[Senate Hearing 118-647]
[From the U.S. Government Publishing Office]



                                                        S. Hrg. 118-647
                                                        
               THE STATE OF ARTIFICIAL INTELLIGENCE AND
                 MACHINE  LEARNING  APPLICATIONS TO IM-
                 PROVE DEPARTMENT OF DEFENSE OPERATIONS

=======================================================================


                                HEARING

                               before the

                     SUBCOMMITTEE ON CYBERSECURITY

                                 of the

                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE


                    ONE HUNDRED EIGHTEENTH CONGRESS


                             FIRST SESSION

                               __________

                             APRIL 19, 2023
                               __________




         Printed for the use of the Committee on Armed Services




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                 Available via http: //www.govinfo.gov
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                      COMMITTEE ON ARMED SERVICES

                   JACK REED, Rhode Island, Chairman
JEANNE SHAHEEN, New Hampshire        ROGER F. WICKER, Mississippi                     
KIRSTEN E. GILLIBRAND, New York      DEB FISCHER, Nebraska                       
RICHARD BLUMENTHAL, Connecticut      TOM COTTON, Arkansas                        
MAZIE K. HIRONO, Hawaii              MIKE ROUNDS, South Dakota                     
TIM KAINE, Virginia                  JONI ERNST, Iowa                    
ANGUS S. KING, Jr., Maine            DAN SULLIVAN, Alaska                    
ELIZABETH WARREN, Massachusetts      KEVIN CRAMER, North Dakota                                  
GARY C. PETERS, Michigan             RICK SCOTT, Florida            
JOE MANCHIN III, West Virginia       TOMMY TUBERVILLE, Alabama                            
TAMMY DUCKWORTH, Illinois            MARKWAYNE MULLIN, Oklahoma                                  
JACKY ROSEN, Nevada                  TED BUDD, North Carolina                              
MARK KELLY, Arizona                  ERIC SCHMITT, Missouri                                    

                   Elizabeth L. King, Staff Director
                 John P. Keast, Minority Staff Director
                                 
                                 ------

                     Subcommittee on Cybersecurity

               JOE MANCHIN III, West Virginia, Chairman
KIRSTEN E. GILLIBRAND, New York      MIKE ROUNDS, South Dakota     
GARY C. PETERS, Michigan             JONI ERNST, Iowa         
TAMMY DUCKWORTH, Illinois            TED BUDD, North Carolina              
JACKY ROSEN, Nevada                  ERIC SCHMITT, Missouri


                                                 
                                  (ii)






















                                  

                            C O N T E N T S

                              -----------

                             april 19, 2023

                                                                   Page

The State of Artificial Intelligence and Machine Learning             1
  Applications to Improve Department of Defense Operations.

                           Member Statements

Statement of Senator Joe Manchin.................................     1

Statement of Senator Mike Rounds.................................     3

                           Witness Statements

Matheny, Jason G., President and Chief Executive Officer, Rand        4
  Corporation and Commissioner, National Security Commission on 
  Artificial
  Intelligence.

Sankar, Shyam, Chief Technology Officer and Executive Vice            7
  President, Palantir.

Lospinoso, Josh, Co-Founder and Chief Executive Officer, Shift5..    12

                                 (iii)

 
                  THE STATE OF ARTIFICIAL INTELLIGENCE
                   AND MACHINE  LEARNING  APPLICATIONS 
                   TO  IMPROVE  DEPARTMENT OF  DEFENSE
                   OPERATIONS

                              ----------                              

                       WEDNESDAY, APRIL 19, 2023

                                   United States Senate,
                             Subcommittee on Cybersecurity,
                                   Committee on Armed Services,
                                                    Washington, DC.
    The Subcommittee met, pursuant to notice, at 9:32 a.m., in 
room 222, Russell Senate Office Building, Senator Joe Manchin 
(Chairman of the Subcommittee) presiding.
    Subcommittee Members present: Senators Manchin, Peters, 
Rosen, Rounds, and Schmitt.

            OPENING STATEMENT OF SENATOR JOE MANCHIN

    Senator Manchin. Committee will come to order. Thank you 
all for coming. I appreciate it very much. The subcommittee 
meets this morning to receive testimony from outside experts 
and industry leaders on developments in artificial intelligence 
and machine learning in the private sector that may have 
benefits for the Department of Defense. Our witnesses today are 
Dr. Jason Matheny.
    Dr. Matheny is President and Chief Executive Officer (CEO) 
of RAND Corporation and Commissioner of the National Security 
Commission on Artificial Intelligence (AI). We have Mr. Shyam 
Sankar--okay, thank you, sir. Chief Technology Officer of 
Palantir.
    I knew your CEO very well, and Mr. Josh Lospinoso, did I 
get that right? Good. Chief Executive Officer of Shift5. We 
welcome our witnesses to the Committee and thank them for their 
willingness to share their insights with us. This Subcommittee 
has been keenly interested in the Department of Defense's (DOD) 
approach to adopting and integrating artificial intelligence, 
or AI, into the Department of Defense processes.
    We recognize the opportunity that AI represents to 
radically influence how DOD fights and defends and operates, 
which was the chief reason we supported the establishment of 
the National Security Commission on Artificial Intelligence in 
the 2019 National Defense Authorization Act (NDAA).
    The results from the Commission, as well as the seeming 
overnight success of generative AI systems like ChatGPT and 
DALL-E have reinforced our instincts that AI will be a game 
changer for DOD, the United States, and our industry partners. 
However, say--to stay ahead of our potential adversaries, we 
also have to be working at a speed and scale that keeps us 
ahead of any progress that they are currently making.
    To do that, we need to identify key technologies and 
integrate them into our systems and processes faster than they 
can. That means harnessing innovation in the commercial 
marketplace to gain speed, but also reduce barriers for those 
tools to be implemented within DOD for the benefit of our 
warfighters. Some of the challenges we are facing are 
technical.
    While user friendliness and reliability are key attributes 
needed for commercial and defense markets for the Department, 
the applications deployed must be more secure and trusted. 
Meaning we understand the logic behind its algorithms, so it 
cannot be used in unintended ways, and have more rigorous 
policy enforcement mechanisms to prevent misuse or unintended 
use.
    Because we have heard much in the press on debates over 
potential biases and algorithms, I think it would be helpful if 
the witnesses can share their thoughts on what is happening on 
the commercial side to identify and remedy the bias in their 
algorithm development.
    How do you all bake this consideration into your software 
development process is the question we would like to have 
answered. Also, with the discussions on ethical implications of 
AI, we would appreciate your thoughts on how you think about 
this from your corporate perspective, but also how do you think 
the Pentagon and U.S. Government should be approaching these 
debates?
    Last, I would like to ask our witnesses to touch on what I 
believe is DOD's most crucial resource in AI development, data. 
We collect vast quantities of data, which is the knowledge base 
for any artificial intelligence, but do regularly run into 
issues of ownership and management of that data.
    I believe it is clear to the Subcommittee that data should 
be agnostic, if it is collected through DOD mission. The 
Pentagon owns it and should be able to use it across the 
entirety of our systems. I would also like to point to some of 
the progress that is being made, especially within the 
Department.
    I mentioned earlier the National Security Commission on 
Artificial Intelligence, they did a fantastic job of providing 
a framework for us to think about these issues and made some 
great recommendations, many of which we have enacted in 
previous NDAAs. But there are still others that haven't been 
implemented that we should be considering.
    Finally, I would like to commend the Department for the 
progress in establishing the Chief Data and Artificial 
Intelligence Officer, or CDAO. In short--and in very short time 
they have established themselves to make positive progress in 
both sides of the job, improving the Department's data and 
pushing adoption of AI tools.
    There too, we still have progress. We can do better. 
Position DOD to deal with the future security challenges that 
we know they are going to face. With that, I turn to my friend 
Senator Rounds, for any remarks he may have.

                STATEMENT OF SENATOR MIKE ROUNDS

    Senator Rounds. Well, thank you, Senator Manchin, for 
convening this very important hearing today. I think you will 
find that our opening statements are going to be very similar 
in nature.
    We really do appreciate all of you coming and participating 
in this with us today. In 2018, the Department of Defense 
published its foundational strategy on artificial intelligence.
    The strategy predicted that AI was poised to change the 
character of the future battlefield and the pace of threats 
that we must face. Nearly 5 years later, that future 
battlefield is here.
    Breakthroughs in AI research and development are 
transforming the military's capabilities and are reshaping the 
character of warfare across all warfighting domains.
    The adoption of AI technologies in the cyber domain has 
been particularly transformative, as intelligent systems are 
empowering department personnel to analyze network patterns 
across thousands of data points in real time and expand their 
situational awareness on the digital battlefield.
    Through increased visibility into network assets, the 
military cyber operators are able to identify anomalies, detect 
threats, patch vulnerabilities, and mitigate cyber-attacks 
across the information enterprise more efficiently.
    AI tools are also being leveraged to prioritize risks, 
automate response actions, and extend DOD's ability to protect 
its digital assets beyond the capacity and reach of human 
security defenses.
    AI's ability to make inferences, strengthen access control 
measures, and streamline threat hunting processes are among the 
other features of this technology that are helping to enhance 
our defensive posture throughout the cyber environment.
    Despite the benefits of artificial intelligence, we cannot 
lose sight of how this powerful technology is changing the 
cyber battlefield for our adversaries as well.
    AI presents a new attack surface for foreign adversaries 
and cyber criminals to exploit. There is no doubt that 
malicious actors are seeking new ways to attack our critical 
infrastructure, steal sensitive information, and spread malware 
and other cyber threats through AI systems.
    Mitigating an adversarial AI will be key to winning the 
race for global AI leadership and securing the United States' 
technological dominance in this important field. Today's 
hearing is an opportunity to discuss the State of AI and 
machine learning applications to support cybersecurity.
    I look forward to witnesses discussing AI product and 
service offerings on the market today, and how they are 
protecting commercial organizations and digital systems from 
cyber threats.
    I also hope witnesses will discuss the regulatory 
landscape, guiding AI innovation both domestically and abroad, 
as well as how Congress can appropriately balance the demand 
for more AI research and innovation amid calls to pause its 
development due to transparency, accountability, and safety 
concerns.
    To defend against evolving threats in cyberspace, I would 
appreciate the witnesses discussing promising gains in AI 
research, identifiable limitations or gaps in the technology, 
and how the United States can outcompete large and sustained 
investments into AI applications by our foreign competitors.
    I would also appreciate witnesses discussing how the 
commercial sector is protecting its data repositories and 
algorithms to preserve the integrity of AI systems. I look 
forward to a discussion on all of these important matters. 
Thank you again to our witnesses for appearing today. Senator 
Manchin.
    Senator Manchin. Thank you, Senator Rounds. Now we are 
going to turn to our witnesses. First we have Dr. Jason Matheny 
for his opening statement.

