FY2026 NDAA, Section 1533 ("Artificial intelligence model assessment and oversight")

Summary

Directs Secretary of Defense to create a Cross-Functional Team within the Department of Defense to oversee AI model assessment and governance, headed by the Chief Digital and Artificial Intelligence Officer.

Requires the Team to create a standardized assessment framework comprising performance standards, testing procedures etc, and governance structure for AI models used by the Department. Duties also include developing guidelines, assessment levels based on risk, and collaboration mechanisms for AI models.

Mandates inclusion of representatives from various defense branches and commands to ensure comprehensive oversight.

Instructs the Secretary of Defense to designate functional leads for AI applications, taking into account expertise and capability to set standards.

Obligates the assessment of all major AI systems using this framework by specific deadlines.

Specifies the termination of the Cross-Functional Team by December 31, 2030, with a transition plan to a successor entity within the Department.

Requires periodic congressional briefings on progress and activities related to these initiatives, and reports by Secretary of Defense after the termination.

Requires the Secretary of Defense to establish a Cross-Functional Team to develop an assessment framework and governance structure for evaluation of AI models deployed by the Department of Defense.

SEC. 1533. ARTIFICIAL INTELLIGENCE MODEL ASSESSMENT AND OVERSIGHT. (a) Cross-functional Team for Artificial Intelligence Model Assessment and Oversight.-- (1) Establishment.--The Secretary of Defense shall, in accordance with section 911 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 10 U.S.C. 111 note), establish a cross-functional team for artificial intelligence model assessment and oversight (in this section referred to as the ``Cross-Functional Team''). (2) Purpose.--The Cross-Functional Team shall develop a standardized assessment framework and governance structure to facilitate the evaluation of, collaboration on, and enablement of the rapid development or procurement of artificial intelligence models employed by the Department of Defense.

Designates the Chief Digital and Artificial Intelligence Officer as head of the cross-functional team and requires the Secretary of Defense to include representatives from specified Department of Defense offices, services, and commands.

(3) Composition.-- (A) Leadership.--The Chief Digital and Artificial Intelligence Officer of the Department of Defense shall be the head of the Cross-Functional Team. (B) Membership.--The Secretary of Defense shall ensure that the Cross-Functional Team includes representatives from-- (i) the Office of the Chief Information Officer of the Department of Defense; (ii) the chief artificial intelligence officers of the military departments, or in the absence of such position, the individual responsible for leading artificial intelligence efforts within each military department; (iii) the chief information officers of the military departments; (iv) the chief artificial intelligence officers of the combatant commands and the Joint Staff, or in the absence of such position, the individuals responsible for leading artificial intelligence efforts within each such command and the Joint Staff; (v) the chief information officers of the combatant commands and the Joint Staff, or in the absence of such position, the individuals responsible for leading information technology efforts within each such command and the Joint Staff; (vi) the Under Secretary of Defense for Research and Engineering; (vii) the service acquisition executive of each of the military departments; and (viii) such other components as the Secretary determines appropriate.

Requires the Cross-Functional Team to develop assessment frameworks for current AI models, Department of Defense (DOD)–wide guidelines for future models, governance structures, and collaboration mechanisms for the development, testing, and assessment of AI models used by the DOD.

(4) Duties.--The Cross-Functional Team shall do the following: (A) Develop a standardized assessment framework for artificial intelligence models currently used by the Department of Defense. (B) Establish Department of Defense-wide guidelines for evaluating future artificial intelligence models being considered for use by the Department. (C) Develop governance structures for the development, assessment, testing, and deployment of artificial intelligence models. (D) Identify appropriate assessment levels for the performance of artificial intelligence models based on ultimate use case-based risk. (E) Establish mechanisms for collaboration between components of the Department of Defense regarding the development, testing, assessment, and deployment of artificial intelligence models. (F) Develop processes for the submission, review, and approval of use cases for artificial intelligence models against military and non-military activities of the Department of Defense.

Specifies mandatory elements of the Department of Defense’s standardized AI assessment framework, including performance standards, testing and validation procedures, ethical and security compliance requirements, and use of external agency assessments.

(5) Framework content.--The standardized assessment framework required by paragraph (2) shall include-- (A) standards for the performance of artificial intelligence models; (B) requirements for documentation of the development artificial intelligence models; (C) procedures for testing artificial intelligence models; (D) compliance with ethical principles regarding the use of artificial intelligence models; (E) methodologies for assessing artificial intelligence models and time periods for validating artificial intelligence models; (F) security requirements and compliance requirements, including the Federal Risk and Authorization Management Program established under section 3608 of title 44, United States Code; (G) procedures for the Department of Defense to use assessments of artificial intelligence models conducted by Executive agencies other than the Department to fulfill requirements under the framework; and (H) such other elements as the Cross-Functional Team determines appropriate.

