Buckeye broadband support cspan as a Public Service along with these other Television Providers giving you a front row seat to democracy. Microsoft president brad smith testified on ways to regulate Artificial Intelligence which he joined other witnesses to discuss transparency laws and the idea of labeling products like images and videos as being made by ai. This hearing before the Senate Judiciary subcommittee on privacy, technology and the law is about 2 hours and 20 minutes. The hearing of our subcommittee on privacy, technology, and the law will come to order. I want to welcome our witnesses, the audience who are here, and say a particular thanks to senator schumer who has been very supportive and interested in what we are doing here and also to chairman durbin whose support has been invaluable in encouraging us to go forward here. I have been grateful to my partner in this effort, senator hawley and i produced a framework basically, a blueprint for a path forward to achieve legislation. Our interest is in legislation. This hearing along with the two previous ones has to be seen as a means to that end. We are very result oriented. I know you are from your testimony. I have been enormously encouraged and emboldened by the response so far, just in the past few days and my conversations with leaders in the industry like mr. Smith, there is a deep appetite, hunger for rules and guardrails, basic safeguards for businesses and consumers, people in general, from the panoply of potential payroll. There is the desire to make use of potential benefits. Our effort is to provide for regulation and the best sense of the word. Regulation that permits and encourages innovation and new business and technology and entrepreneurship and provides those guardrails, and forcible safeguards that encourage confidence or growing technology, new technology entirely, has been around for decades but Artificial Intelligence regarded as entering a new era and make no mistake, there will be regulation, the only question is how soon and what. It should be regulation that encourages the best in American Free enterprise and provides protections we do in other areas of our economic activities. To my colleagues who say there is no need for new rules we have enough laws protecting the public, we have laws that prohibit unfair and deceptive competition, laws that regulate Airline Safety and drug safety but nobody would argue simply because we have those rules we dont need specific protections for medical devices or car safety. Because we have rules that prohibit discrimination in the workplace meaning we dont need rules that prohibit discrimination in voting. We need to make sure these protect framed and targeted in a way that apply to the risks involved. Riskbased rules managing the risks is what we need to do here. Our principles are pretty straightforward. We have no pride of authorship. We circulated this to encourage comment. We wont be offended by criticism from any quarter. That is the way to make this framework better and eventually achieve legislation by the end of this year. The framework is establishing a licensing regime for companies that are engaged in highrisk Ai Developers. Creating an independent oversight body that has expertise with ai and works with other agencies to administer and enforce the law, protecting national and Economic Security to make sure we arent enabling china or russia and other adversaries to interfere in our democracy or violate human rights requiring transparency to limit the use of ai models and at this point include rules like watermarking, Digital Disclosure when ai is being used and data access for researchers. Ensuring that ai companies can be held liable when their products violate civil rights, and danger the public, deep fake impersonations, hallucinations. We have all heard those terms and need to prevent those harms and senator hawley and i as former attorneys general of our state have deep and abiding affection for the Enforcement Powers of state officials, there is effective enforcement. Private rights of action and federal enforcement are very important. Let me just close by saying before i turn it over to my colleagues, we will have more hearings. The way to build a coalition in support of these measures is to disseminate as widely as possible, for colleagues to understand what is at stake. We need to listen to Industry Leaders and experts we have before us today, to act with dispatch. If we let this horse get out of the barn, it will be even more difficult to contain than social media. We are seeking to act on social media right now as we speak. I asked sam altman what his greatest fear was, i said mine, my nightmare is the massive unemployment that could be created, what we dont deal with directly, it shows how wide the ramifications may be and we need to deal with worker displacement and training and this new era is one that portends enormous promise but also peril. I will turn now to Ranking Members senator hawley. Thank you for organizing this hearing. This is the third of these hearings weve done. I have learned a lot in the previous couple. Some of what we are learning about the potentials of ai is exhilarating. Some of it is horrifying and i think what i hear the chairman saying and what i agree with is we have a responsibility here now to do our part to make sure this new technology which holds a lot of promise but also peril actually works for the american people. It is good for working people, families, that we dont make the same mistakes congress made with social media, 30 years ago congress outsourced