      STATEMENT OF JASON G. MATHENY,  PRESIDENT AND CHIEF
       EXECUTIVE  OFFICER,  RAND  CORPORATION AND COMMIS-
       SIONER, NATIONAL SECURITY COMMISSION ON ARTIFICIAL
       INTELLIGENCE

    Dr. Matheny. Thank you, Chairman Manchin, Ranking Member 
Rounds, and Senator Schmitt. Thanks for the opportunity to 
testify today.
    I am the President and CEO of the RAND Corporation, a 
nonprofit, nonpartisan research organization. Before RAND, I 
served in the White House National Security Council and the 
Office of Science Technology Policy as a Commissioner on the 
National Security Commission on Artificial Intelligence.
    For the past 75 years, RAND has conducted research in 
support of U.S. National Security, and we currently manage four 
federally funded research and development centers for the 
Federal Government. Including one for the Secretary of Defense, 
one for the Secretary of the Air Force, one for the Secretary 
of the Army, and one for the Secretary of Homeland Security.
    Today, I am going to focus my comments on how DOD can best 
ensure that progress in AI benefits U.S. National Security 
instead of degrading it. Among a broad set of technologies, AI 
really stands out both for its rate of progress and for its 
scope of potential applications. It holds the potential to 
broadly transform entire industries, including ones that are 
critical to our future economic competitiveness and our 
National Security.
    Integrating AI into our National Security plans poses 
special challenges for several reasons. First, the technologies 
are driven by commercial entities that are frequently outside 
of our National Security frameworks.
    Second, the technologies are advancing quickly, typically 
outpacing policies and organizational reforms within 
Government. Assessments of the technologies require expertise 
that is concentrated in the private sector, and that has rarely 
been used for National Security.
    The technologies lack conventional intelligence signatures 
that distinguish benign from malicious use. Although the United 
States is currently the global leader in AI, this may change as 
China seeks to become the world's primary AI innovation center 
by 2030, an explicit goal of China's AI national strategy. In 
addition, both China and Russia are pursuing militarized AI 
technologies, intensifying the challenges that I just 
mentioned.
    In response, I will highlight a few sets of actions that 
DOD could take. The first is to ensure that DOD cybersecurity 
strategies and cyber red team activities track developments in 
AI that could affect cyber defense and cyber offense, such as 
the automated development of cyber weapons, or at least 
development that requires much shorter timelines.
    Second, to prevent bad actors from having access to 
advanced AI systems, first, ensure strong expert controls of 
leading-edge AI chips and chipmaking equipment, while licensing 
benign uses of chips that can be remotely throttled as needed.
    Second, use Defense Production Act authorities to require 
that companies report the development or distribution of large 
computing clusters, training runs, and trained models above a 
certain size. Third, including in DOD contracts with cloud 
computing providers a requirement that they employ know your 
customer screening for all customers before training large AI 
models.
    Fourth, including DOD contracts with AI developers know 
your customer screening as well as cybersecurity requirements 
to prevent the theft of large AI models, so that our 
competitors aren't stealing the technologies that we are 
actually building.
    Third, work with the intelligence community to 
significantly expand the collection and analysis of information 
on key foreign, public and private sector actors in adversary 
states, including those foreign public and private entities 
that are making headway in AI and in AI relevant computing, 
their infrastructure, their investments, their capabilities, 
their supply chains of tools, material, and especially talent.
    Strengthen DOD's institutional capacity for such activities 
by creating new partnerships and information sharing agreements 
among U.S. and allied government agencies, academic labs, and 
industrial firms, and by recruiting private sector AI experts 
to serve in the Government on short term or part time 
appointments.
    Fourth and last, invest in potential moonshots for AI 
security, including microelectronic controls that are embedded 
in AI chips to prevent the development of large AI models 
without security safeguards.
    Second, generalizable approaches to evaluate the security 
and safety of AI systems before they are deployed. I thank the 
Committee for the opportunity to testify and look forward to 
your questions.
    [The prepared statement of Dr. Jason Matheny follows:]
    
              Prepared Statement by Jason Matheny \1\ \2\
              
    Chairman Manchin, Ranking Member Rounds, and Members of the 
Committee: Good morning, and thank you for the opportunity to testify 
today. I'm the president and CEO of RAND, a nonprofit and nonpartisan 
research organization. Before RAND, I served in the White House 
National Security Council and Office of Science and Technology Policy, 
as a commissioner on the National Security Commission on Artificial 
Intelligence, as assistant director of national intelligence, and as 
director of the Intelligence Advanced Research Projects Activity, which 
develops advanced technologies for the U.S. intelligence community.
---------------------------------------------------------------------------
    \1\ The opinions and conclusions expressed in this testimony are 
the author's alone and should not be interpreted as representing those 
of the RAND Corporation or any of the sponsors of its research.
    \2\ The RAND Corporation is a research organization that develops 
solutions to public policy challenges to help make communities 
throughout the world safer and more secure, healthier and more 
prosperous. RAND is nonprofit, nonpartisan, and committed to the public 
interest. RAND's mission is enabled through its core values of quality 
and objectivity and its commitment to integrity and ethical behavior. 
RAND subjects its research publications to a robust and exacting 
quality-assurance process; avoids financial and other conflicts of 
interest through staff training, project screening, and a policy of 
mandatory disclosure; and pursues transparency through the open 
publication of research findings and recommendations, disclosure of the 
source of funding of published research, and policies to ensure 
intellectual independence. This testimony is not a research 
publication, but witnesses affiliated with RAND routinely draw on 
relevant research conducted in the organization.
---------------------------------------------------------------------------
    For the past 75 years, RAND has conducted research in support of 
U.S. national security, and we currently manage four federally funded 
research and development centers (FFRDCs) for the Federal Government: 
one for the Department of Homeland Security (DHS) and three for the 
Department of Defense (DOD). Today, I'll focus my comments on how DOD 
can best ensure that progress in artificial intelligence (AI) benefits 
U.S. national security instead of degrading it.
    Among a broad set of technologies, AI stands out for both its rate 
of progress and its scope of applications. AI holds the potential to 
broadly transform entire industries, including ones critical to our 
future economic competitiveness and our national security. Integrating 
AI into our national security plans poses special challenges for 
several reasons:

      The technologies are driven by commercial entities that 
are frequently outside our national security frameworks.

      The technologies are advancing quickly, typically 
outpacing policies and organizational reforms within government.

      Assessments of the technologies require expertise that is 
concentrated in the private sector and that has rarely been used for 
national security.

      The technologies lack conventional intelligence 
signatures that distinguish benign from malicious use.

    The United States is currently the global leader in AI; \3\ 
however, this may change as the People's Republic of China seeks to 
become the world's primary AI innovation center by 2030--an explicit 
goal of China's AI national strategy. \4\ In addition, both China and 
Russia are pursuing militarized AI technologies, \5\ intensifying the 
challenges I just outlined. In response, I will highlight four sets of 
actions that DOD could take:
---------------------------------------------------------------------------
    \3\ Although there are many ways to measure this, the Stanford 
Global AI Vibrancy Tool has consistently ranked the United States at 
the top. See Stanford University, ``Global AI Vibrance Tool: Who's 
Leading the Global AI Race?'' undated, https://aiindex.stanford.edu/
vibrancy/.
    \4\ Graham Webster, Rogier Creemers, Elsa Kania, and Paul Triolo, 
``Full Translation: China's `New Generation Artificial Intelligence 
Development Plan,' '' DigiChina, August 1, 2017, https://
digichina.stanford.edu/work/fulltranslation-chinas-new-generation-
artificial-intelligence-development-plan-2017/.
    \5\ Forrest E. Morgan, Benjamin Boudreaux, Andrew J. Lohn, Mark 
Ashby, Christian Curriden, Kelly Klima, and Derek Grossman, Military 
Applications of Artificial Intelligence: Ethical Concerns in an 
Uncertain World, RAND Corporation, RR-3139-AF, 2020, https://
www.rand.org/pubs/research--reports/RR3139-1.html.

    1.  Ensure that DOD cybersecurity strategies and cyber Red team 
activities track developments in AI that could affect cyber defense and 
---------------------------------------------------------------------------
cyber offense, such as the automated development of cyber weapons.

    2.  To prevent bad actors from having access to advanced AI 
systems, (1) ensure strong export controls of leading-edge AI chips and 
chip-making equipment while licensing benign uses of chips that can be 
remotely throttled if need be; (2) use Defense Production Act 
authorities to require companies to report the development or 
distribution of large AI computing clusters, training runs, and trained 
models (e.g. >1,000 AI chips, >1027 bit operations, and >100 billion 
parameters, respectively); (3) include in DOD contracts with cloud-
computing providers a requirement that they employ ``know your 
customer'' screening for all customers before training large AI models; 
and (4) include in DOD contracts with AI developers ``know your 
customer'' screening, as well as strong cybersecurity requirements to 
prevent the theft of large AI models.

    3.  Work with the intelligence community to significantly expand 
the collection and analysis of information on key foreign public-and 
private-sector actors in adversary states involved in AI, including 
assessments of key foreign public and private entities; their 
infrastructure, investments, and capabilities; and their supply chains 
of tools, material, and talent. Strengthen DOD's institutional capacity 
for such activities by (1) creating new partnerships and information-
sharing agreements among U.S. and allied government agencies, academic 
labs, and industrial firms and (2) recruiting private-sector AI experts 
to serve in the government on short-term or part-time appointments.

    4.  Invest in potential moon shots for AI security, including (1) 
microelectronic controls embedded in AI chips to prevent the 
development of large AI models without security safeguards and (2) 
generalizable approaches to evaluate the security and safety of AI 
systems before they are deployed.

    I thank the Committee for the opportunity to testify, and I look 
forward to your questions.

    Senator Manchin. Thank you, and Mr. Sankar.

        STATEMENT OF SHYAM SANKAR, CHIEF TECHNOLOGY
       OFFICER AND EXECUTIVE VICE PRESIDENT, PALANTIR

    Mr. Sankar. Chairman Manchin, Ranking Member Rounds, 
Senator Schmitt, thank you for the opportunity to discuss one 
of the most important subjects facing both the Department of 
Defense and our Nation at large, the effective and ethical 
application and integration of artificial intelligence with our 
armed services.
    This past February, I had the opportunity to visit Ukraine 
and witness the incredible speed with which the Ukrainian 
forces were able to field, learn, and win with AI on the 
battlefield. While the cycle of commercial innovation and 
Government adoption can take years in the United States, they 
were doing it in days in Ukraine.
    So really, the future has already arrived, it is just not 
evenly distributed. In that future, AI rewrites our roadmaps. 
It changes everything. We can either choose to accept that 
disruption and drive that change, or we can get disrupted by 
defending against it. Because the future is already here, we 
need to act with speed and conviction. If I can impart one 
message today, is that we are facing a moment in which existing 
roadmaps and systems are insufficient.
    We must completely rethink what we are building and how we 
are building it. Software and AI will shape everything, even 
toasters, but most certainly tanks. To succeed, we need to cut 
through the existing ways we organize and procure weapons 
systems and begin with software and AI first.
    This will be disruptive and emotional. Many incumbents in 
Government will be affected and they will feel threatened and 
dislocated. Many careers that have been built on mature 
technologies, weapons systems and platforms will also be 
affected. Fortunately, with the right leadership, our country 
is amongst the few that can turn on a dime and do so at scale. 
Because the alternative should be unthinkable.
    We must do the right thing, the hard thing here. As we 
begin this journey, I would like to offer the Subcommittee the 
following recommendations. First, the only way to overcome the 
intense emotional barriers to this wholesale reinvention is to 
adopt and embrace a field to learn to win model.
    We should field AI to mission users and operational 
workflows at the earliest possible moment, and then 
continuously improve these models through iteration with 
operators in the daily deterrence of our enemies and the 
defense of the Nation. This is the technological equivalent of 
throwing ourselves off the deep end.
    In the case of AI adoption, it is the only way to learn how 
to swim and win in this critical race. Second, the only way the 
Department of Defense will be able to employ world class AI 
with field to learn to win methods is if it overcomes the 
current market failures. An entire industry of commercial 
providers stands ready to support the defense community, but 
they must often stand idle while the Government insists on 
starting from scratch.
    America's greatest advantage over its adversaries is its 
software and its culture of innovation. Even our allies are 
envious of American technology companies and the prosperity 
that they have brought to our Nation. But America cannot 
exercise its software advantage unless those who are most adept 
at providing are able to bring their expertise and innovation 
to bear on these issues of national importance.
    For example, if there was a need to use any of the cutting-
edge large language models on a secret or top-secret network, 
today we cannot. This is a massive market failure. With a mere 
10th of a percent of the Department's budget, we could bring 
cutting edge commercial innovation to our warfighters.
    Today, I can give AVUS [Augmented Visualization of 
Underground Services] and AIG [Artificial Intelligence Group] 
more advanced AI than I can bring the Army and the Air Force. 
If we want to effectively deter those that threaten U.S. 
interests, we must spend at least 5 percent of our budget on 
capabilities that will terrify our adversaries. In the late 
1960s, 95 percent of all integrated circuits were sold to the 
U.S. Government.
    The Government was the first and largest customer, and it 
benefited directly from American innovation and ingenuity. The 
U.S. should aspire to recreate this dynamic with AI. Finally, 
these recommendations will only be successful if the United 
States continues to lead in building a regulatory and ethical 
framework for the use of responsible AI in the defense context.
    We cannot cede this leadership to the illiberal value 
structures of our adversaries. Our allies are certainly 
watching. This is not an exercise for academics. It is about 
addressing directly real-world problems in real time.
    Today we are at an inflection point. AI will define the 
success of every commercial and Government organization. Its 
development will define the prosperity of our Nation, and its 
adoption in the department will defend our country. I thank 
you, and I look forward to your questions.
    [The prepared statement of Mr. Shyam Sankar follows:]

