From the future of AI safety to national security threats posed by AI, this week’s stories explore the intersection of innovation and regulation. Dive into the latest federal ruling on TikTok's divestiture, bipartisan efforts to protect kids online, and how AI is shaping access to public benefits. Stay ahead of the curve on tech policy that’s shaping America’s digital and national security future in the final weeks of the 118th Congress.

In this week’s Nimitz Tech:

• FTC: Data brokers accused of turning Americans’ private lives into a surveillance economy.

• Report: Are AI systems meant to streamline public benefits leaving low-income Americans behind?

• China: Winning the AI race doesn’t mean compromising safety—smart regulation can bolster trust, innovation, and U.S. leadership.

WHO’S HAVING EVENTS THIS WEEK?

Tuesday, December 10th

• 🛩️ HOUSE HEARING: “Safeguarding the Homeland from Unmanned Aerial Systems,” House Committee on Homeland Security, Subcommittee on Counterterrorism, Law Enforcement, and Intelligence. Hearing scheduled for 2:00 PM in 310 Canon HOB. Watch here.

TECH NEWS DRIVING THE WEEK

In Washington

• The Federal Trade Commission (FTC) is taking unprecedented action against Mobilewalla and Gravy Analytics, two data brokers accused of unlawfully collecting and selling sensitive location data. Mobilewalla allegedly tracked protesters, domestic abuse survivors, and religious communities, while Gravy Analytics sold billions of location signals to entities like federal law enforcement. The FTC’s settlements, pending court approval, would prohibit these companies from collecting and using sensitive location data and require the deletion of previously acquired data. While the FTC aims to protect Americans’ privacy, critics within the agency and external voices, including Senator Ron Wyden, highlight ongoing concerns about warrantless government data purchases. These actions mark a significant step in regulating the data broker industry but reveal deep divides on the role of privacy and surveillance in public life.

• A bipartisan group of six senators is urging House Republican leaders to prioritize passing the Kids Online Safety and Privacy Act (KOSPA) before year-end. In a letter to Speaker Mike Johnson and Majority Leader Steve Scalise, the senators emphasized the urgent need to protect children from the mental, emotional, and physical harms of social media. The KOSPA package, which passed the Senate in July, includes the Kids Online Safety Act (KOSA), aimed at regulating harmful online features, and COPPA 2.0, which updates a 1998 law to ban targeted advertising for minors and enhance data privacy protections. While the package advanced in the House Energy and Commerce Committee, leadership has hesitated to bring it to a vote, citing concerns over provisions like KOSA’s “duty of care” requirement, which has been amended in the House version. With limited time in the lame-duck session, senators, including coauthors Marsha Blackburn and Richard Blumenthal, continue to press for action amid growing public concern over the risks children face online.

• President-elect Donald Trump has named venture capitalist David Sacks as the White House’s first AI and cryptocurrency czar, signaling a commitment to positioning the U.S. as a global leader in these emerging technologies. Sacks, a prominent Silicon Valley figure and early PayPal executive, will oversee policy development for artificial intelligence and cryptocurrency, with a focus on free speech, technological innovation, and reducing regulatory hurdles. His appointment has garnered praise from conservatives in the tech and crypto sectors, including endorsements from Blockchain Association CEO Kristin Smith and Palantir adviser Jacob Helberg. Sacks will also lead the President’s Council of Advisors for Science and Technology and help craft a legal framework for crypto, addressing industry frustrations over the Biden administration’s regulatory approach. This move reflects Trump’s broader strategy to embrace the digital economy, a shift underscored by his recent pro-crypto stance and record-high Bitcoin prices following his election victory.

National

• A report by TechTonic Justice reveals that AI and automated decision-making systems are increasingly determining access to critical public benefits, often with harmful consequences for low-income Americans. The report highlights failures in Medicaid eligibility, fraud detection for food stamps, and Social Security data-matching, which have mistakenly denied benefits to eligible individuals. Founder Kevin De Liban warns these systems prioritize cost-cutting over fairness, exacerbating hardships for vulnerable populations. With the incoming Trump administration considering deeper cuts to social programs and further reliance on AI for efficiency, advocates urge transparency, accountability, and community involvement in AI policy to mitigate these risks. The report underscores the immediate need to address AI's real-world impacts, contrasting it with theoretical debates about advanced AI risks.

• A U.S. federal appeals court has upheld a law requiring ByteDance, the Chinese owner of TikTok, to divest its U.S. operations by January 19, 2024, or face an unprecedented ban on the app used by 170 million Americans. The ruling, celebrated by the Justice Department, frames the law as a bipartisan effort to mitigate national security risks, citing concerns over China's potential access to and manipulation of American users' data. TikTok plans to appeal to the Supreme Court, while free speech advocates, including the ACLU, argue the decision violates the First Amendment. The ruling deepens U.S.-China trade tensions, with Beijing condemning the move as "commercial robbery" and warning of its impact on bilateral relations.

International

• Arguments against AI regulation, often framed as a need to outpace China, overlook the benefits and affordability of mandatory safety testing, argues Claudia Wilson. In her article, she explains how pre-deployment evaluations, such as red-teaming and automated benchmarking, can mitigate risks like AI misuse and alignment failures without slowing innovation. Safety testing, at just a fraction of training costs, could increase trust in AI, driving adoption and economic growth while maintaining U.S. military advantages through private partnerships with AI firms. Rather than undermining competition, Wilson highlights that market consolidation stems from high training costs and suggests addressing this through antitrust policies. She concludes that balancing innovation, safety, and national security is not only possible but essential to ensuring AI benefits society and secures U.S. global leadership.

FOR FUN

• 🖼️ Paris 1874: The Impressionist Moment | 11 a.m. | Free | National Mall

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