Policy Development -- Issue Surfacing: Artificial Intelligence (AI)

Policy Development is the process to help Farm Bureau members guide the organization on the challenges facing agriculture. AFBF is asking state Farm Bureaus to review the following policy topic that needs further review for the 2024 Policy Book.

Artificial Intelligence (AI) for AFBF Policy Book

Background

What is AI? AI can generally be thought of as computerized systems that work and react in ways commonly thought to require intelligence, such as solving complex problems in real-world situations.

AI programming focuses on cognitive skills that include the following:

• Learning. This aspect of AI programming focuses on acquiring data and creating rules for how to turn it into actionable information. The rules, which are called algorithms, provide computing devices with step-by-step instructions for how to complete a specific task.
• Reasoning. This aspect of AI programming focuses on choosing the right algorithm to reach a desired outcome.
• Self-correction. This aspect of AI programming is designed to continually fine-tune algorithms and ensure they provide the most accurate results possible.
• Creativity. This aspect of AI uses neural networks, rules-based systems, statistical methods and other AI techniques to generate new images, new text, new music and new ideas.

Why is AI important? AI is important for its potential to change how we live, work and play. It has been effectively used in business to automate tasks done by humans, including customer service work, fraud detection and quality control. In a number of areas, AI can perform tasks much better than humans. Particularly when it comes to repetitive, detail-oriented tasks, such as analyzing large numbers of legal documents to ensure relevant fields are filled in properly, AI tools often complete jobs quickly and with relatively few errors. Because of the massive data sets it can process, AI can also give enterprises insights into their operations they might not have been aware of. The rapidly expanding population of generative AI tools will be important in fields ranging from education and marketing to product design.

The proliferation of artificial intelligence (AI) has the potential to transform nearly every industry, and government affairs is certainly no exception. AI tools are emerging with capabilities that could rewrite much of how this industry works.

What are the applications of AI?

Artificial intelligence has made its way into a wide variety of areas. Here are a few examples that have implications for everyday life, including agriculture.

• AI in finance and business markets. AI in finance applications is disrupting financial institutions. Applications such as these collect personal data and provide financial advice. Machine learning algorithms are being integrated into analytics of financial transactions for trends in trading of commodities and stocks. Today, artificial intelligence software performs much of the trading on Wall Street.
• AI in banking. Banks are successfully employing chatbots to make their customers aware of services and offerings and to handle transactions that don't require human intervention. AI virtual assistants are used to improve and cut the costs of compliance with banking regulations. Banking organizations use AI to improve their decision-making for loans, set credit limits and identify investment opportunities.
• AI in transportation. In addition to AI's fundamental role in operating autonomous vehicles, AI technologies are used in transportation to manage traffic, predict delays and make ocean shipping safer and more efficient. In supply chains, AI is replacing traditional methods of forecasting demand and predicting disruptions.

AI governance and regulations

Despite potential risks, there are currently few regulations governing the use of AI tools, and where laws do exist, they typically pertain to AI indirectly. For example, as previously mentioned, U.S. fair lending regulations require financial institutions to explain credit decisions to potential customers. This limits the extent to which lenders can use deep learning algorithms, which by their nature are opaque and can’t be easily explained.

Policymakers in the U.S. have yet to issue AI legislation, but that could change soon. A "Blueprint for an AI Bill of Rights," published in October 2022 by the White House Office of Science and Technology Policy, guides businesses on how to implement ethical AI systems. In April, Senate Majority Leader Chuck Schumer (D-NY) announced a policy framework to address regulation of AI. Additionally, Congress has recently held numerous hearings on the issue of AI.

What is the issue? Crafting laws to regulate AI will not be easy, in part because AI comprises a variety of technologies that companies use for different applications and purposes. In addition, regulations can come at the cost of AI progress and development. The rapid evolution of AI technologies is another obstacle to forming meaningful regulation of AI, as are the challenges presented by AI's lack of transparency, which make it difficult to see how the algorithms reach their results.

RESOURCES:

• White House AI Bill of Rights Blueprint Oct 2022- Office of Science and Technology Policy:
  • https://www.whitehouse.gov/ostp/ai-bill-of-rights/ 
  • https://www.whitehouse.gov/wp-content/uploads/2022/10/Blueprint-for-an-AI-Bill-of-Rights.pdf
• White House Actions to Promote Responsible AI Innovation
• Congressional Research Service Report: Generative Artificial Intelligence and Data Privacy: A Primer
• George Mason University/Mercatus Center: Artificial Intelligence: An Introduction for Policymakers
• U.S. Chamber of Commerce: Commission on Artificial Intelligence Competitiveness, Inclusion, and Innovation 
• U.S. Chamber of Commerce: Artificial Intelligence Commission: Preparing for the Future 
• Information Technology Industry Council (ITI): Just launched, “AI Futures Initiative”
• ITI’s Roadmap for AI

Questions for Policy Development:

The 2023 AFBF Policy Book has one specific mention of AI and another tangential mention at:

• 102 / Constitution, 8.10. (We oppose:) The use of any artificial intelligence to impact or compromise constitutionally protected individual rights and liberties or those that compromise national or industrial security and their autonomy.
• 223 / Commodity Futures and Options, 2.12., (We support:) Increasing oversight by CFTC of futures exchanges and floor traders to ensure that integrity of these markets is maintained and to curb practices that result in manipulation or artificial price swings.

1) AFBF does not have specific policy supporting technology that includes artificial intelligence. Should our policy address the regulation of artificial intelligence?

2) From your perspective, how should artificial intelligence be regulated?

Action for State Farm Bureaus:

During your Policy Development process, we recommend that policy recommendations be submitted through the regular process for review during the Resolutions Meeting in December 2023. This policy issue may be addressed as a 600, New Policy Title and Number. If approved by the Delegates, staff recommend a new policy under Section 1, in the Miscellaneous sub-section.