AI in the Senate and House Versions of the FY 2024 National Defense Authorization Act

Published: August 03, 2023

Federal Market AnalysisArtificial Intelligence/Machine LearningDEFENSENational Defense Authorization ActPolicy and Legislation

AI-related provisions in the Senate and House versions of the FY 2024 NDAA touch on DOD research priorities, potential opportunities, and regulation.

Last week, the House and Senate passed their versions, H.R.2670 and S.2226, of the FY 2024 National Defense Authorization Act (NDAA). As both chambers currently reconcile the House version with Senate amendments, we see several AI-related provisions in both versions that have the potential to impact future DOD investment, procurement, and use of the technologies.

Below are some thoughts on select provisions, in addition to the insight provided last week by my colleague on two additional selections.

H.R.2670, Section 930: Framework for classification of autonomous capabilities

Absent a current framework and common understanding for autonomous capabilities, the House NDAA calls for the CDAO to establish a roadmap to integrate autonomous capabilities into DOD systems. Specifically, the plan will identify current and future systems across DOD that can be integrated with autonomy software.

Implications: To create the framework, the NDAA provision calls for an assessment to identify the current gaps in program funding, training, testing and acquisition processes for autonomous solutions. Accordingly, the resulting framework will likely streamline and prompt the funding and procurement of autonomous capabilities throughout DOD.  

S.2226, Section 218: Competition for technology that detects and watermarks the use of generative artificial intelligence

This section of the Senate NDAA calls for a prize competition for either applications, tools and/or models for the detection and watermarking of generative AI. The provision stems from concerns of potential threats generative AI may pose. Essentially, the prize competition aims to acquire solutions that would identify the presence of generative AI in digital content.

Implications: Aside from the prize competition resulting in one or more awards, the NDAA provision instructs DOD to scale such solutions from research to production.

S.2226, Section 222: Update to plans and strategies for artificial intelligence

The provision directs the Secretary of Defense to conduct a periodic review of DOD’s AI strategy. Moreover, it requires Defense-wide guidance with short- and long-term plans in the adoption of AI, enforcement of policies on AI ethical use, methods to monitor accountability for AI activity, and more. The provision also calls for the development of a plan in the use and cybersecurity of generative AI.

Implications: The guidance and policies resulting from this provision will likely result in contractor assistance to implement them. For example, as DOD puts in place measures to protect from adversarial AI, the department would require additional security measures and red team capabilities. Furthermore, putting such measures in place would prompt Defense agencies and military leaders to explore additional AI capabilities for complex environments as regulation would be in place to help do so securely.

The below chart details the complete list of AI and emerging technology-related provisions found in the House and Senate versions of the FY 2024 NDAA.

Note that the provisions may not make it into the final bill but are worth a look at their potential to generate upcoming business opportunities for contractors.