Requires the Secretary of Defense to designate Department of Defense organizations as functional leads for AI applications based on expertise and capacity, and assigns the Chief Digital and Artificial Intelligence Officer responsibility for Department-wide guidance on AI business systems and commercial AI models.

(b) Functional Leads for Artificial Intelligence Application.-- (1) Designation.--The Secretary of Defense shall designate such organizations of the Department of Defense as the Secretary considers appropriate to serve as functional leads for artificial intelligence applications used by the Department. (2) Selection criteria.--In designating functional leads under paragraph (1), the Secretary of Defense shall consider-- (A) subject matter expertise; (B) equities in the functional area; and (C) capability to establish assessment standards. (3) CDAO responsibilities.--The Chief Digital and Artificial Intelligence Officer of the Department of Defense shall-- (A) serve as the functional lead for business systems of the Department of Defense using artificial intelligence models; and (B) provide Department-wide guidance on commercial artificial intelligence models.

Requires the Secretary of Defense to assess all major AI systems using a standardized framework by specified deadlines and provide briefings on progress to the congressional defense committees.

(c) Assessments of Major Artificial Intelligence Systems.--The Secretary of Defense shall assess all major artificial intelligence systems using the standard assessment framework developed under subsection (a)(2). (d) Administration.-- (1) In general.--In carrying out this section, the Secretary shall ensure the following: (A) The Cross-Functional Team is established in accordance with subsection (a) on or before June 1, 2026. (B) The functional leads for artificial intelligence application are designated in accordance with subsection (b) on or before January 1, 2027. (C) The Cross-Function Team completes development of the standardized assessment framework and governance structure required by subsection (a)(2) on or before June 1, 2027. (D) The assessment of major artificial intelligence systems required by subsection (c) is completed on or before January 1, 2028. (2) Congressional briefing.--Not later than 30 days after the completion of an activity described in subparagraphs (A) through (D) of paragraph (1), the Secretary of Defense shall provide the congressional defense committees a briefing on the status of the Secretary in carrying out this section.

Terminates the Cross-Functional Team by 2030 and requires succession planning and reporting by the Secretary of Defense.

(e) Sunset and Transition.-- (1) Sunset.--The Cross-Functional Team shall terminate on December 31, 2030. (2) Transition.--Not later than June 30, 2030, the Secretary of Defense shall designate an element of the Department of Defense to succeed the Cross-Functional Team and develop a plan to transfer the duties of the Cross-Functional Team described in subsection (a)(4) to such successor element. (3) Report on activities of successor organization.--Not later than one year after the date on which the Cross-Functional Team is terminated, and not less frequently than once each year thereafter until the date that is three years after the date on which the Cross-Functional Team is terminated, the Secretary of Defense shall submit to the congressional defense committees a report on the activities of the element of the Department of Defense to which the duties of the Cross-Functional Team were transferred.

Defines "artificial intelligence", "functional area" among others like "major artificial intelligence system" which means AI impacting high-impact information systems or involving 500+ Department of Defense (DOD) users and used for functions like military operations, business operations etc.

(f) Definitions.--In this section: (1) The term ``artificial intelligence'' has the meaning given in section 238(g) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (Public Law 115-232; 10 U.S.C. note prec. 4061). (2) The term ``functional area'' refers to a specialized functional, operational, or subject-matter area within the Department of Defense. (3)(A) The term ``major artificial intelligence system'' means an artificial intelligence system of the Department of Defense that-- (i) is integrated with, or materially affects the operation of, an information system that--

(I) is categorized as high-impact under section 3554 of title 44, United States Code; or (II) if compromised, would have a serious adverse effect on organizational operations, organizational assets, or individuals;

(ii) is used by not fewer than 500 users of the Department annually; and (iii) is employed in support of--

(I) military operations, training, or planning activities; or (II) functions of the Department, including business operations, human resources management, administrative functions, or strategic planning activities.

(B) The term ``major artificial intelligence system'' does not include an artificial intelligence system used solely for research, development, testing, or evaluation that has not been deployed for operational use. (4) The terms ``military department'' and ``service acquisition executive'' have the meanings given such terms, respectively, in section 101(a) of title 10, United States Code.