House passes two AI-focused SBA bills

The House on Tuesday passed two bills intended to bolster Small Business Administration efforts to use artificial intelligence in assisting clients, kicking the bipartisan legislation over to the Senate.

The AI for Main Street Act and the AI Wisdom for Innovative Small Enterprises (AI-WISE) Act easily cleared the lower chamber after advancing out of committee last November. In the upper chamber, Sens. Todd Young, R-Ind., and Maria Cantwell, D-Wash., introduced a companion bill earlier this month.

Under the AI for Main Street Act, the SBA’s Small Business Development Centers would provide guidance, training and outreach to small businesses on any matters tied to AI. The legislation builds on a Google-backed SBDC initiative known as AI U, which provides 1-on-1 coaching and other AI resources to small businesses. 

“This is not about replacing people; It is about empowering people,” said Rep. Mark Alford, R-Mo., who co-sponsored the bill with Rep. Hillary Scholten, D-Mich. “It’s about giving a family-owned business the same opportunity to compete and grow and innovate as a Fortune 500 company.”

Rep. Nydia Velázquez, D-N.Y., ranking member of the House Small Business Committee, said that while AI has all the potential in the world to help small businesses, guidance is needed — which this bill offers.

“While it is becoming increasingly common for small businesses to use AI to streamline their operations, many still do not have access to it responsibly,” she said. “But if you use it incorrectly, AI could have disastrous consequences. That is why it is incredibly important for SBA and its entrepreneurial ecosystem to help small businesses understand the potential pitfalls and learn how to avoid them.”

The AI WISE Act, meanwhile, directs the SBA to produce guidance for small businesses that plainly spells out best practices for the emerging technology in the form of educational resources, learning modules and other guidance. Those resources would be hosted on an existing SBA platform. 

“Artificial intelligence is changing how businesses operate in real time,” said Rep. Roger Williams, R-Texas, chair of the Small Business Committee. “And while large corporations can afford expensive consultants and trial and experimentation, many small businesses do not have the luxury to do that. For a small business owner like myself, every dollar matters. The Al WISE Act helps bridge that gap.”

Rep. Troy Downing, R-Mont., who co-sponsored the AI Wise Act with Scholten, said the AI educational resources created through this legislation will be especially helpful to small businesses in rural districts, like his in eastern and central Montana. 

“The scope of this educational material will include resources for small businesses on how AI models work, how businesses can identify tasks with AI and can effectively perform the best practices for coordinating with third-party providers and protecting data privacy,” Downing said. “The AI WISE Act will ensure small businesses have the information that they need to most effectively utilize AI to bolster their entrepreneurship.”