UPDATE – JUNE 2025: Reps. Anna Eshoo (D-CA) and Don Beyer (D-VA) introduced the AI Foundation Model Transparency Act in December 2023. As of mid-2025, the bill remains in committee and has not advanced to a vote in the U.S. House. The Act empowers the FTC to mandate transparency disclosures for large-scale AI foundation models. Training data, model limitations, and copyright compliance would be the focus.
ORIGINAL NEWS STORY:
Proposed AI Transparency Act Introduced by U.S. Representatives
U.S. Representatives Anna Eshoo of California and Don Beyer of Virginia introduced the AI Foundation Model Transparency Act. The Act targets AI foundation models, specifically those trained on broad data with over one billion parameters. It would be applicable across various contexts like text, image, and video.
Under the proposed legislation, the Federal Trade Commission (FTC) would play a pivotal role. They would set and establish standards, requiring covered entities to disclose specific information about AI foundation models. The Act seeks to address concerns related to copyright infringement and potential harms stemming from inaccurate or biased outputs.
The Act requires covered entities to submit specific information to be made publicly available. This includes details about training data sources, module documentation, data collection during use, and model limitations. Crucial aspects such as the source and composition of training data, labeling processes, model versioning, alignment with technical standards, benchmarks, limitations, and computational power used will be covered.
The FTC enforces the regulations outlined in the Act. With violations considered unfair or deceptive practices under the FTC Act. The Act’s requirements extend to common carriers, nonprofits, and entities over which the FTC has authority, provided they offer foundation models surpassing monthly use or output thresholds.
While the FTC retains the flexibility to adjust these thresholds as needed. The Act gives the FTC two years to report to Congress and an annual update requirement for standards has been instituted. The introduction of the AI Foundation Model Transparency Act reflects a significant step toward establishing a framework for transparency and accountability in the rapidly evolving field of artificial intelligence.
Need Help?
Therefore, you might be curious how this potential bill, and other bills in the U.S. and around the globe could impact your company. Don’t hesitate to contact BABL AI. One of their audit experts can offer valuable guidance and support.
