National Defense Authorization Act for Fiscal Year 2026, Section 1007 ("Use of technology using artificial intelligence to facilitate audit of the financial statements of the Department of Defense for fiscal year 2026")

• Authority: United States Congress
• Parent authority: Federal government
• Jurisdiction: United States
• Collections: NDAA provisions;U.S. federal laws;FY2026 NDAA
• Most recent activity: Enacted
• Most recent activity date: 2025-12-18

Risk subdomain coverage

Minimal coverage — Brief mention but no specific mitigations, recommendations or governance measures relating to the risk subdomain are described.

• AI system security vulnerabilities

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

This document has minimal risk domain coverage, with only implicit mention of AI system security (2.2) through the context of financial audit systems. The document is primarily procedural, focusing on encouraging AI adoption for financial audits rather than addressing AI risks or harms. No other risk domains are substantively covered.

Sector coverage

Good coverage — Comprehensive governance measures or mitigations with clear procedures relating to the sector are explicitly described.

• National Security

All other sectors had no coverage in this document.

Sectors Summary

This document exclusively governs the Public Administration sector, specifically National Security operations within the Department of Defense. It mandates AI adoption for financial auditing and management within DoD operations.

Legislative Status

Hard Law

Legislative Status Summary

This is a section of the National Defense Authorization Act, which is binding federal legislation enacted by the U.S. Congress. While the specific provision uses encouraging language ('shall encourage'), it establishes mandatory oversight responsibilities ('shall oversee') for designated officials within the Department of Defense, making it legally binding hard law with enforcement through administrative channels.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: United States Congress
• Summary: The document is identified as a section of the National Defense Authorization Act for Fiscal Year 2026, which is federal legislation enacted by the United States Congress.

Target

• Entity Types: AI_Deployer, AI_Governance_Actor
• Entities: Department of Defense; Secretary of Defense; Secretary of the Army; Secretary of the Navy; Secretary of the Air Force; Chief Digital and Artificial Intelligence Office
• Summary: The document explicitly targets Department of Defense entities and their leadership, requiring them to encourage and oversee AI adoption for financial auditing purposes. These entities are both governance actors (as government agencies) and AI deployers (as they will be implementing AI systems).

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: Director of the Chief Digital and Artificial Intelligence Office; Under Secretary of Defense for Research and Engineering; Inspector General of the Department of Defense
• Summary: The document designates the Director of the Chief Digital and AI Office, in coordination with the Under Secretary and Inspector General, to oversee implementation and adoption of AI technologies, establishing clear enforcement and oversight authority.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: Director of the Chief Digital and Artificial Intelligence Office; Inspector General of the Department of Defense; Under Secretary of Defense for Research and Engineering
• Summary: The same entities designated for enforcement are also responsible for monitoring through their oversight role. The Inspector General's involvement particularly suggests monitoring and evaluation functions.

AI Lifecycle Stages

Lifecycle stages covered by the documents, as defined in the OECD Framework for the Classification of AI Systems

• Plan and Design
• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document primarily addresses the Deploy and Operate and Monitor stages of the AI lifecycle, focusing on adoption and oversight of AI technologies for financial auditing. There is implicit coverage of Plan and Design through the coordination requirements, but no explicit mention of data collection, model building, or verification stages.

Technical Scope

Terms relating to technical scope that are mentioned or implicitly referenced in the document

• AI Models
• AI Systems
• Task-specific AI

Technical Scope Summary

The document explicitly mentions 'artificial intelligence' and 'machine learning' technologies but does not define these terms or specify particular types of AI systems. It refers to AI/ML in the context of financial management and audit systems. No specific technical thresholds, model types, or architectural details are mentioned.