A new Artificial Intelligence (AI) framework has been introduced in the US Senate, proposing a $32 billion government investment in non-defense AI research. This “all-hands-on-deck” approach to funding AI innovation has garnered support from both Democrats and Republicans.
However, despite the significant investment aimed at boosting domestic AI research and development, The Driving US Innovation in Artificial Intelligence proposal does not include urgent or clear guidelines for federal AI regulation.
In fact, the proposal suggests that relying on “existing laws for AI” is currently the most immediate way to protect against nascent machine learning principles.
This is especially notable given that there is no federal data privacy framework in place in the United States—a challenge that has frustrated policy experts for over twenty years.
Instead, as Senate Majority Leader Chuck Schumer (D-NY) explained in an official statement following the proposal, this new plan calls for even more proposals to clarify the details of future legislation—without holding up the $32 billion in R&D funding, which could be available as early as 2026:
“Our working group was able to identify key areas of policy that have bipartisan consensus […] Now, the work continues with our Committees, Chairmen, and Ranking Members to develop and advance legislation.”
The bottom line? Funding AI innovation—and keeping the country competitive in this field—is the top priority for the US officials behind this new framework.
And what about long-awaited data privacy regulations? Those will have to catch up later.
“With AI advancing so quickly, the Senate can either lead or follow. We intend to lead, to deliver for the American people, and to help ensure that AI benefits society rather than threatens it,” said Senator Martin Heinrich (D-NM), co-founder and co-chair of the Senate AI Caucus. “This roadmap puts us in a position to unlock AI innovation that will drive major scientific and medical breakthroughs and help us maintain global leadership.”
Private sector welcomes new AI funding—but not without criticism
Evan Greer, director of Fight for the Future, was among the most vocal critics of the new proposal, quickly pointing out the lack of “serious discussion” about open source AI products and the absence of details on long-promised privacy protections.
“The framework is eager to pour Americans’ tax dollars into AI research and development,” Greer said in response to the Senators’ proposal. “Meanwhile, there’s almost nothing meaningful about some of the most urgent AI policy issues, like the technology’s impact on policing, immigration, and workers’ rights.”
Despite the criticism, the framework does lay out a practical path for using existing funding sources and government programs to quickly distribute the $32 billion in R&D funding across both government and private sector stakeholders. This includes prioritizing parts of the landmark CHIPS and Science Act that haven’t been fully allocated, as well as addressing backlogged NIST initiatives related to AI development.
Government policy is ramping up as businesses adopt AI
While critics are right to worry that AI innovation is moving faster than consumer protections, it’s important to note that AI adoption has shifted from “experimental” to “operational” for businesses in every sector.
Beyond the growing number of companies developing new AI solutions, businesses are using AI to close operational gaps and boost efficiency in the face of ongoing economic challenges.
For example, according to the latest research from Ramp, the average business spent $1,500 on AI tools in Q1 2024—a 138 percent increase from the previous year. Looking at the full year, AI spending among Ramp customers grew 293 percent, with no signs of slowing down.
In fact, mid-market companies are leading the way in AI adoption, with average spending per company rising from just over $1,000 in Q1 2023 to more than $2,500 today.
AI and automation are driving efficiencies and scale
While concerns about the rapid adoption of AI are valid, investments from both government and the private sector in advancing AI are proving to be worthwhile.
Not only are businesses inside and outside the tech sector benefiting from new AI solutions to streamline operations and cut costs, but innovative companies developing new AI technologies can also take advantage of government support to help fund their R&D.
The US’s R&D Tax Credit, for example, can be used to offset income or employer payroll taxes for businesses engaged in truly innovative research and development. This helps them reduce their tax burden, keep more cash on hand, and potentially maintain more equity as they work to create new solutions that move the field forward.
Beyond federal incentives, there are also state-level R&D tax credits available across the US that teams can use to fuel more R&D and create homegrown AI solutions that may attract additional government funding.
At Boast, we’ve helped thousands of startups across North America secure non-dilutive funding to power their product roadmaps and accelerate their R&D.
Along with insights into available tax credits, our platform brings together key financial and project tracking systems in one place, giving you the intelligence you need to optimize your strategy and capitalize on your team’s innovation.
Talk to one of our R&D tax credit experts today to learn how you can access government funding and secure the innovation capital you need to extend your runway.
New AI Framework FAQ
- What is the new AI framework proposed in the US Senate? The new framework, called “The Driving US Innovation in Artificial Intelligence,” proposes a $32 billion government investment in non-defense AI research. Its goal is to boost AI innovation and keep the US competitive in this field.
- Does the framework address AI regulation and privacy concerns? No, the framework does not include urgent or explicit guidelines for federal AI regulation or data privacy laws. It suggests relying on “existing laws for AI” as an immediate safeguard, even though the US lacks a federal data privacy framework.
- How does the framework plan to allocate the $32 billion funding? The framework calls for using existing funding sources and programs, such as the CHIPS and Science Act and NIST initiatives, to quickly distribute the funds across government and private sector stakeholders.
- Why is AI adoption increasing in the private sector? AI adoption has shifted from “experimental” to “operational” for businesses across sectors. Companies are using AI to close operational gaps and boost efficiency in the face of economic challenges. Average business spending on AI tools grew significantly in Q1 2024 compared to the previous year.
- How can businesses benefit from government support for AI innovation? Businesses engaged in innovative AI research and development can take advantage of government incentives like the R&D Tax Credit to offset income or payroll taxes, maintain liquidity, and potentially secure equity in their business. State-level R&D tax credits are also available across the US.