                   Prepared Statement by Shyam Sankar
                              
                              introduction
                              
    Chairman Manchin, Ranking Member Rounds, distinguished members of 
the subcommittee, thank you for the opportunity to discuss one of the 
most important subjects facing the U.S. Department of Defense and our 
Nation: the effective and ethical deployment of artificial intelligence 
(AI) capabilities, including the large language models (LLMs) that have 
recently captured our collective attention, across the armed services 
and intelligence communities.
    In February, I had the opportunity to visit Ukraine and witness the 
future of warfare.
    By skillfully developing, integrating, and deploying AI-powered 
software on the battlefield, the Ukrainians have managed to effectively 
resist an adversary that by any conventional measure has a decisive 
advantage.
    In addition to the bravery and ingenuity of Ukraine's warfighters, 
I witnessed the incredible speed with which the Ukrainian defense 
forces were able to adopt, field, and scale new technological 
innovations.
    While the traditional cycle of commercial innovation and government 
adoption for a novel technology can take years in the United States, 
the drive and focus of the leadership in Kyiv has significantly 
accelerated the country's process for procuring and deploying new 
software on the battlefield, trimming adoption timelines from years and 
months to weeks and days.
    It is clear that the future of warfare is upon us. The war in 
Ukraine has now provided critical lessons for improving the speed with 
which the U.S. Government is able to adopt and deploy new technology at 
the pace required by the warfighter.
    As a result, I welcome the opportunity to provide my perspective, 
working for a company whose software is on the front lines of the 
digital transformation of warfare, on both the benefits and risks of 
this novel and emerging set of AI capabilities, for the Department of 
Defense, as well as to provide recommendations regarding the ways in 
which the U.S. military might most effectively harness the power of 
these advanced technologies while also mitigating their risks.
                    
                    the importance of ai and defense
                    
    When appropriately used, AI has the capability to provide military 
leaders--at the strategic, operational, and tactical levels--with the 
ability to make decisions at greater speed and with greater confidence.
    These technologies systematically augment the efficiency of 
warfighters on the ground. There is no question that such technologies 
can help provide the advantage that the United States requires in order 
to deter its adversaries, and when necessary, to defeat them on the 
battlefield.
    We are still only at the beginning of understanding the potential 
of these technologies for the military. The United States cannot run 
the risk of falling behind as a leader in this area, particularly to 
our adversaries, including China.
    It is vital that we identify critical gaps in the Department of 
Defense's ability to acquire and field novel forms of AI, as well as 
aggressively expand the investments that are required to maintain 
America's technological edge.
                  
                  the current state of ai and defense
                  
    The successful acquisition and application of AI capabilities 
raises significant technical issues, including the need to (1) track 
the provenance and lineage of data and models, (2) control for changes 
in versions of models as they are tested and upgraded, (3) provide a 
means of structuring data so that it reflects objects in the physical 
world and the relationships between them, (4) perform continuous 
testing and evaluation to bolster models against the inevitable impacts 
of entropy and brittleness, and (5) create a persistent and reliable 
audit trail to enable accountability and transparency.
    We have learned from our own experience working with the Department 
of Defense that even though novel forms of AI are now actively deployed 
across the U.S. military, the foundational digital infrastructure 
required to support the sustained development of AI efforts across the 
armed services remains in its earliest stages.
    Despite considerable progress, advances in the use of AI by the 
Department of Defense remain uneven across offices and branches of the 
military. At present, the vast majority of operational and strategic 
decisions are made based on a scattered assemblage of PowerPoint 
presentations, emails, and documents. Even the most basic retrospective 
analyses--to take stock of past decisions and outcomes, and to build on 
prior experience and knowledge--require analysts and warfighters to 
engage in tedious and inefficient workflows and processes.
    This uneven landscape of technical advances alongside a structural 
reliance on legacy systems suggests that many areas of the Department 
of Defense still require a significant overhaul of their foundational 
data infrastructure before they can leverage more advanced AI 
capabilities.
    The Army Vantage program is one example of the ways in which 
investing in modernization and digitalization efforts can lead to 
greater success and technological adoption in the long run.
    The foundation of the Army Vantage program is a digital platform 
where data from across the U.S. Army is integrated and analyzed in a 
single pane of glass to help advance Army readiness, resilience, and 
operational decisionmaking. This open and interoperable platform 
provides a software layer on top of legacy Army and commercial off-the-
shelf (COTS) systems and is available to individuals across all 
echelons of the Army, subject to their security approvals.
    To date, this investment has allowed the U.S. Army to field an AI-
enabled platform that supports tens of thousands of users and has 
demonstrated critical value to the Army by delivering operational 
capabilities.
    The platform has saved the Army billions of dollars by leveraging 
algorithms to prioritize unliquidated obligation reviews, improved the 
health of the force by integrating critical risk data points to create 
the Commander's Risk Reduction Toolkit, which helps prevent self-harm 
among our troops, and provided in-theater decision support to 
commanders responding to crises in the Middle East and Europe.
    We believe that Army Vantage provides a prime example of how the 
Department of Defense can pursue modernization that will establish a 
foundation for the use of next generation AI across the U.S. military 
in the coming years.
    Given the pace with which America's near-peer competitors as well 
as other adversaries are advancing their own AI capabilities, we cannot 
delay the process of investing in our own armed services.
    Time is not on our side. If the United States hopes to stay ahead 
of its adversaries, it must move beyond traditional contracting 
approaches that were built for hardware acquisition and accelerate the 
adoption of more agile acquisition methods that have been designed for 
the procurement of software.
                            
                            recommendations
                            
Investment in Foundational Platforms & Infrastructure
    First, to field AI that is both effective and sustainable in the 
long run, the Department of Defense must invest in foundational digital 
platforms and data infrastructure.
    It is a mistake to think of AI capabilities as plug-and-play tools 
that simply work out of the box. The reality is more complicated. AI 
must be embedded within the context of an organization's broader 
technical infrastructure, which is required to make AI truly 
operational, as opposed to decorative or performative.
    In practice, this means adopting digital infrastructure that 
supports the full life cycle of data and model management, providing 
tools for continuous testing and evaluation. It also means providing 
commercial capabilities for procuring, managing, curating, and securing 
large scale--and often highly sensitive--data streams that drive AI 
development and use.
    There have been some significant efforts to invest in this space, 
most notably the Deputy Secretary of Defense's AI and Data Accelerator 
(ADA) initiative and the subsequent creation of the Chief Digital and 
Artificial Intelligence Office. Robust investments in this office and 
in the Department of Defense's Chief Information Office toward scaling 
existing, commercially enabled offerings, are critical to building the 
foundation of our future artificial intelligence capabilities.

Expansion of ``Field-to-Learn'' Programs
    Second, we must continue to expand ``field-to-learn'' programs for 
AI.
    Project Maven is the Department of Defense's most successful AI 
pathfinder program, in large part because of its iterative ``field-to-
learn'' and ``test-fix-test'' approaches. AI is fielded to end-users 
and operators via workflows relevant to their missions, models are 
improved through iteration with operators in the field, and then the 
refined system is extended to larger groups over time.
    This approach represents what technology supporting rapid 
experimentation looks like, and fortunately, Project Maven has 
developed an extensible infrastructure that can support an increasing 
set of operational AI capabilities across a number and growing set of 
domains.
    Through ADA, AI isoperationally deployed across many Combatant 
Commands (COCOMs), including within CENTCOM, where experience in actual 
conflicts is the bedrock standard of the ``field-to-learn'' 
methodology. Future opportunities for ``field-to-learn'' AI programs 
include the Optionally Manned Fighting Vehicle (OMFV) program, whose 
focus is on building a vehicle based on an AI platform, with everything 
from autonomous and partially autonomous maneuvering capabilities, as 
well as improved targeting and drone control.

Adoption of Large Language Models (LLMs)
    We believe that the Department of Defense should be aggressively 
experimenting, while adhering to responsible AI practices, to 
understand potential use cases and limitations of LLMs.
    Early use cases for natural language processing capabilities and 
LLMs that are already proving valuable in the commercial world include 
code assist tools, using language models to create operational 
applications for rapid prototyping and experimentation, and improved 
semantic search for documents to assist subject matter experts in 
finding the information they need. Future applications should include 
use in wargaming, creative assistants for operational planning, and 
faster battle damage assessments.
    Many LLM use cases are going to require classified models trained 
on Department of Defense data and problem sets. The U.S. military 
should build off of models developed in the commercial world and 
trained on Department of Defense and proprietary data, to power future 
military systems. Joint All Domain Command and Control (JADC2) 
development provides an opportunity to test new warfighting concepts 
for decisionmaking that rely on LLMs, but these models should be 
available for broad integration in other programs so that our most 
important problems benefit from our most advanced AI technology.

Lower Barriers for Commercial Technical Innovation
    Third, in order to leverage the value of technology in support 
national defense, the U.S. Congress and the Department of Defense 
should lower barriers to entry for America's most innovative firms.
    I believe that America's greatest advantage over its adversaries is 
the power and sophistication of the software that this country 
produces. But America cannot exercise its software advantage if those 
who are most adept in providing it are unable to participate in the 
defense innovation ecosystem.
    In order for the Department of Defense should grow more comfortable 
using software-specific acquisition authorities and Other Transaction 
Authorities (OTAs), it must simplify and accelerate the Authority to 
Operate (ATO) process.
    Too often defense industry giants and incumbents are awarded 
contracts and tasked with projects that they will never be able to 
complete.
    The Government needs to hold them accountable for their lack of 
productivity and results. One way to do this is to invite more 
competition from those non-traditional firms and startups that are 
ready and willing to help the United States advance its AI 
capabilities.
    The existing congressionally mandated Commission on Planning, 
Programming, Budgeting, and Execution Reform is a welcome endeavor.

Advancing Responsible and Ethical AI
    Fourth, the United States must take the lead on building a 
regulatory and ethical framework for the responsible use of AI in the 
defense context. If we do not set the tone and the rules, our 
adversaries will.
    Our recommendations for guiding principles, both in and out of the 
defense context, include:

      AI technologies need to be understood in their 
operational and systems context. As a software company, we believe that 
it is critical to develop software and systems that are informed by 
operational realities and reflect the constraints and limitations--
technological, procedural, and normative--that warfighters face in the 
field.

      AI capabilities should be oriented toward addressing 
human concerns and outcomes. The best technology solutions must augment 
rather than replace human intelligence.

      Ethical AI goes hand-in-hand with effective AI. It is not 
only an ethical imperative that AI innovation should be compatible with 
fundamental rights concerns, as well as domestic and international law 
(including international humanitarian law), but it is also the case 
that the most effective AI technologies are often built with principles 
of responsible operation and use embedded by design.

    Effective AI should also enable responsible warfighting that 
reinforces principles of national law, military doctrine, and 
international humanitarian law to help ensure that our defense forces 
never lose sight of the values we are fighting to preserve.

