Outbound Investment Transparency Act of 2023

• Authority: United States Congress
• Parent authority: Federal government
• Jurisdiction: United States
• Collections: U.S. federal laws
• Most recent activity: Defunct
• Most recent activity date: 2025-01-03

Risk subdomain coverage

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

• Competitive dynamics
• Governance failure

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

• AI system security vulnerabilities
• Disinformation, surveillance, and influence at scale
• Cyberattacks, weapon development or use
• AI possessing dangerous capabilities

All other risk subdomains had no coverage in this document.

Risk Coverage Summary

The document has minimal to good coverage of approximately 5-6 subdomains, with primary focus on malicious actors (4.1, 4.2), competitive dynamics (6.4), governance failure (6.5), and AI system security (2.2). Coverage is concentrated in national security, strategic competition, and governance domains related to outbound investment screening.

Sector coverage

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

• Agriculture, Mining, Construction & Manufacturing
• Information
• Scientific Research & Development Services
• National Security

All other sectors had no coverage in this document.

Sectors Summary

The document governs U.S. investment activities across multiple high-technology sectors including Information (AI, satellite communications), Scientific Research and Development Services (AI research, quantum technology), and Manufacturing (semiconductors, hypersonics, laser systems). The governance applies to investments in these sectors when conducted with entities in countries of concern.

Legislative Status

Hard Law

Legislative Status Summary

This is a binding legislative act passed by the United States Congress that amends the Defense Production Act of 1950, establishing mandatory notification requirements for U.S. persons engaging in covered activities with countries of concern, with explicit enforcement mechanisms including penalties and judicial relief.

Actors

Proposer

• Entity Types: AI_Governance_Actor
• Entities: United States Congress; Senator John Cornyn; Senator Bob Casey; Committee on Banking, Housing, and Urban Affairs
• Summary: The document was introduced in the United States Senate by Mr. Cornyn and Mr. Casey and referred to the Committee on Banking, Housing, and Urban Affairs, indicating Congressional authorship and proposal.

Target

• Entity Types: AI_Developer, AI_Deployer, AI_Infrastructure_Provider
• Entities: United States persons engaging in covered activities with covered foreign entities in countries of concern
• Summary: The Act targets U.S. persons (individuals and entities organized under U.S. law) who engage in investment activities in AI and other sensitive sectors with entities in countries of concern, requiring them to notify the Treasury of such activities.

Enforcer

• Entity Types: AI_Governance_Actor
• Entities: Secretary of the Treasury; President of the United States; Attorney General; District courts of the United States
• Summary: The Secretary of the Treasury is designated as the primary enforcement authority, with the President delegating authorities and the Attorney General empowered to seek judicial relief in district courts for enforcement.

Monitor

• Entity Types: AI_Governance_Actor
• Entities: Secretary of the Treasury; Secretary of Commerce; Secretary of State; appropriate congressional committees (Committee on Armed Services, Committee on Finance, Committee on Banking, Housing, and Urban Affairs, Select Committee on Intelligence, Committee on Foreign Relations of the Senate; Committee on Armed Services, Committee on Ways and Means, Committee on Financial Services, Permanent Select Committee on Intelligence, Committee on Foreign Affairs of the House of Representatives)
• Summary: The Secretary of the Treasury is required to monitor covered activities through notification processes and submit annual reports to congressional committees. The Secretary also coordinates with Commerce and consults with other agencies for monitoring purposes.

AI Lifecycle Stages

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

• Plan and Design
• Build and Use Model
• Verify and Validate
• Deploy
• Operate and Monitor

AI Lifecycle Summary

The document does not focus on specific AI lifecycle stages but rather on investment activities across all stages of AI development and deployment in covered sectors. It addresses investment screening that could apply to any lifecycle stage from design through operation.

Technical Scope

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

No technical scope terms identified.

Technical Scope Summary

The document explicitly mentions 'Artificial intelligence' as one of the covered sectors but does not provide definitions or distinctions between AI models, AI systems, frontier AI, general purpose AI, or other technical AI categories. It does not reference compute thresholds or open-weight models.