social media to the biggest corporations in the world, that has been nearly an unmitigated disaster, where we had the biggest, most powerful corporations not just in america and the history of the globe doing whatever they want with social media, running experiments basically every day on americas kids, inflicting Mental Health harms the likes of which weve never seen, messing around in our elections in a way that is deeply deeply corrosive to our way of life. We cannot make those mistakes again. We are here as senator blumenthal said to financers and make sure this technology is something that benefits the people of this country have no doubt, with all due respect to corporates in front of us, heads of these corporations, no doubt it will benefit your companys. What i want to make sure of is it benefits the american people. I look forward to this. Thank you, mr. Chairman. I want to introduce our witnesses and as is our custom i will swear them in and ask them to submit their testimony. Welcome to all of you, chief scientist joined in january 2009 as chief scientist, spending 12 years at Stanford University where he was chairman of the Computer Science department. He has published over 250 papers. He holds 120 issued patents and is the author of four textbooks. Brad smith is vice chair and president of microsoft. As microsofts vice chair and president he is responsible for spearheading the companys work in representing a wide variety of Critical Issues involving the intersection of technology and society including Artificial Intelligence, Cyber Security, privacy, and environmental sustainability, human rights, digital safety, immigration, philanthropy, product and business for nonprofit customers. We appreciate your being here. Professor woodrow hartsaga from the class of 1960 scholar at Boston University school of law and also a nonresident fellow at policy and medicine and law at Washington University, faculty associate at the berkman Client Center for internet and society at harvard university. A scholar at the center for internet and society at stanford law school. I could go on about each of you at much greater length with all of your credentials. But suffice it to suffice it to say, very impressive and the you now stand i will administer the oath. [witnesses were sworn in] thank you. Why do we begin with you, mr. Dally . Chairman blumenthal, Ranking Member hawley, thank you for the privilege to testify today. Invidious chief scientist and im delighted to discuss Artificial Intelligence journey future. Invidious is the forefront of its computer genitive and i contact those the potential to transform industries, address global challenges, profoundly benefit society. Gl since our founding in 1993 e have been committed to developing technology to empower people and improve the quality of life worldwide. Today over 40,000 Companies Using nvidia platforms across media and entertainment, scientific computing, healthcare, financialut service, internet services, automotive and manufacturing to solve the worlds most difficult challenges and bring new products and services to consumers worldwide. At rfidd in 1893 we were a 3d graphic startup. One of dozens of startups competing to create entirely new market for accelerators to enhance Computer Graphics for games. In 1999 we admitted the Graphics Processing Unit or gpu which could perform a massive number ofof calculations and parallel. We launched the gpu for gaming and recognize the gpu that accelerate any application that could benefit from massively processing. This that nato. Today researchers worldwide innovate on nvidia gpu use. Through a collective effort with major advances in ai that will revolutionize and provide tremendous benefits to society across sectors such as healthcare, medical research, education, business, cybersecurity, climate and beyond. However we also recognize like any new product or service and i products and services have risks. Risks. Those who make and use or so ai enabled products and services are responsible for their conduct. Fortunatelyr many uses of ai applications are subject to existing laws and regulations that govern the sectors in which they operate. Ai enabled services at high risk sectors could be subject to enhance licensing and certification ornaments when necessary. What other applications with less risk of harm may be less stringent licensing and or regulation. Clear, stable and thoughtful regulation Ai Developers will work to benefit society while making product and services as safe as possible. For our part nvidia is committed to the safe and Trustworthy Development and women of ai. For example, guardrails are open Source Software empowers developers to guide genitive ai applications for i could come appropriate and secure text responses. Nvidia has implemented Model Risk Management guidance and chewing a comprehensive assessment and management of risk associated withre nvidia developed models. Today nvidia announces it is endorsing the white house is voluntary commitment on ai. As we support the eye more broadly we cant and will continue to identify and address risks. No discussion of ai would be complete without addressing what is often described as frontier ai modelss get some have expressed your front to model will evolve into uncontrollable artificial general intelligence which could escape our control and cause harm. Fortunately uncontrollable artificial general intelligence is Science Fiction, not reality. Its core ano i is a Software Program that is limited by its training, the inputs provided to the nature of its output. In other