Leverage Existing Commercial Technology
    Finally, we believe that the Department of Defense must recognize 
that while there are some cases where it makes sense to build in-house, 
it is more prudent to buy AI capabilities from the commercial sector.
    The bleeding edge of AI development is happening in America's 
robust marketplace of commercial firms. Instead of the government 
insisting on building in-house (which stands in direct competition with 
American businesses), or itself trying to serve as a systems 
integrator, the choice to buy commercial solutions will lead to a 
quicker, cheaper, sustainable, and more effective advancement of AI 
capabilities for America's warfighters.
    Furthermore, the acquisition of commercially available AI 
capabilities will allow the Department of Defense to progress to the 
``field-to-learn'' stage of AI development from the start, instead of 
waiting years to develop certain capabilities in-house.
    I would add a final call to arms, not to the U.S. Government, but 
to American technology companies in Silicon Valley and elsewhere.
    We, the technology industry, have a debt to the American people and 
the free and liberal society that supports us. As a result, we owe it 
to consumers not to build products that are extractive and predatory. 
We have an obligation to build products that strengthen individuals and 
society at large, and we must be part of a system that builds a strong 
economy for the American worker and democratic principles.
                               
                               conclusion
                               
    In the late 1930's, European refugees warned of Germany's advances 
in developing atomic weapons, and with the support of individuals such 
as Robert Oppenheimer and Albert Einstein, the Manhattan Project was 
born.
    When the Sputnik satellite was launched in 1957, just decades 
later, America put a man on the moon. When a highly contagious virus 
ravaged the world and killed tens of thousands of people each day, 
America's best scientists created effective vaccines and partnered with 
the military to deliver them in record time, through Operation Warp 
Speed.
    We are now at another inflection point.
    Without fully embracing the power of advanced software and AI, the 
United States runs a real risk of falling behind its adversaries. AI-
enabled warfighting is not about large weapons systems that take 
decades and billions of dollars to develop, but rather about having the 
systems in place--both institutionally and technologically--to support 
rapid, iterative experimentation and deployment.
    The creation of such a system, and especially one that is ethical 
and reliable, will require a concerted and joint public-private effort. 
It is for this reason that I am honored to testify before this 
subcommittee today, and I look forward to working with colleagues in 
the U.S. Government as well as industry to bring the best technology 
possible to members of our armed services.
    We must invest, build, and scale this new technology as soon as 
possible.
    Thank you, and I look forward to your questions.

    Senator Manchin. Dr. Lospinoso.

          STATEMENT OF JOSH LOSPINOSO, CO-FOUNDER AND CHIEF
                     EXECUTIVE OFFICER, SHIFT5

    Dr. Lospinoso. Thank you, Chairman. Chairman Manchin, 
Ranking Member Rounds, member of the subcommittee, it is my 
honor to have the opportunity to testify before you today on 
the State of artificial intelligence and machine learning 
applications to improve Department of Defense operations.
    While AI research is by now many decades old, the field has 
accelerated at a blistering pace. From ChatGPT to self-driving 
cars, recent AI powered technologies have again captured the 
public imagination. I commend the Subcommittee for treating 
this accelerating development with renewed urgency.
    In 2021, the National Security Commission on Artificial 
Intelligence (NSCAI) message was clear. If trends continue, 
China will surpass us within a decade. This Subcommittee has 
asked whether we have made progress toward the NSCAI's 
recommendations, what gaps exist, and where policy is impeded.
    In this testimony, I want to bring attention to two facts 
about today's military weapons systems, AI and cybersecurity. 
Fact number 1, most major weapons systems are not AI ready. As 
data scientists are quick to say, garbage in makes garbage out.
    Data allows us to investigate, train, monitor novel AI 
enabled technologies, but without high quality data, we cannot 
build effective AI systems. Unfortunately, today the DOD 
struggles to liberate even the simplest data streams from our 
weapon systems. These machines are talking, but the DOD is 
unable to hear them.
    We cannot employ AI enabled technologies without great 
data. This requires taking seriously the difficult, unglamorous 
work of laying strong foundations, clean, labeled, enriched, 
comprehensive data, sound, simple, decentralized, scalable data 
architectures, and straightforward, unambiguous metrics for 
measuring AI empowered systems' effectiveness.
    America's weapon systems are simply not AI ready. While the 
Department of Defense's intention is to integrate and employ AI 
capabilities across the Joint Force, the weapons systems 
themselves are incapable of hosting them.
    We must implement solid, scalable edge computing. We need 
to enable full tech data collection at the edge. We must solve 
the operational challenge of transferring terabytes of data 
from the field to the cloud, making them available to the AI 
enabled technologies they will fuel.
    Fact number 2, the DOD cannot solve weapons systems 
cybersecurity without artificial intelligence. Without AI, the 
DOD will never be able to keep these weapon systems cyber 
secure. It has made little progress, unfortunately, addressing 
the perils identified in the Government Accountability Office's 
2018 report on weapons systems' cybersecurity.
    The DOD spends trillions of dollars fielding weapon 
systems. Each one contains dozens, sometimes hundreds, of 
special purpose computers that perform every conceivable 
function on these platforms, from the control surfaces on an 
aircraft to the data radios on submarines. These systems are 
profoundly digital.
    Unlike modern IT systems, built with zero trust 
architectures, these weapon systems were built with blind faith 
architectures. The DOD needs AI powered capabilities to detect 
anomalies and prevent cybersecurity intrusions on these 
platforms.
    The NSCAI is right, if we don't act now, China's goal of 
surpassing us will be realized. Major weapon system programs, 
both old and new, need funding and requirements to make them AI 
ready.
    The good news is that between industry, academia, and 
Government, solutions to these challenges exist today. I look 
forward to discussing these matters with you and continuing to 
support the warfighter. Thank you, Chairman Manchin, Ranking 
Member Rounds.
    [The prepared statement of Dr. Lospinoso follows:]

                Prepared Statement by Dr. Josh Lospinoso
                
    Chairman Manchin, Ranking Member Rounds, Members of the 
Subcommittee, it is my honor to have the opportunity to testify before 
you today on the State of Artificial Intelligence and Machine Learning 
applications to improve Department of Defense operations.
    While AI research is well over 60 years old, development seems to 
be accelerating at a dizzying pace. Recent AI-powered technologies 
ranging from ChatGPT to self-driving cars have again captured the 
public imagination. The subcommittee is correct to treat this 
accelerating development with renewed urgency. Additionally, given the 
DOD's foundational role in artificial intelligence research, it's 
fitting that the National Security Commission on Artificial 
Intelligence has taken up the challenge of considering how the U.S. can 
continue taking a central role in AI, responsibly employ AI for 
national security and defense, and protect against AI threats.
    In this testimony, I want to bring to the subcommittee's attention 
two key facts about our weapon systems, AI, and cybersecurity:

    1.  Most major weapon systems are not AI ready

    2.  We cannot solve weapon system cybersecurity without AI

    Today, the Department of Defense lacks the ability to collect, 
translate, enrich, store, and process weapon system data. Without these 
basic, fundamental elements, our major weapon systems cannot benefit 
from AI-powered technologies including cybersecurity, maintenance, and 
operational applications. They are and will continue to be stuck in the 
last century, and there is a real risk that our adversaries will 
leapfrog over us as a result.
    The NSCAI made two important claims: (a) AI will exceed humans in a 
wide range of tasks, and that this will have world-altering impacts; 
(b) that AI wielded by our adversaries, especially China, will 
challenge America's technological predominance.
    I wish I could disagree, but I wholeheartedly share the NSCAI's 
convictions. I would like to take the opportunity to emphasize and 
sharpen several key recommendations within the NSCAI report: manage 
risks associated with AI-enabled and autonomous weapons; establish 
justified confidence in AI systems; and present a democratic model of 
AI use.

Most major weapon systems are not AI ready
    As data scientists are quick to say, ``garbage in makes garbage 
out.'' Data allows us to investigate, train, and monitor novel AI-
enabled techniques. Without high-quality data, we cannot build 
effective AI systems.
    If military weapon systems are going to benefit from the rapid 
expansion of AI-power technology, Congress must levy requirements for 
every major weapon system that they collect, translate, enrich, and 
disseminate their data. These systems are designed with nervous systems 
that carry tremendous volumes of extremely valuable data. We must 
extract this data and make it broadly available across the Department 
to achieve the four top priorities outlined by the 2022 National 
Defense Strategy. Congress must also fund the requirements. This 
funding should go toward procuring readily available technology 
solutions across industry, not to merely study the problem, but to 
address the problem. This is how we will deter or win the next major 
conflict. We cannot wait a decade.
    AI-powered technology is only as good as the data used to train it. 
Getting this wrong on weapon systems could put the warfighter at risk 
or result in mission failure. Today, the Department of Defense does not 
have anywhere near sufficient access to weapon system data. We do not--
and in some cases due to contractual obligations, the Department 
cannot--extract this data that feeds and enables the AI capabilities we 
will need to maintain our competitive edge. The Department of Defense 
must be empowered to holistically collect, assess, and manage data 
particular to those capabilities responsible for the defense of the 
Homeland. Ensuring that the Department not just has access to weapon 
systems data but can own that data will be a paradigm shift in the way 
the Department of Defense can truly assess total formation readiness. 
Enabled by AI technologies, commanders/operators/maintainers must have 
unparalleled visibility into not just the platforms but the fleets of 
weapon systems--without which, JADC2 cannot be achieved.
    The DOD and the U.S. have played a formative role in advancing the 
field of AI. The NSCAI's report provides a roadmap for how the U.S. can 
retain AI preeminence, how the DOD must prepare for AI's potential 
impact on modern warfare, and how the world order could easily change 
if we misstep.
    Each of these recommendations require the difficult, unglamorous 
work of laying strong foundations: clean, labeled, enriched, 
comprehensive data; sound, simple, decentralized, scalable data 
architectures; and straightforward, unambiguous metrics for measuring 
AI-empowered systems' effectiveness. Ask data scientists where they 
spend most of their time, and you'll hear that it's 90 percent data 
engineering, data cleaning, and data shaping. Obtaining and preparing 
the right data for a particular AI application is, by a wide margin, 
the least appreciated and resourced part of the process. Without 
robust, pristine, well-curated data sets, we must significantly reduce 
our expectations about the efficacy of AI applications built without 
this foundation.
    I believe that three of the reports key recommendations--managing 
risks associated with AI-enabled weapons, establishing justified 
confidence in AI systems, and presenting a democratic model of AI use--
require the unglamorous but essential work of laying strong 
foundations. This involves clean, labeled, enriched, and comprehensive 
data, sound and scalable data architectures, and straightforward and 
unambiguous metrics for measuring AI system effectiveness. This 
foundational work is crucial in ensuring weapon system cybersecurity, 
and the proposed solutions need to be implemented through funding and 
requirements. Ultimately, the successful deployment of AI in national 
security and defense requires a collaborative effort among government, 
academia, and industry to lay the groundwork and build on the progress 
made so far.

