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Senator Joni Ernst Exposes SBA’s Pursuit of Costly AI Technology and Lack of IT Security
In a scathing letter to Small Business Administration (SBA) Administrator Guzman, U.S. Senator Joni Ernst (R-Iowa) has called out the agency for its questionable use of Artificial Intelligence (AI) technology. Despite publicly touting its AI tools, the SBA has reported that it has not actually used AI, raising concerns about the agency’s priorities and investments.
Ernst highlighted the fact that the SBA has allocated a significant portion of its $22 million IT Working Capital Fund (IT WCF) towards AI projects, while many SBA offices and programs lack basic IT security measures. This discrepancy has put Americans’ personal information at risk, as the agency continues to fall short of federal IT standards and faces significant security risks in its systems.
The Senator emphasized the importance of accountability and transparency in how the SBA is utilizing its IT WCF budget, urging Administrator Guzman to provide a full accounting of the agency’s investments. Ernst pointed out the need for the SBA to prioritize modernizing its IT infrastructure and ensuring that funds are used for authorized purposes only.
Furthermore, Ernst criticized the SBA for not complying with Executive Order 13960, which directs federal agencies to list where and how they use AI. Despite the agency’s claims of using AI tools for fraud review and advanced data analytics, it has failed to provide transparency on its actual use of AI technology.
The letter from Senator Ernst serves as a wake-up call for the SBA to improve its IT practices and prioritize the protection of sensitive information. As the agency faces scrutiny for its handling of IT investments and security risks, the call for accountability and transparency grows louder.
