FY2026 NDAA, Section 1532 ("Guidance and prohibition on use of certain artificial intelligence")

Summary

Require the Secretary of Defense to exclude and remove covered artificial intelligence from Department of Defense (DOD) systems and devices within 30 days of the enactment of this Act by issuing a DOD-wide guidance.

Require contractors to refrain from using covered artificial intelligence in contracts with the Department of Defense, unless a waiver applies.

Allow the Secretary of Defense to issue waivers on a case-by-case basis for scientifically valid research, evaluations, national security testing, counterterrorism, and mission-critical functions, while also requiring risk mitigation steps.

Define "covered artificial intelligence" as AI developed by Chinese company DeepSeek or High Flyer and entities associated with High Flyer.

Classify entities on specific lists or subject to foreign influence as "covered artificial intelligence companies."

Specify the meaning of "artificial intelligence" by referencing existing federal definitions.

Requires the Secretary of Defense and contractors to exclude and prohibit the use of certain artificial intelligence systems in defense systems and contracts based on national security risk determinations, and directs department-wide governance guidance for such exclusions.

SEC. 1532. GUIDANCE AND PROHIBITION ON USE OF CERTAIN ARTIFICIAL INTELLIGENCE. (a) Guidance and Prohibitions.-- (1) Exclusion and removal from department systems and devices.--Except as provided in subsection (b), not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall require the exclusion and removal of covered artificial intelligence from the systems and devices of the Department of Defense. (2) Consideration of guidance for department systems and devices.--Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall consider issuing Department of Defense-wide guidance to exclude and remove from systems and devices of the Department artificial intelligence developed by a covered artificial intelligence company which the Secretary determines poses a risk to national security. (3) Prohibition for contractors.-- (A) Use of covered artificial intelligence.--Except as provided in subsection (b), not later than 30 days after the date of enactment of this Act, no contractor may, during the period of performance of such contractor under a contract with the Department of Defense, use covered artificial intelligence with respect to the performance of a contract with the Department. (B) Use of artificial intelligence developed by a covered artificial intelligence company.--Except as provided in subsection (b), if the Secretary of Defense issues guidance described in paragraph (2) with respect to an artificial intelligence described in such paragraph, no contractor may, during the period of performance of such contractor under a contract with the Department of Defense, use such artificial intelligence with respect to the performance of a contract with the Department.

Allows the Secretary of Defense to grant case-by-case waivers permitting otherwise prohibited use of covered artificial intelligence for research, national security, military, or mission-critical purposes, and to take steps to mitigate risks arising from such waivers.

(b) Waiver.-- (1) In general.--The Secretary of Defense may waive a prohibition under subsection (a), on a case-by-case basis, if the Secretary determines that the waiver is necessary-- (A) for the purpose of scientifically valid research (as defined in section 102 of the Education Sciences Reform Act of 2002 (20 U.S.C. 9501)); (B) for the purpose of evaluation, training, testing, or other analysis needed for national security; (C) for the purpose of conducting counter terrorism, counterintelligence, or other operational military activities supporting national security; or (D) for the purpose of fulfilling mission critical functions. (2) Mitigation of risks.--If the Secretary of Defense issues a waiver pursuant to paragraph (1), the Secretary shall take such steps as the Secretary considers necessary to mitigate any risks due to the issuance of the waiver.

Defines “artificial intelligence,” “covered artificial intelligence,” and “covered artificial intelligence companies,” including AI developed by specified foreign-linked entities and entities subject to foreign ownership or control.

(c) Definitions.--In this section: (1) The term ``artificial intelligence'' has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401) and includes the systems and techniques described in paragraphs (1) through (5) of section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 U.S.C. 4061 note prec.). (2) The term ``covered artificial intelligence'' means-- (A) any artificial intelligence, or successor artificial intelligence, developed by the Chinese company DeepSeek; or (B) any artificial intelligence, or successor artificial intelligence, developed by High Flyer or an entity owned by, funded by, or supported by High Flyer or an entity with respect to which High Flyer directly or indirectly owns at least a 20 percent stake. (3) The term ``covered nation'' has the meaning given such term in section 4872 of title 10, United States Code. (4) The term ``covered artificial intelligence company'' means an entity that produces or provides artificial intelligence models or applications and-- (A) is included on-- (i) the Consolidated Screening List maintained by the International Trade Administration of the Department of Commerce; or (ii) the civil-military fusion list maintained under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 10 U.S.C. 113 note); (B) is domiciled in a covered nation; or (C) is subject to unmitigated foreign ownership, control, or influence by a covered nation, as determined by the Secretary of Defense in accordance with the National Industrial Security Program or any successor to such program.