AI Provisions in the FY 2024 NDAA

Published: January 04, 2024

Artificial Intelligence/Machine LearningDefense & AerospaceIntelligenceNational Defense Authorization ActPolicy and Legislation

Several AI requirements are included in the finalized version of the FY 2024 NDAA.

Shortly before commencement of the holiday season, Congress passed and the President signed, H.R.2670 - National Defense Authorization Act for Fiscal Year 2024. Though the primary purpose of the NDAA is to authorize funding for DOD and DOD-related activities, the annual legislation typically includes additional policies and requirements outside the DOD environment.

Last week, I touched on the 2023 events surrounding AI and what to expect in 2024, indicating that AI systems and models will continue to expand in the federal space. The FY 2024 NDAA holds true to this with a number of AI and AI-related provisions throughout the 970+ page document. Below is a complete summary of those sections from the legislation. Most of the provisions stem from draft versions of the bill, however, there are some new ones that seemed to have been added to the final. Those are indicated below in bold print.

Section

Description

Sec. 346

Directs the CDAO and Air Force to create a pilot program utilizing AI to enhance aerial refueling operations and fuel management processes.

Sec. 350

Instructs Navy pilot an AI digital platform to analyze data on the maintenance and condition of shipboard assets at shipyards.

Sec. 1521

Establishes the Chief Digital and Artificial Intelligence Officer Governing Council to oversee and streamline DOD AI use cases and guidance

Sec. 1523

Requires the CDAO to improve data assets and the acquisition of data analytics tools for users.

Sec. 1541

Revises CDAO responsibilities to include evaluation of acquisition authorities to accelerate data and AI objectives.

Sec. 1542

Establishes bug bounty programs for foundational AI models that are integrated into DOD mission and operations.

Sec. 1543

Institutes a prize competition for applications and tools for generative AI detection and watermarking with the intention to foster research and development and ultimately scale such solutions.

Sec. 1544

Directs the creation of strategic plans in areas such as AI accountability and performance indicators, generative AI use, a common glossary for AI-related activities, and AI system and model integrity and security.

Sec. 1545

Establishes a study on the functionality of AI-enabled military applications.

Sec. 6303

Creates the Chief AI Officer role at State to facilitate AI/ML adoption and scale AI use cases.

Sec. 7507

Directs ODNI and IARPA to develop a program advancing microelectronics research to advance future technologies such as AI/ML, generative AI and quantum.  

Sec. 7510.

Requests ODNI provide a briefing on analyst education and accountability of AI and ML tools in intelligence products.

Sec. 7513

Directs the creation of IC policies in areas of AI procurement, continuous monitoring, and testing and evaluation.  

Market Implications: The NDAA specifies some particular AI use cases for the DOD, but most of the provisions here concentrate on creating plans and authorities for faster acquisition and deployment of AI in U.S. defense missions and operations. Help in developing this regulation will be needed. Secure AI adoption is also a priority as DOD tries to establish the tools, practices, programs, and tech environment to ensure safe integration of the technology at the department. Investments to support AI environments such as improved data assets and analytics will keep growing. Contractors can also expect a continued push from DOD and the IC to move AI solutions from research to production, particularly in areas concerning cyber operations. Finally, the NDAA indicates continued exploration of generative AI at the DOD.