We cannot address weapon system cybersecurity without AI
    As evidenced by the NCSAI report's length--over 750 pages--
defense's role in AI is an enormous topic. I'd like to focus your 
attention on one specific and extremely consequential AI-enabled 
technology of great importance to the warfighter: weapon system 
cybersecurity. The Fiscal Year 2016 NDAA Section 1647 required DOD to 
complete cybersecurity vulnerability assessments for individual weapon 
systems. My colleagues and I spent considerable time studying these 
systems, and what we found unsettled us deeply. By comparison to weapon 
systems, IT systems like cell phones seem like impregnable fortresses. 
The Government Accountability Office arrived at the same conclusions, 
and in 2018 published its sobering ``Weapon Systems Cybersecurity'' 
report.
    The DOD spends trillions of dollars fielding major weapon systems. 
Each one contains dozens--sometimes hundreds--of special purpose 
computers that perform every conceivable function. From the control 
surfaces on an aircraft to data radios on submarines, these systems are 
highly digitized. This digitization happened gradually over the latter 
half of the 20th century. Modern weapon systems are both profoundly 
digitized and highly interconnected. Many have radio frequency 
connections including to satellites and other weapon systems. Virtually 
all systems interconnect with IT systems such as maintenance laptops 
for routine upkeep. Some older systems were designed with the 
assumption that they would remain air gapped once they rolled off the 
assembly line. This assumption simply no longer holds in the modern 
military.
    It is deeply unfortunate that we never architected cybersecurity 
requirements into these systems, their communications, or their 
interoperability layers. The result is that we have trillions of 
dollars of major weapon systems that are profoundly vulnerable to 
cyberattack. It is conceivable that the next major military conflict 
will be decided with the click of a mouse. Imagine the effect of a 
cyberattack against a satellite constellation, prepositioned defense 
stock, or a fleet of fighter aircraft positioned to response to crisis. 
The cyberattack doesn't have to be dramatic to be devastating; the 
enemy just needs to ensure that those fighters cannot get off the 
ground to respond to an attack.
    Today, the IT cybersecurity community aspires to concepts such as 
``zero trust,'' where all system interactions are suspect and should 
not be trusted. Unfortunately, major weapon systems are several decades 
behind. They are complete trust systems. Regrettably, we cannot 
redesign these systems with secure electronics and protocols because of 
the long timelines and astounding costs involved. All is not lost, 
however. We can draw strength from the tremendous progress that the 
cybersecurity community has made in securing IT systems. We do not need 
to reinvent the wheel. We can learn from thirty years of best practices 
to accelerate weapon system cybersecurity. Well known concepts like 
defense in depth, patch management, access controls, and incident 
planning are highly applicable to weapon system cybersecurity. This is 
far too big a job for one organization to solve. It will take a 
village--including government, academia, and industry--to get there. 
Each best practice reinforces the other.
    In the world of major weapon systems where there is virtually no 
cybersecurity aside from obscurity, observability is the first step. 
Not only does it help you to design the other control measures, but it 
ensures that you are keeping up to date with the latest threats. To 
observe weapon systems--or any digital system for that matter--you need 
data collection. Weapon systems have data networks that connect all 
their electronic components. You can think of them like nervous 
systems. These nervous systems generate enormous amounts of extremely 
valuable data every second. Unfortunately, in 2018 no weapon systems 
collected all--or anywhere near all--of this data. These platforms were 
talking, but no one was listening.
    Industry has tackled the weapon system cybersecurity observability 
problem by building the foundational tools first. The military now has 
readily available, certified hardware capable of real-time edge 
computing and software capable full-take data capture from every bus. 
Frameworks exist for normalizing, translating, and enriching the data 
into a common format. Technologies and processes for liberating this 
data from the weapon systems can be fed into cloud environments. This 
took years, but the military should be proud that it successfully 
completed its first full-fleet deployment last year and has already 
democratized many terabytes of critical data from that fleet. The 
services have begun many more initial deployments since.
    Armed with this foundation widely deployed across the DOD--
pristine, full, high-quality digital data streams from every weapon 
system--we would have the platform to build AI-enabled applications 
that can scale and integrate across platforms to support all domain 
operations. Intrusion prevention is a canonical example. In AI 
parlance, intrusion prevention is a ``classification problem.'' Given a 
stream of data, you must detect anomalous/malicious traffic from 
normal/benign traffic. There are several algorithms that are very good 
at detecting many kinds of cyberattacks against weapon systems. No need 
to reinvent the wheel.
    But we're only able to unleash these algorithms once we build the 
data foundation.

We Are Out of Time
    In very short order, we must aggressively expand this foundational 
work across our major weapon systems. There is remarkable work on 
enterprise architectures to promote ready, decentralized, self-service 
access to wide ranges of data, algorithms, and applications. We must 
expand the scope of these foundational efforts to include the trillions 
of dollars of major weapon systems that the warfighter relies on in 
both combat and training missions.
    The extensive NSCAI report comprehensively addressed some very 
critical issues regarding the State of the AI ecosystem and produced an 
extensive series of key recommendations to change the paradigm of AI 
adoption. However, we do not have the luxury of time for drawn-out 
policy and budgetary cycles; if the U.S. does not take the lead on 
establishing and formalizing standards and responsible use of AI, our 
adversaries will.
    Recent legislative activity highlights the congressional commitment 
to addressing the issue, but we must be mindful of the speed in which 
we consider the role of AI in defense. While our adversaries are 
developing and employing AI technologies at speed of requirement, we 
must be faster--we must consider how to deliver at the speed of action. 
As data continues to flow off weapon systems and associated sensors, 
the Department must consider the resource limitations it faces with 
sensemaking; there will never be enough DOD civilians or servicemembers 
to manage the biblical deluge of data--AI models must be employed to 
ensure a postured, ready, and resilient formation where the unnecessary 
risk of known vulnerabilities is addressed with smart models that can 
distinguish between anomalous alerts as maintenance issues or 
cyberattack.
    While the Department defends their fiscal year 2024 budget 
requests, Congress must ask--are these budgets representative of change 
necessary to truly develop and posture a ready force? Does the 
Department consider readiness in terms of threats borne of the 21st 
century, or are they still articulating ability to fight through 
outdated, outmoded practices of failed history? Are the right steps 
being taken to buy down unnecessary risk based upon known 
vulnerabilities, or does emphasis remain upon those capabilities which 
might be useful today but useless tomorrow?
    America's preeminence as a military superpower derives from several 
key inputs including the world's best trained and highest quality 
people, its robust budget, its global reach, and our tremendous allies 
and partners. But its technological superiority, especially manifested 
in our major weapon systems, is where we derive the greatest advantage. 
If, as the NSCAI's report warns, the United States doesn't retain its 
AI dominance and empower its major weapon systems with AI-enabled 
technology, we face the real prospect that an adversary could surpass 
us.
    We must act now to prepare our major weapon systems for the era of 
AI. We are decades behind and there's not a moment to lose.

