mitigation measures
• Compliance with the NIST AI Risk Management Framework

Section 7227 — Chief AI Officers

Each covered agency is required to designate a Chief AI Officer responsible for:

• Coordinating the agency's AI activities
• Ensuring compliance with AI governance requirements
• Advising agency leadership on AI matters

Significance

The Advancing American AI Act was the first federal statute to require agencies to systematically inventory and report their AI use cases, creating unprecedented transparency into how the government deploys AI. The Chief AI Officer requirement established a new leadership position in federal agencies, creating dedicated accountability for AI governance.

The Act's requirements for AI risk management and OMB guidance were codified as statutory mandates, giving them greater durability than executive orders alone. Subsequent OMB memos — including M-24-10 (Biden) and M-25-21 (Trump) — were issued to implement these statutory requirements.

Sources

• GovInfo — Public Law 117-263 (Full Text)
• Congress.gov — Public Law 117-263 (PDF)
• U.S. Code — 40 U.S.C. § 11301
• Brennan Center — AI Provisions in the NDAA

See Also

• National Artificial Intelligence Initiative Act of 2020
• AI in Government Act of 2020
• AI Training Act
• NDAA AI Provisions
• NDAA FY2024 AI Provisions
• Legislation