words, humans will always decide how much decisionmaking power to see the ai models. So long as were thoughtful and measured we can interstate come trustworthy unethical to appointment of ai systems without suppressing innovation. We can spur innovation by ensuring ai tools are widely available to everyone, not concentrated in the handsne of a few powerful firms. I will close with two observations. First, it the aig is out of the bottle. Theyre widely published and available to all. He ai software can be transmitted anywhere in the world at the press of a button. Many Ai Development tools and frameworks opened a show models are open sourced. It second, no nation and certainly no Company Controls aco chokepot to Ai Development. Platforms are competing with companies from around the world what u. S. Companies make only be the most energy efficient, cost efficient and easiest to use, they are not the only viable alternatives for developers abroad. Other nations are filthy ai systems with or without u. S. Components and they will offer those applications in the worldwide market. Safe and trust with the ai will and multistakeholder cooperation or it will not be effective. The United Statest is in a remarkable position today in with your help we can continue toit lead on policy and innovatn well into the future. Nvidia stand ready to work with you to ensure the development and deployment of genitive ai and excelerator computing so the best interest of all. Thank you for your opportunity to testify before this committee. Thank you very much. Esther smith. Chairman blumenthal, Ranking Member hawley, members of the subcommittee, my name is brad smith. Onth the vice chair president of microsoft and thank you for the opportunity to be here today and i think more importantly thank you for the work that youve done to create the framework you have shared. Chairman blumenthal, thank you put it very well at first, we need to learn an act with dispatch. And Ranking Member hawley, i think you offer real words of wisdom. Lets learn from the experience the whole world had with social media, and lets be clear eyed about the promise and the peril in equal measure as a look to the future ofas ai. I would firstly i think your framework does that. It doesnt attempt to answer every question by design. But its a very strong and positive step in the right direction. And puts the u. S. Government on the path to be a Global Leader in entering a a balanced apprh that will enable innovation to go forward with the right legal guardrails in place. As we all think about this more i think its worth keeping three goals in mind. First, lets prioritize safety and security which with yk does. Lets require licenses for advanced ai models and uses in high risk scenarios. Lets have an agency that is independent and can exercise real and effective oversight over this category. Category. And then lets couple that with the right kinds of controls that will ensure safety of the sort weve already seen i think start to emerge in the white house commitments that were launched on july 21st. Second, lets prioritize as you do the protection of our citizens and consumers. Lets Prioritize National security. Always in a sense in some ways the First Priority of the federal government. But lets think as well as you have about protecting the privacy, the civil rights and the needs of kids. Among many other ways of working and ensure we get this right. Lets take the approach that you are recommending namely focus not only on those companies that develop ai, like microsoft, as well as companies that deploy ai like microsoft. In different categories we are going to need Different Levels of obligations. And as we go forward lets think about the connection between say the role of a Central Agency that will be on point for certain things as well as the obligations that frankly will be part of the work of many agencies. And indeed our courts as well. And lets do one other thing as well. Maybe it is one of the most important things we need to do so we ensure that the threats that many people worry about remain part of Science Fiction and dont become a new reality. Lets keep ai under the control of people. It needs to be safe. And to do that as we have encouraged there needs to be safety brakes especially for any ai application or system that can control Critical Infrastructure. If a Company Wants to use ai to say control the electrical grid or all of the self driving cars on our roads or the water supply, we need to learn from so many other technologies that do great things but also can go along. We need a safety break just like we have a Circuit Breaker in every building and home in this country to stop the flow of electricity if that is needed. Then i would say lets keep one third goal in mind as well. This is the one where i was just you maybe consider doing a bit more to add to the framework. Lets remember the promise that this offers. Right now if you go to state capitals you go to other countries, i think there is a lot of energy being put on that. When i see what Governor Newsom is doing in california or governor bertram in north dakota. I see them at the forefront of figuring out how to use ai to say improve the delivery of healthcare. Advanced medicine. Improve education for our kids. And maybe most importantly make it Government Services or use the savings to provide more and Better Services to our people. That would be a good problem to have the opportunity to consider. In sum, professor hartsock has said this is not a time for half measures. It is not he is right. Lets go forward as y