    Senator Manchin. Thank you, sir. Now, we are going to start 
with our questions, and I will begin. I have been thinking 
about this because when you look at it, the internet was 
founded in, I think, 1983.
    A Section 230 came into play in 1996, I believe. We have 
been discussing that ever since. Should we have done more? 
Should we have put--how are we going to put back the guardrails 
on it? Has it gone too far? Who is accountable? Who is 
responsible?
    On and on and on. Now that we are coming into the age of 
the AI, give me your--each one of you, give me your thoughts on 
as this comes into the realm, if you will, and we are going to 
be so dependent on it and using it for so many purposes.
    What could we do, learning from what we didn't do when the 
internet came into play? Dr. Matheny.
    Dr. Matheny. Thanks, Senator Manchin. I think that the 
application of some of these large models to developing very 
capable cyber weapons, very capable biological weapons, 
disinformation campaigns at scale pose grave risks.
    I think one of the threats that I see is that the very 
technology that we develop in the United States for benign use 
can be stolen and misused by others. I think we need a 
licensing regime, a governance system of guardrails around the 
models that are being built, the amount of compute that is 
being used for those models, the trained models that in some 
cases are now being open sourced so that they can be misused by 
others. I think we need to prevent that.
    I think we are going to need a regulatory approach that 
allows the Government to say tools above a certain size with a 
certain level of capability can't be freely shared around the 
world, including to our competitors, and need to have certain 
guarantees of security before they are deployed.
    Senator Manchin. You know, my biggest fear is that what 
little bit I know about AI, but knowing the capability of AI, 
having people say something they never said, having the image 
of a person doing something they never did, having a country 
declaring war that never happened.
    All these things--I mean, the stakes are so high in what we 
are doing. But if we can learn from our mistakes and put those 
guardrails in now, and you all would know better of how you 
intend your program to be used or your platform to be used to 
tell us what shouldn't be there to protect not just this, to 
protect your market, if you will, that protect basically the 
use of this and the intentions of what it is for.
    I think we need to do that and think about this deeply 
before we go further. Dr. Sankar--Mr. Sankar.
    Mr. Sankar. Absolutely. I think a lot of what you are 
getting at is we kind of implicitly all believe or explicitly 
believe that AI is valuable, but how do you make it viable? It 
is not viable without trust.
    That trust requires a real foundation where you understand 
the data that went into it. You understand why, to the extent 
you are not getting behaviors you expected, you are getting 
those behaviors.
    So, I think a big part of this approach is, you know, I 
would welcome a regulatory approach to this, is also realizing 
that there is a huge and outsized role for the Department to 
lead by going through it.
    It is only by red teaming, adopting and red teaming trying 
to break it, that we are going to really understand and develop 
the appropriate rigorous testing and evaluation framework, I 
would say.
    The analogy to cybersecurity is great here. You can't just 
have a blue team effort to protect yourself. You learn as much 
or more from red teaming it. That defines how you defend 
yourself going forward.
    I think these are actually two sides of the same coin, and 
we should be practicing them together and aggressively.
    Senator Manchin. Dr. Lospinoso.
    Dr. Lospinoso. Thank you, Chairman. I totally agree, and I 
think that the analogy to the internet is really apt. If we 
have learned anything in the past several decades of technology 
innovation, we see a focus on functionality first, in the case 
of the internet, sharing information--in the case of AI, 
solving a broad range of applications.
    Then we think about security, and I think we can't make 
that mistake again. Today, we spend hundreds of billions of 
dollars on cybersecurity trying to shore up the problems that 
we had in the past that we didn't think about.
    We have an opportunity now to think about the security of 
these AI models as well. There are two frontiers that I imagine 
we will probably get into later in the discussion. But to 
preview, you know, data poisoning is a huge problem.
    So, the idea that the data you are using to train these 
models can be altered by nefarious actor to create profound 
challenges with the AI algorithms. The second is adversarial 
attacks. You may have seen some of these sensational videos of 
putting a few dots on a stop sign and to a self-driving car it 
looks like a green light.
    Or fingerprint readers with a couple of modifications 
spoofing, you know, authentication. These are real problems, 
and we need to think clearly about shoring up those security 
vulnerabilities in our AI algorithms before we deploy these 
broadly and have to clean the mess up afterwards.
    Senator Manchin. Well, let me just say thanks to all of 
you. Would it be possible I mean, I think on behalf of Senator 
Rounds, myself, and our Subcommittee here, to ask you all to as 
quickly as possible, 30, 60 days, put a little team together, 
give us some thoughts on what you think can be and should be 
done.
    We can share them with the Committee Members here to see if 
we can launch, basically start looking at how we would write 
legislation not to repeat the mistakes of the past. If you 
could do that, we would appreciate it. Senator Rounds.
    Senator Rounds. Thank you, Mr. Chairman, and look, I really 
want to thank our witnesses here today for some very good 
opening statements.
    You actually answered a couple of questions that I had in 
advance just in the opening statements themselves with regard 
to the effects on National Security and our competitiveness. I 
want to get into something which is current in the news today, 
and that is there a group of fairly well-respected AI experts 
and industry leaders recently signed a letter calling for a 
pause in AI development, citing a risk to society.
    I think the greater risk, and I am looking at this from an 
American, a U.S. security standpoint. I think the greater risk 
is taking a pause while our near-peer competitors leap ahead of 
us in this field. AI will be the determining factor in all 
future great power competition, and I don't believe that now is 
the time for the United States to take a break from developing 
our AI capabilities.
    My questions to all of you would be, number 1, is it even 
possible to expect that other competitors around the world 
would consider taking a break? What could be the impact if we 
were to try to slow down our AI development while Congress 
looks at policy issues and the rest of the world continues on, 
in particular, our near-peer competitors who seem to have a 
considerably less announced concern with regard to the ethics 
of this new technology?
    Dr. Matheny, I would like to start with you.
    Dr. Matheny. Thanks, Senator Rounds. I think it would be 
very difficult to broker an international agreement, to hit 
pause on AI development in a way that would actually be 
verifiable. I think that would be close to impossible.
    I think we are taking appropriate first steps to create a 
governance system in which we could at least delay China's 
access, for example, to very high-performance computing thanks 
to the October 2022 export controls on AI chips and the 
subsequent controls on semiconductor manufacturing equipment.
    But it is very difficult to say, internationally, we would 
be able to achieve some sort of pause in a way that is 
enforceable. It is also unclear how we would use that pause and 
whether we could use it effectively in a way that allows 
democracies to lead the norms and standards around AI and its 
implications for society.
    I would like to see democracies maintain the lead. I do 
think an important part of maintaining the lead, though, is to 
ensure that we have guardrails. That we are seen as the beacon 
for safety and security considerations.
    That will actually help to win as friends and allies around 
the world. Our democratic allies are looking to us for 
guidance, and I think we can be a first mover in some of the 
guardrails that are needed.
    Senator Rounds. Thank you. Mr. Sankar.
    Mr. Sankar. Absolutely. I think the pause is--what is going 
to be different in 5 months and 29 days, we need to really 
think about that, other than ceding the advantage to the 
adversary.
    I think the other part of it is, so there is the 
technological capability that we could become--every 2 days 
now, there is breakthroughs made that we didn't think was 
possible.
    So, the pace is breakneck. We are talking about generations 
of advances. But I do think due to Dr. Matheny's point, 
actually, perhaps the bigger consequence is the nature of the 
AI. China has already said that these generative models must 
display socialist characteristics.
    It must not enable the overthrow of the State. So, these 
sorts of constraints that are being baked into the extent that 
that becomes the standard AI for the world is highly 
problematic.
    I would double down on the idea that a democratic AI is 
crucial. Now that is--we will continue to build these 
guardrails around this, but I think ceding our nascent 
advantage here may not be wise.
    Senator Rounds. Dr. Lospinoso.
    Dr. Lospinoso. Yes, sir. I totally agree. I think that it 
is impracticable to try to implement some kind of pause. I 
think if we did that, our adversaries would continue 
development and we end up ceding or abdicating leadership on 
ethics and norms on these matters if we are not continuing to 
develop.
    That is not to mention the practical implications of us 
falling behind on, as Mr. Sankar mentioned, these applications 
that are incredibly important, cybersecurity, military 
applications.
    We lose in that competition and we enfeeble industry that 
is working at breakneck speed to try to keep us on top.
    Senator Rounds. I would just ask one, and I think this can 
be answered fairly quickly, and we will probably do a second 
round on it, but with regard to AI right now, isn't it true 
that there are literally dozens of countries around the world 
that have already implemented degrees of AI into their weapons 
systems that have already been deployed on the battlefield.
    I am thinking of the Nagorno-Karabakh war between Armenia 
and Azerbaijan in September 2020, where loitering munitions 
were used that with no human in the loop, literally determined 
their own weapons--their own weapons to use on which objects 
without a human ever ordering it.
    Dr. Lospinoso. Senator Rounds, that is exactly accurate. I 
mean, this is going to continue to develop. We are going to 
have autonomous weapons systems developed by other countries. 
If we are not continuing to invest in that research and 
development, and concurrently develop norms, ethics around the 
employment of those systems, we are going to abdicate our 
leadership position.
    Senator Rounds. Mr. Sankar.
    Mr. Sankar. I concur with that.
    Senator Rounds. Dr. Matheny.
    Dr. Matheny. Agreed.
    Senator Rounds. Thank you. Thank you, Mr. Chairman.
    Senator Manchin. Senator Schmitt.
    Senator Schmitt. Thank you, Mr. Chairman. Thank you all for 
being here and for your testimony, and willingness to answer 
questions on a very important topic that I think I don't speak 
for everybody, is sort of not knowing where all of this leads 
provides an opportunity, maybe even a bipartisan way to help 
shape some policy here.
    AI and machine learning are at the forefront of 
technological innovation and the great powers competition 
between China and United States. It is critically important, 
and so your recommendations are important.
    AI is a transformative tool, and like other tools that can 
move society forward, but is also ripe for abuse. We see this 
abuse already happening. China's implementation of AI has 
allowed for mass surveillance of innocent Chinese citizens who 
have no chance at privacy.
    U.S. tech companies have a responsibility to ensure that 
these powerful tools don't fall in the hands of authoritarian 
regimes who use it for activities that run contrary to basic 
human rights.
    I was deeply alarmed by Google and its departure from 
Project Maven on unfounded or concerns that they had that 
business with DOD was unethical. Yet continued AI research in 
China that could have very well contributed to the mass 
surveillance and repression of over 1.4 billion people.
    We have to do everything we can to not only develop this 
technology, but also to ensure it is being done and used 
responsibly. I guess my first question here, and this is a long 
question, but I will go to you first, doctor.
    In 2017, Google opened up the Google AI China Center, which 
focused on basic AI research in Beijing. While Google engaged 
in AI research under the watchful eye of the Chinese Communist 
Party, the company shunned the Department of Defense and broke 
ties with DOD's Project Maven because of alleged ethical 
concerns. Ironically, shortly after Google opened up its AI 
China Center, Google erased its longtime motto of, don't be 
evil.
    Why Google would coincidentally abandon this decades long 
motto while operating its AI research center in Beijing, I 
can't say for sure, but it doesn't look good. But I do know the 
Chinese Communist Party has engaged in basic human rights 
abuses, genocide, and mass surveillance of over 1.4 billion 
citizens.
    Big tech companies like Google need to have the moral 
backbone to resist these grandiose ideas of market access and 
increased profits in exchange for IP [intellectual property] 
rights that could ultimately be used as an effective tool of 
repression in an authoritarian regime and also turned on us, 
the United States of America.
    Despite Google closing its Beijing based AI Research center 
in 2021, the potential applications remain. General Dunford put 
it that any work by United States companies who aid China in 
the development of AI would, ``help authoritarian government 
assert control over its own population,'' enable the Chinese 
military to take advantage of United States technology.
    Dr. Lospinoso, do you agree with General Dunford's 
statement?
    Dr. Lospinoso. Thank you for the question, Senator Schmitt. 
I wholeheartedly agree with General Dunford's statement. I 
think doing business in China is equivalent to providing 
technological capabilities to the Chinese military.
    This is the great power competition of our time. I don't 
think it is a question of if, it is a question of when. Schift5 
has never and will not do business with the Chinese military, 
and we think it is a matter of utmost National Security.
    Senator Schmitt. Well, and I think--so, I am 47. So, when I 
was going to school and we were learning about these things, 
and I think for a long time, I think the belief was that you 
have a greater opportunity for democratization and the more 
educated people become they are aware of the opportunities, and 
that would ultimately be the way that the Chinese Communist 
Party would be overthrown from within.
    The scary thing about AI is that AI only strengthens a 
communist regime's ability to control the flow of information. 
All of these assumptions that were made for a very long-time 
sort of go out the window.
    AI in many ways is sort of built for an authoritarian 
regime, which I think in this great powers competition we are 
in not just with China, but around the world, it has 
implications that are, I think, really scary. So, I don't know, 
I mean, I think the American public is trying to figure this 
thing out, too.
    For me, we have to engage from a military perspective 
because it is do or die quite literally, from a military 
perspective. But from a commercial application, it is really 
scary stuff. So just curious, I don't know how much time left, 
but for each of you, what keeps you up at night about this, and 
what can be done to address those concerns?
    Dr. Lospinoso. I share those concerns, Senator. Briefly, 
the thing that keeps me up at night is, a fanatic here has been 
the central role of data, and the power of AI algorithms and 
their applications. I can think of few governments more adept 
at collecting and retaining data than the Chinese Communist 
Party.
    The fact that they have such pervasive collection not only 
of their own citizens, but of citizens around the world through 
a variety of mechanisms. That gives them a significant leg up 
in using AI for the purposes that you articulated.
    Mr. Sankar. What keeps me up at night is, do we have the 
will? I think we do. But the issue of AI adoption is really one 
of willpower. Are we accelerating adoption like our survival 
depends on it, because I believe it does. I think you see that 
in our adversaries. They realize that their survival depends on 
it, and we should move at pace to do this.
