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US Proposes Requiring Reporting for Advanced AI, Cloud Providers

A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights
A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights
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US Proposes Requiring Reporting for Advanced AI, Cloud Providers

A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights
A sign in front of Department of Commerce building is seen before an expected report of new home sales numbers in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo Purchase Licensing Rights

The US Commerce Department said Monday it is proposing to require detailed reporting requirements for advanced artificial intelligence developers and cloud computing providers to ensure the technologies are safe and can withstand cyberattacks.

The proposal from the department's Bureau of Industry and Security would set mandatory reporting to the federal government about development activities of "frontier" AI models and computing clusters.

It would also require reporting on cybersecurity measures as well as outcomes from so-called red-teaming efforts like testing for dangerous capabilities including the ability to assist in cyberattacks or lowering barriers to entry for non-experts to develop chemical, biological, radiological, or nuclear weapons.

External red-teaming has been used for years in cybersecurity to identify new risks, with the term referring to US Cold War simulations where the enemy was termed the "red team."

Generative AI - which can create text, photos and videos in response to open-ended prompts - has spurred excitement as well as fears it could make some jobs obsolete, upend elections and potentially overpower humans and have catastrophic effects, Reuters reported.

Commerce said the information collected under the proposal "will be vital for ensuring these technologies meet stringent standards for safety and reliability, can withstand cyberattacks, and have limited risk of misuse by foreign adversaries or non-state actors."

President Joe Biden in October 2023 signed an executive order requiring developers of AI systems that pose risks to US national security, the economy, public health or safety to share the results of safety tests with the US government before they are released to the public.

The rule would establish reporting requirements for advanced artificial intelligence (AI) models and computing clusters.

The regulatory push comes as legislative action in Congress on AI has stalled.

Earlier this year, the BIS conducted a pilot survey of AI developers. The Biden administration has taken a series of steps to prevent China from using US technology for AI, as the burgeoning sector raises security concerns.

Top cloud providers include Amazon.com's AWS, Alphabet's Google Cloud and Microsoft's Azure unit.

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Apple's iPhone 16 to Put AI Features in Focus, Huawei's New Phone Racks up Pre-orders

A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. REUTERS/Nicoco Chan/File Photo Purchase Licensing Rights
A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. REUTERS/Nicoco Chan/File Photo Purchase Licensing Rights
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Apple's iPhone 16 to Put AI Features in Focus, Huawei's New Phone Racks up Pre-orders

A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. REUTERS/Nicoco Chan/File Photo Purchase Licensing Rights
A visitor checks a mobile phone near the Huawei logo during the Mobile World Congress in Shanghai, China June 28, 2023. REUTERS/Nicoco Chan/File Photo Purchase Licensing Rights

Apple on Monday is set to unveil its iPhone 16, focusing on how its flagship device's features are infused with artificial intelligence, but it could be upstaged by a triple-folding smartphone released by China's Huawei hours earlier.

Apple's event at the tech giant's Apple Park headquarters starts at 10 a.m. PDT (1700 GMT). Huawei has scheduled an announcement of its Mate XT phone just hours after the Apple presentation, Reuters reported.

The Chinese company's website showed on Monday that it had garnered more than 3 million pre-orders for its Z-shaped tri-fold phone. This underscores Huawei's ability to navigate US sanctions and solidifies its position against Apple in China, where consumers are hankering for more AI features and are willing to pay for them.

Apple shares were down 1.25% in morning trading.

"The Chinese market is hungrier for AI features than the US market," said Ben Bajarin, CEO and principal analyst at Creative Strategies. For Apple, "it will be very difficult to bring it to China immediately, so they'll be going off the merits of the hardware."

Apple unveiled Apple Intelligence at its developer conference in June, its take on generative AI that can conjure text, images and other content on command.

But these upgrades will take time to reach consumers.

Apple Intelligence features are expected to launch in a software update to the iPhone and iPad operating system likely in October and a full upgrade of Apple's voice assistant Siri is likely to come only early next year, according to media reports.

Apple Intelligence must be approved by Beijing in order to be released in the Chinese market. In July, OpenAI blocked access to ChatGPT in China, a move that could impact the chatbot's integration into Siri.

IPhones accounted for more than half of Apple's $383 billion sales last year, and the new devices are an important update for the Cupertino, California-based company that is betting the AI feature will drive consumers to upgrade amid a slowdown in iPhone sales.

In China, Apple aggressively slashed prices earlier this year, prompted by government restrictions and increased domestic competition.

The iPhone 16 lineup will be the first Apple smartphones designed around these AI features, though those will also be available on iPhone 15 Pro and Pro Max, the top-end versions of the previous-generation devices. New versions of the Apple Watch and AirPods are also expected.

"The software side, and how Apple frames it, is the biggest question," said Bajarin. "Investors will look for if it's compelling enough to have a larger-than-normal upgrade cycle."

Rivals including Alphabet's Google are also showcasing AI features to try to upend Apple's dominance in the high-end smartphone market.

Google, developer of the Android operating system which competes with Apple's iOS, traditionally announced its Pixel smartphones in the autumn. This year, it pushed the event to August ahead of Apple's announcement.

Google focused on AI features including Gemini Live, which allows users to hold live voice conversations with a digital assistant. Many of the AI features Google announced were also rolled out to the Android-based devices made by manufacturers such as Samsung and Motorola.

"The question is who is going to be the first to combine a truly personal AI assistant with knowledge and information that is accurate and personalized," said Bob O’Donnell, chief analyst for TECHnalysis Research.

Apple has so far shared a timeline for the release of Apple Intelligence only in the United States, where it is slated to launch on compatible devices in the autumn.

In June, one week after its developer conference, Apple said it would delay the release in Europe due to European Union tech rules.