# Understanding the Algorithmic Accountability Act of 2022

This bill would require large companies that use artificial intelligence and automated decision-making systems to study and report on how those systems affect people's lives. Think of it as a transparency and safety requirement for the algorithms that increasingly make important decisions about us.

The bill focuses on what it calls "critical decisions"—the kinds of choices that really matter to your life. These include decisions about whether you get a job, a loan, housing, healthcare, education, or access to utilities like internet or electricity. If a company uses an automated system (like an AI algorithm) to help make these kinds of decisions, and the company is large enough, they would have to conduct ongoing studies to understand whether their system is treating people fairly and what negative impacts it might be causing. They'd need to document their findings and submit reports to the Federal Trade Commission annually.

The rules would apply mainly to bigger companies—those with over $50 million in annual revenue or more than a million customers' information in their databases. Smaller companies that develop AI systems specifically for larger companies to use would also be covered if they meet certain size thresholds. Companies would need to keep detailed records of their impact assessments for years and would be required to try to fix any problems their systems cause. The bill also requires companies to consult with outside experts, civil rights advocates, and affected communities when evaluating their systems, rather than just studying them internally.

The Federal Trade Commission would have two years to write the specific rules explaining exactly what companies need to do, with input from technology experts, academics, and civil rights groups. Violating these rules would be illegal, and the FTC could take enforcement action against companies that don't comply.

Algorithmic Accountability Act of 2022

Clarke, Yvette D.

Algorithmic Accountability Act of 2022 This bill requires certain businesses that use automated decision systems to make critical decisions to study and report about the impact of those systems on consumers. Critical decisions include those that have a significant effect on a consumer's life such as the cost or availability of health care, housing, educational opportunities, or financial services. The Federal Trade Commission (FTC), in consultation with relevant stakeholders, must issue regulations to implement the bill. The bill provides for enforcement by the FTC and specified state officials. Further, the bill establishes a Bureau of Technology to advise the FTC about the technological aspects of its functions.