    Dr. Matheny. What keeps me up at night is AI being applied 
to the development of new cyber weapons and bioweapons for 
which we don't have reliable defenses.
    I worry that right now the most likely scenario is one in 
which those models were either stolen from the United States or 
built with U.S. tech, U.S. chips, U.S. chipmaking equipment.
    I think the strongest argument for a pause is our own labs 
need to get their cybersecurity together to reduce the 
likelihood that the models that they are building will be 
stolen by our adversaries.
    [Technical problems].
    Senator Manchin. Dr. Matheny--thank you. Our hope today was 
to have witnesses from Scale AI present, because of scheduling 
they couldn't make it, to discuss their data management 
practices to ensure the data being fed into the algorithm is 
consumable. Just to put this in context for the public, private 
industry has to buy the majority of data they need to feed into 
their AIs.
    But DOD is in a unique position, given the wealth of data 
we are collecting on a daily basis from every network, node, 
and physical sensors in all our equipment. The problem seems to 
be in owning that data and making sure it is all the same 
format for an AI to recognize and use.
    My question is this, is it fair to say that the data an AI 
interprets and learns from is arguably more important than the 
algorithm itself?
    Dr. Matheny. I think it is all important. I mean, sometimes 
the analogy is used of, you know, three legs of a stool. You 
have got data, the algorithms, the compute, and then the floor 
is talent. I mean, that is something that is essential to all 
of those. So we need to invest in all four of those elements.
    I do think that data can be a place where the United States 
has an asymmetric advantage because of the amount of data that 
we collect from systems that have operated globally in a way 
that, say, China's systems or Russia's systems haven't. This is 
an observation that the Director of Net Assessment at DOD made, 
which I think is accurate.
    We simply collect more data from more platforms that are 
relevant to military operations than any other country. But we 
are not fully leveraging that. We need to ensure, one, that we 
appropriately collect, store, align the data, place it in data 
bases that can actually be leveraged.
    I think one of the things that was most striking about 
Project Maven was just how much work had to be done on data 
cleaning, alignment, getting networks to talk to each other. It 
was that stuff. It wasn't the sexy algorithm stuff that was the 
hard part. It was the elbow grease needed to just ensure the 
data was in the right place.
    Senator Manchin. Any other comments from anybody else on 
the panel on that? I might have a followup to you. Here is a 
followup, so you can think about this, too. How would you 
summarize the Department of Defense's data management 
practices, and how could they be improved to make sure that 
every bit of data that we are collecting is available for our 
usage, not limited by silos between private contractors? That 
is kind of the followup to the first issue.
    Mr. Sankar. I would like to build on the stool analogy 
there, and I will get to your followup question. You can't make 
one leg of the stool long and tall first. That is not a very 
good stool.
    I would urge us to resist the temptation to say, first we 
need the perfect data foundation, then we go on. Actually, it 
is, if we look at the Project Maven example, there is the fact 
that we suddenly had the algorithms that pointed us to the fact 
that the data was garbage. So, these things move together and 
we have to simultaneously coordinate the investment and not 
slice these up into different responsibilities.
    It is now the fact that we have these powerful large 
language models that is telling us that we actually don't have 
enough CPU [central processing unit] capacity in the world, and 
so, you know, I think the stool analogy is a very good one.
    Now to your question here, I would say this idea that we 
are operational is profound. It is our advantage. We do things 
everywhere in the world. I would say we definitely collect more 
data, but we also throw away an enormous amount.
    Part of my experience has been every place we have shown up 
in a new operational context, there is data we could be 
collecting that in a prior generation of software was perceived 
to be useless because there was no operational decision you 
could have been making with that data so it was often thrown on 
the ground.
    When new capabilities were introduced, the utility of that 
data became obvious on its face. So, this is a powerful 
feedback loop that really feeds into our American culture of 
innovation, solving problems at the edge with the capabilities 
we are providing. I would say the data management efforts are 
great.
    There are definitely some policy opportunities that would 
make it world class. So how do we all get on the same page 
here? I think we have to get the incentive structure right 
around how we share data.
    So, a mandate that all data must be shared because it is 
actually the Government's I think is great in theory, but in 
practice, in order to enable all of the folks with various 
interests to do that, you need a data foundation that gives you 
true security. How am I labeling this data? How do I control 
who has access to it?
    How do I govern the purposes for which they are allowed to 
use this data? Once I develop trust in how we are governing 
access to this data platform within the Defense Department, 
now, we can actually share this data.
    Senator Manchin. That was the question we are asking on the 
front end.
    Dr. Lospinoso. Thank you, Chairman. I completely agree with 
everything that we said here. I would add, though, that while 
it is clear that we are the best in the world at collecting 
data, we have got some work to do on data architecture and 
access to that data.
    I still want to emphasize that we have a significant amount 
of work to do with the computers that don't look like 
computers, these weapons systems that we operate around the 
world. I will tell you, when I was in uniform, it drove me 
absolutely crazy that we could operate an aircraft or a ground 
combat vehicle or a submarine in a combat environment and not, 
number 1, be able to collect or own the data that came off of 
that platform.
    That is just a massive National Security issue. I think we 
need to get better at enabling these systems, these weapons 
systems with the kinds of data collection to feed into this 
data architecture so that we can get the enterprise IT 
[information technology] computer side as well as the weapon 
systems.
    That is going to be our real advantage, and I will just end 
with one comment here, which is increasingly, you know, we had 
this conversation around cryptography when we were thinking 
about what can we put backdoors in the encryption.
    There is a sense in which when these AI algorithms get out 
into the public domain, and there is academic papers and PhD 
thesis that are written about these things, they are kind of 
cat is out of the bag.
    So, on some sense we should continue to try to keep models 
guarded, but that is a time advantage. At some point it is 
knowledge and it is going to get out there. The real advantage, 
what we can control is the data, that one leg of the stool that 
our adversaries won't have, and then we retain our leadership 
position and being able to employ these AI models.
    Senator Manchin. Thank you all. We will continue this, but 
now, Senator Rounds.
    Senator Rounds. Thank you. I want to followup with that. I 
am going to begin with Dr. Lospinoso. When we talk about data, 
China right now, the People's--the Chinese Communist Party has 
collected huge amounts of data on their own citizens.
    We don't do that in the United States. But they have been 
very good about collecting it on their own people. We know that 
they have laid out not only facial ID, but they can track their 
people no matter where they are going, what they are doing, the 
transactions, their financial transactions, who they associate 
with and so forth.
    They have been doing it for years, and they have gotten to 
be very, very good at it. They clearly are using AI. They have 
clearly figured out a way to do the types of data bases that 
can be manipulated to be able to go back and collect that data, 
we are assuming. In the United States--we need to be able to 
compete with that type of computing power and that type of data 
collection and storage.
    Do we have that capability in like kind and quality, as 
China does today in terms of implementing it and using it? Do 
we have the practical application today that they have 
exercised in China on their own people?
    Dr. Lospinoso. Thank you, Ranking Member Rounds. I would 
say that from a technological capability perspective, there is 
no reason that we couldn't implement the same sorts of 
platforms. Perhaps they have national foreign intelligence 
value, for example. Of course, we have ethics and freedom 
constraints that keep us from doing the same sort----
    Senator Rounds. Which we absolutely have to protect.
    Dr. Lospinoso. Absolutely have to protect----
    Senator Rounds. We have to protect privacy in the United 
States.
    Dr. Lospinoso. I would say that one opportunity here 
potentially is we talked about ways in which AI algorithms can 
be subverted. I think there is an opportunity for us to also 
make investments not only on the defensive side, but on the 
offensive side when we are talking about great power 
competitions in thinking about how do we subvert adversary AI 
as well.
    There is an asymmetry to these sorts of things that is 
corollary to cybersecurity, where sometimes the best defense is 
a good offense.
    So I think we ought to be investigating ways in which 
adversarial AI and things of that nature, data poisoning might 
be able to meaningfully degrade the just objectively terrifying 
developments that we are seeing in some of these things, like 
the social scoring and, yes, the over the intelligence 
apparatus that the Chinese Communist Party----
    Senator Rounds. Thank you. Dr. Matheny, you were involved 
in the AI Commission, specifically with regard to defense. I 
have had the opportunity to see not just the unclassified but 
the classified report.
    Recognizing that we are in an unclassified environment 
here, I would simply express that I think there was a huge 
amount of extremely valuable data that was found in the 
classified portion that transcended the Defense Department's 
needs and really went into areas that could be extremely 
helpful to other parts of our governance system.
    Clearly, in terms of health care, truly making a quality 
difference in a lot of people's lives long term, if we could 
appropriately use and promote AI in a number of different 
fields. Can you talk a little bit--let me just express my 
frustration.
    It was so classified that in many cases chairmen of other 
committees that could have utilized the data or the ideas that 
were recommended, that they didn't even have access to the 
reports or the recommendations.
    I found that to be extremely concerning. I would just like 
you to share a little bit, if you could, how much of an 
opportunity the implementation, the appropriate implementation 
of AI could mean to the quality of life to people that live in 
this country?
    Dr. Matheny. Thanks so much. I will take it back to our 
fellow commissioners and to the NSCAI staff the opportunity to 
think about how to create a tearlined version of the classified 
annex at a lower level of classification. I do think that the 
opportunities to solve society's problems with AI are profound.
    The applications to advancing human medicine, energy, 
agriculture, and materials science. We are seeing some early 
signs of that, everything from Alpha fold, solving the protein 
folding problem to make protein design possible at scale for 
new drugs, or the design of new fusion reactors, or solving 
math problems that had eluded human ingenuity for years.
    So, the positive applications are so profound that we have 
to figure out a way to put appropriate guardrails so that we 
get the upside without the downside.
    Senator Rounds. Thank you. Dr. Sankar, would you like to 
add anything with regards to the opportunities that AI provides 
to this country if we properly implement its use?
    Mr. Sankar. I think the opportunities are world changing.
    The way for us to maximize that is to align behind them. 
You know, we have significant growth in our health care costs. 
How do we align behind the application of AI to driving the 
national outcome that drives patient care and quality?
    So, I think there are a couple of places where Government 
leadership, where the issue is not capital, its customers.
    Providing the sort of bootstrapping foundational customer 
to drive the concentration of energy to solve the problem and 
to realize where we need policy to help us reorganize the many 
seams that are between here and realizing the benefit for 
American citizens.
    Senator Rounds. Thank you. Thank you, Mr. Chairman.
    Senator Manchin. Senator Schmitt.
    Senator Schmitt. Thank you, Mr. Chairman. Dr. Matheny, you 
just mentioned something that struck me as getting the upside 
without the downside. Is that really possible, though? Like the 
concern that I get it--but it seems to me that we have got a 
tiger by the tail. There is not going to be a pause.
    It is moving. The choice that we have is, are we going to 
lead or not lead, right? From a military perspective, the 
answer is very clear, we have to. But getting back to the 
initial question, what role does the Government have by way of 
regulation that can--what would you suggest?
    Not--and I throw this for all three of you, because there 
is a downside and the downside--we will feel the downside. But 
I guess from a risk mitigation perspective, what can be done 
because, you know, I am a lawyer. A very popular profession, 
but, there is going to be--right, well-being.
    Yes, combine those two, Mr. Chairman. But, a lot of the, 
what first your associates did 10 years ago, that is gone. 
There is displacement that you are going to see everywhere.
    But what would you guys suggest as far as--so that we 
minimize some of the risk that--the bad things that can happen?
    Dr. Matheny. I think there are good----
    Senator Schmitt. I don't mean displacing lawyers. That is 
not one----
    [Laughter.]
    Dr. Matheny. That is right. No, that is off the table. 
Absolutely. I do think there are good pre-regulatory and 
regulatory steps that the Department of Defense can help to 
lead in.
    The first is thinking about using Defense Production Act 
authorities to require that companies report when they are 
training very large models, how they are training very large 
models, where those models are going, and preventing open 
sourcing of models that could be used by adversaries 
maliciously.
    Also including in DOD contracts, cloud computing provider 
requirements that they know their customers before they provide 
services, not just for the DOD customer, but for all customers. 
This is really an extension of the common rule that is already 
a feature of Federal contracts for other purposes.
    So, this already has precedent and use. The same for AI 
developers to know their customer and to develop cybersecurity 
requirements in our contracts so that those developers are less 
likely to get their models stolen.
    Mr. Sankar. I might add on to that too. There might be two 
aspects to the tiger's bite here. The first is, as you think 
about regulation, one of the realities of these AI models is 
that they are actually brittle.
    That is the failure condition. That in the sweet spot, they 
seem magical. They seem more than human like, and just even one 
iota outside of the sweet spot, they become moronic. If you are 
trusting a moron, that is a problem.
    So then how--the regulation framework is really about 
understanding the surface area and red teaming the model--where 
is the model going to work? Where is the behavior unexpected?
    What do I expect of the model makers in terms of 
continuously testing as they upgrade and develop the model so 
that it is behaving in accordance to what the model is supposed 
to do? Those expectations are going to be different in health 
care than they are going to be in defense.
    I think that is a generalized way of thinking about where 
is the risk in a concentrated basis. The second aspect of the 
tiger's bite is what it means for American prosperity. 
Technology is supposed to drive increases in productivity. The 
kind of basic economic theory here is those increases in 
productivity lead to increases in our standard of living and 
wages.
    Hold tech companies accountable to that. Where are the 
increases in wages? If I am deploying this technology to a 
manufacturing company, the workers should be better off, not 
displaced. It is actually a choice, and I would say an 
abandonment of our obligation to the Nation to simply say, I 
have no opinion on how the technology is deployed.
    Of course, AI is going to replace workers. That is not a 
