U.S. House Delivers Sweeping AI Report: 10 Biggest Takeaways for Employers

The U.S. House Bipartisan AI Task Force just released a groundbreaking report yesterday that outlines key challenges and opportunities for AI adoption across all sectors. As artificial intelligence reshapes workplaces, employers should act now to stay one step ahead of this exciting but turbulent period. Below are our 10 most significant takeaways from the report, with proactive steps for employers to stay ahead of the curve.

Quick Background

The bipartisan House report is the culmination of a process that spanned more than a year and saw lawmakers engage with tech leaders, employers, businesses, academics, legal scholars, and AI experts. The 253-page document contains a series of recommendations for Congress to take in the near future, along with a series of best practices for private businesses to consider. It was quickly hailed by the U.S. Chamber of Commerce as striking the right balance between advocating for risk-based AI governance and encouraging innovation.

Top 10 Takeaways for Employers

You can peruse the entire report for yourself, but here are the 10 biggest takeaways for employers.

1. AI Is Reshaping the Workplace

The report acknowledges that AI systems are rapidly transforming how businesses operate, driving efficiency and innovation. From automating routine tasks to enabling predictive analytics, AI is becoming a staple of modern workplaces. However, its integration brings challenges, including workforce displacement and skill gaps.

Action Item: Evaluate current workflows and identify opportunities for AI integration. Make sure you review our list of questions to ask AI vendors before investing in new products. Invest in upskilling your workforce to align with new AI-enabled roles.

2. Heightened Data Privacy Risks

AI systems often require massive amounts of data to function effectively, increasing the risk of privacy breaches. The Task Force highlights that businesses must adopt “privacy-by-design” practices to secure sensitive employee and customer information.

Action Item: Conduct a privacy audit to ensure AI systems comply with state and federal privacy laws. Implement robust data governance frameworks to protect against unauthorized access and breaches. Contact our Privacy and Cyber Team if you have questions or need assistance.

3. Bridging the Talent Gap

The U.S. faces a significant shortage of AI-skilled professionals. Without proper training and development, employers risk falling behind in the race for AI innovation.

Action Item: Partner with educational institutions or launch internal training programs to boost AI literacy and STEM skills within your organization. Take stock of the new H-1B visa rules that are set to take effect next month if you need foreign nationals to assist your work.

4. Risk Management Frameworks Are Essential

AI introduces unique risks, from cybersecurity vulnerabilities to flawed decision-making. The Task Force emphasizes the importance of adopting AI risk management frameworks, such as the NIST AI Risk Management Framework, to mitigate these threats.

Action Item: Develop and implement a comprehensive AI governance strategy. All companies should have appropriate governance and risk management policies and practices. The key is to develop the governance system, follow the system, and document your efforts. Regularly audit AI systems for compliance, accuracy, and resilience against potential threats. Review this 10-step plan inspired by Congressman Ted Lieu's talk at an FP AI Conference.

5. Sector-Specific Regulations Are Coming

The report highlights that AI regulations will often be tailored to specific industries. Employers in sectors like healthcare, finance, and manufacturing must prepare for evolving compliance requirements.

Action Item: Monitor regulatory updates specific to your industry. Engage with legal and compliance teams to ensure adherence to emerging AI standards.

6. Transparency Builds Trust

Transparency in how AI systems are used is crucial, especially when decisions impact employees or customers. The Task Force underscores the need for clear communication about AI applications and outcomes.

Action Item: Develop policies that explain the role of AI in decision-making. Provide employees and customers with transparent, accessible information about how AI impacts them. Be able to understand and explain what criteria AI systems use to make their decisions and how these systems derive their outputs. And comply with the state laws (such as the ones in Colorado and Illinois) that will soon require employer disclosures.

7. Small Businesses Face Unique Challenges

Many small businesses lack the resources and expertise to adopt AI effectively. The Task Force recommends targeted support to help these businesses leverage AI's benefits.

Action Item: Explore federal programs and partnerships designed to support small business AI adoption. Invest in scalable AI tools that align with your organization’s specific needs.

8. Combatting AI Bias in Decision-Making

Improper use of AI can lead to biased outcomes, particularly in hiring, promotions, and performance evaluations. Employers must ensure AI systems are designed to mitigate discrimination and uphold civil rights.

Action Item: Implement regular bias audits of AI tools. Ensure humans are in the loop for oversight in decision-making processes that significantly impact employees. Stay up to speed on the latest attacks made against employers using AI decision-making tools so you can avoid similar problems.

9. Navigating Generative AI Risks

Generative AI tools can create convincing synthetic content, from deepfakes to manipulated images. These tools present risks to brand reputation and information integrity.

Action Item: Educate employees on the risks of synthetic content and implement verification tools to authenticate AI-generated material. Develop policies to address the use and misuse of AI-generated content. Get up to speed on our guides to help you spot deepfakes and avoid AI-fueled deepfake attacks.

10. Balancing Automation with Workforce Support

AI-driven automation can streamline processes but may displace employees or create anxiety around job security. Employers must balance efficiency gains with workforce morale.

Action Item: Communicate openly about automation plans and involve employees in the transition process. Provide reskilling opportunities for roles impacted by AI-driven automation.

What’s Next?

The report doesn’t change any aspect of federal law, and all recommendations will need to be carried out by lawmakers or agency regulators in order for them to create guardrails or obligations. The incoming Trump administration has already promised to repeal the Biden administration’s Executive Order on AI and take a different approach when it comes to AI regulation, so we don’t expect any restrictive laws or regulations to take effect at the federal level in the near future. We do expect state lawmakers to take action in 2025 to harness employers’ use of AI, so stay tuned for updates in the new year.

Conclusion

The U.S. House AI Task Force report is a wake-up call for employers. AI promises to revolutionize workplaces, but its adoption must be thoughtful and strategic. We will continue to provide the most up-to-date information on AI-related developments, so make sure you are subscribed to Fisher Phillips’ Insight System. If you have questions, contact your Fisher Phillips attorney, the authors of this Insight, or any attorney in our AI, Data, and Analytics Practice Group or Government Relations Practice Group.