foregone conclusion. AI can make those workers more valuable, 
it can drive up their productivity, and they should capture the 
growth of wages as a result. Concomitantly, with the company 
capturing value in the market from doing so. I think tech 
companies need to do more here.
    Dr. Lospinoso. I would concur with all of that. I would say 
there is a need for regulation, unfortunately, because there--
it is really hard to put technical controls in place that are 
going to prevent folks from doing the sorts of things that Dr. 
Matheny is concerned about. I also think that the displacement 
of workers compensation is really important as well when we 
talk about policy.
    I mean, we have been for over 100 years talking about 
creative destruction, right. You learn about this in basic 
economics, Joseph Schumpeter. There are technological 
innovations that create displacements and folks are sort of 
temporarily out of work. We retrain them and then raw economic 
output is stronger than ever before because we figure out ways 
of using the new technology.
    I think we need to be thinking about ways of training and 
empowering folks that will be disrupted by technology. But 
ultimately, they are going to be faster, more efficient.
    We are going to elevate those workers out of routine, 
mundane, error prone tasks into more advanced kinds of modes of 
work needed. From a policy perspective, think about how we ease 
that transition from where we are today onto where we are going 
tomorrow.
    Senator Schmitt. Thank you.
    Senator Rounds. On behalf of the Chairman, Senator Peters.
    Senator Manchin. I am so sorry. I am going to have to 
leave. You are in much better hands with Senator Rounds here. I 
want to thank you all. It has been great. I just want to say 
this, that I think that as the world turns, if you will, and 
what is happening around the world and all of the different 
buildup military might.
    Just got back from Poland and Ukraine, saw what was going 
on there. I want to talk to you a little bit more about Maven 
and we will get into that later. My concern truly is this, this 
is a game changer. They can be developing all the super 
hypersonic missiles and everything else and all that space and 
everything else, this changes the game, whether they can deploy 
it or not.
    If we are able to have that information and be able to 
source that to a point where we have more input and be able to 
be more accurate in what we are deploying, I think it changes 
the game for the United States to continue to be the superpower 
of the world. So, I want to thank you all, and we really need 
your input and help and look forward for your recommendations.
    Senator Peters, before you came, we talked about what had 
happened with the internet came in 1983, section 230 came in 
1996. We made so many mistakes. We are trying to really go back 
and we are having a hard time. We want to prevent that from 
happening.
    They are going to give us--we asked them to give this 
Committee the recommendations on what we could do to put the 
guardrails in place that we can be superior in this and make 
sure that their product or their platforms aren't misused for 
nefarious situations.
    Senator Peters. Thank you, Mr. Chairman, Ranking Member. I 
just, coming in your conversation on the disruption for 
employment and what that is going to mean going forward. You 
are right, I am not like a robot apocalypse guy or anything, 
thinking that all of our jobs are going to disappear and the 
robots are going to be in charge.
    But we know when you talk about disruption, my sense is 
this is more disruptive than anything we have seen. Some people 
compare this to like the printing press and the steam engine, 
things of that nature, which were big.
    As I think about this, what was different that time is it 
took a lot of time for that technology to actually get through 
the system. When you are talking about the industrial 
revolution, is probably over 150 years, and we are all 
benefiting from the industrial revolution of 150 years. But in 
150 years we had world wars, the rise of communism and fascism, 
and political discord.
    This may happen in less than a decade versus 150 years. So, 
the speed of this--has us all very concerned. I am glad you are 
thinking about this, but we have got to try to stay ahead. I 
don't know how you can stay ahead because of the rapid pace of 
what this is going, which is why we are going to need your help 
going forward.
    As the Chairman mentioned, we want to make sure that the 
United States continues to be at the forefront. But, part of 
that are--really are the investments. So, I would just be 
curious, as from a Government perspective right now, what 
should be our priorities in investing to make sure that we are 
able to use AI with enhancing our ability to secure our 
networks and cybersecurity.
    Maybe each of you kind of give me your, what do you think 
is one or two priorities for investments that we are not making 
now, or maybe we are, we should do more, or ones that we should 
be considering that we are not doing now? Whoever wants to 
start.
    Mr. Sankar. Senator, I will start. I will take a stab at 
it. I think the key thing is we should be using AI, right. So, 
there is a lot of focus on the models, the foundational 
capabilities, the infrastructure, developing the AI.
    But AI is not a standalone capability. It has to be brought 
to bear in the application. I think one of the real experiences 
for Maven and certainly in the commercial world is you can't 
really bolt this on exposed to existing infrastructure.
    You will find that that is limiting you and it forces you 
to reimagine the user interfaces, the software approaches, the 
actual pane of glass you are using to make decisions. So, I 
think the long pull in the tent for us, where we are in this AI 
cycle is getting busy using it.
    I think that also informs policymakers on the risks, both 
on the adversarial sense, but perhaps more importantly, the 
risks to jobs and how we are going to manage our way through 
that.
    Senator Peters. Great. Thank you.
    Dr. Lospinoso. Thank you, Senator. I think the single 
biggest asymmetric threat that we face today is, in a world of 
near peer conflict, is the cybersecurity of our weapons 
systems. You know, I spoke in my opening remarks about the 
GAO's [Government Accountability Office] 2018 cybersecurity 
weapons systems report, unclassified.
    You can sort of read about these broad problems that exist 
across basically every major weapon system we have. We have 
made disconcertingly little progress. In talking to program 
managers, it is a funding and requirements problem on these 
legacy weapons systems.
    We are making great progress on new weapons systems and 
thinking about how do we encode requirements in these platforms 
to make sure that this aircraft is going to take off when we 
need to gain air superiority over an area.
    I think that enabling those program managers to make the 
investments in building cybersecurity into these platforms is 
of the utmost importance. I will also just make a side comment 
here that many of these investments come together and are 
mutually supporting.
    So, one of the ways that we bring cybersecurity to our 
weapon systems, to our enterprise networks, is through 
observability, and observability is rooted in data. By 
collecting data off of these weapon systems, we are also 
supporting things like AI ready and AI enabled military.
    We are currently not collecting the vast majority of data 
that these weapon systems are collecting, so I would highly 
recommend that that is a very high ROI [return on investments] 
area for investment.
    Senator Peters. Before we go to the next, so collecting the 
data, which is the key thing, especially when we are looking at 
automation--I am really involved with self-driving cars on the 
commercial side from--in Michigan, but it is all about having a 
massive dataset.
    We have all of these weapon systems out there that are 
collecting it, but you are saying it is not collected in one 
place, it is not really usable to train our systems. That 
should be a priority.
    Dr. Lospinoso. Yes, Senator. So, the actually the vast 
majority of data that these systems generate evaporates into 
the ether without ever getting collected, unfortunately.
    We struggle mightily with extracting even the simplest data 
streams off of the vast majority of our major weapons systems. 
In some cases, that is just because we haven't made the 
investment.
    In other cases, it is because the defense primes, frankly, 
lock that data up and they don't want the Government to have 
access to it because they want to use that as an opportunity to 
build additional products or services on top of that platform.
    I think that if we are going to win in a near-peer 
conflict, the DOD needs to own the data that its weapon systems 
are generating in a combat environment. I think that we really 
need to pay attention to that.
    Senator Peters. Yes, I would like to pursue that further 
with you at some point.
    Dr. Matheny. I think given the massive private sector 
investment in AI right now, it makes sense for the Federal 
Government to concentrate on the places where it has a unique 
role, where there is a market failure or an authority that only 
the Government can exercise.
    One of those, I think among the most important, is in 
thinking about the talent that is needed to support AI 
development in the United States. One of our leading sources of 
talent is global, and the United States has an amazing 
asymmetric ability to attract scientists, engineers from around 
the world, but we often don't let them stay.
    We are punishing ourselves by not taking advantage of this 
asymmetric capability that the United States has to serve as a 
magnet for global talent. So, I think that is essential. If we 
want to win that competition against a country that is four and 
a half times our size, is producing more PhDs than we are, 
twice as many master's students in STEM [science, technology, 
engineering, and mathematics] fields, we have to attract the 
global team to join ours.
    A second key area is cybersecurity requirements for the 
leading AI labs so that they are less likely to have their 
models stolen. A third is export controls on chips and chip 
making equipment so that our competitors don't have access to 
leading edge compute.
    A fourth is Federal research that is focused on the places 
where the commercial sector is going to under invest, including 
in AI security and safety, but also thinking about how we break 
other countries' models, because I think these models right now 
are very brittle.
    We need to be thinking about ways that we can slow down 
progress elsewhere by doing things like adversarial attacks, 
data poisoning, model inversion. Let's use the tricks that we 
are seeing used against us and make sure that we understand the 
state-of-the-art.
    Senator Peters. Best defense is a good offense, is that 
your point? All right. Thank you. Thank you, Mr. Chairman.
    Senator Rounds. Thank you, Senator. We are getting close to 
the end of the session, I think. I am not sure if any other 
Members that are coming in, but I just want to recognize, and 
Dr. Matheny, I think you hit it on the head with regard to our 
need and the discussion about a legal immigration system that 
allows us to bring in talent that benefits our country.
    Can you imagine a world today if Albert Einstein had not 
been allowed into our country? The world would be a different 
place today and not to the betterment.
    I want to thank you all and I want to end with one that I 
sometimes think that when we have an unclassified session like 
this, we don't get an opportunity to get into some of the 
deeper items, but we also sometimes miss the opportunity to 
perhaps explore a little bit about some of the basics that just 
in terms of trying to explain what AI is.
    I would like to offer a scenario, and then briefly, I would 
like to have you be critical of my analysis, if you would, 
please, Okay. So, looking at this, because I am a pilot and I 
think about what we have right now with regard to computing 
capabilities in most of the aircraft today.
    We have an autopilot which once a pilot has departed a 
runway, they basically can set the heading, turn the autopilot 
on, set the heading, tell it to navigate to a particular point 
that they have already programed in, set the altitude, and then 
lay in an arrival and an approach. That autopilot, will, with 
very few exceptions and with no more touching by the human, fly 
that course.
    If there is changes along the way, frequencies and so forth 
in terms of communication, the pilot will make those 
modifications, so that the monitoring is constantly going on. 
With AI, it would appear to me that we are not really talking 
about an autopilot approach anymore.
    What we are really talking about is having a system that 
does everything that the human does, but in a much more orderly 
and defined and disciplined way, so that it not only does 
everything that an autopilot would do, but it also makes the 
decisions about how to get there in the first place and where 
it wants to go.
    Now having me said that, can you criticize or be critical 
of my analysis so that folks back home get a better sense of 
what AI means as opposed to simply talking about very powerful 
computers? Mr. Sankar, I hope that you have had an opportunity 
to go first. Let me put you on the spot first, sir.
    Mr. Sankar. Well, I think at, the limit your vision is 
right, but I think you have to earn your way there. If we think 
about how long it took us with self-driving cars. I think the 
folks who have done really well, they are shipped 
incrementally. It is like we made the car a little bit more 
autonomous every single day.
    At this point it is quite compelling. There is still, you 
know, can't do the snow, can't do certain low visibility 
conditions, but they are going to earn their way there. So, as 
we think about what is this likely to be today, I think these 
are tools, not agents. They can become agents. That is kind of 
the journey we are on.
    But we are not going to get that for free. That is a lot of 
hard work that we are going to collectively do between here and 
there. I think for a lot of things today, the AI is a median 
human, which means it is going to be great at replacing a lot 
of tasks that allow our humans to do things that are 
cognitively more interesting.
    The brittleness of the AI means that for new creative 
things, there is likely going to be an editor role. It is going 
to take our humans from being doers to managers, and that gives 
them a huge amount of leverage. In the same way that technology 
for all of history has given us a huge amount of leverage.
    We sometimes underestimate what it has meant for us to have 
a palm sized supercomputer in our pocket. But profound, and I 
think we will look back and say the changes were just as 
profound, but perhaps slightly different than we anticipated.
    Senator Rounds. Thank you. Dr. Lospinoso.
    Dr. Lospinoso. Thank you, sir. I think we are in a really 
exciting era and things like ChatGPT have really enraptured 
people because we were talking about this before the 
testimoneys, there is a level we have crossed with these 
generative AIs that it is surprisingly good.
    Oftentimes if you just start a draft of something or you 
are iterating on some initial ideas, whether it is for, it can 
write poetry, it can generate images, it is displaying what we 
would start to think of as some form of intelligence. I think 
that is, sir, what you are kind of getting at, is we are past 
the point of, is this a water bottle or a cup of coffee?
    Now we are talking about what would be interesting flavors 
to put in the water bottle. It is a gray kind of fuzzy line, 
but I share the sentiment that we are entering into a new 
territory with these models where we are not just doing the 
classic clustering, classification, prediction types of things.
    We are starting to get into territories that were up until 
very recently reserved for human brains. We have got a lot of 
work to do, and I think we need human oversight of these 
mechanisms.
    But even in our own personal experience, I think they have 
been really powerful at initial drafts of papers and things of 
that nature. So, we are going to see a lot of progress.
    Hopefully the planes aren't fully flying themselves, there 
is still a human being in them for some considerable time, just 
given what we know about the brittleness of these models, so.
    Senator Rounds. Thank you, sir. Dr. Matheny, last word.
    Dr. Matheny. I think we have got co-pilots in training. It 
still requires a lot of human supervision. But while they are 
getting more capable, we need to develop the licensing regime 
so that they get a pilot's license at the end that we can be 
confident in.
    Senator Rounds. Yes. Thank you. Thank you to all of our 
witnesses for coming and sharing with us today. This--on behalf 
of the Chairman of the Subcommittee, we will now adjourn. Thank 
you.
    [Whereupon, at 10:48 a.m., the Committee adjourned.]

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