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(Editor’s Note: This article was first published by our friends at Just Security and is the third in a series that is diving into the foundational barriers to the broad integration of AI in the IC – culture, budget, acquisition, risk, and oversight.)

OPINION — As I have written earlier, there is widespread bipartisan support for radically improving the nation’s ability to take advantage of artificial intelligence (AI). For the Intelligence Community (IC), that means using AI to more quickly, easily, and accurately analyze increasing volumes of data to produce critical foreign intelligence that can warn of and help defuse national security threats, among other things. To do that, the IC will have to partner closely with the private sector, where significant AI development occurs. But despite the billions of dollars that may ultimately flow toward this goal, there are basic hurdles the IC still must overcome to successfully transition and integrate AI into the community at speed and scale.

Among the top hurdles are the U.S. government’s slow, inflexible, and complex budget and acquisition processes. The IC’s rigid budget process follows the standard three-year cycle for the government, which means it takes years to incorporate a new program and requires confident forecasting of the future. Once a program overcomes the necessary hurdles to be included in a budget, it must follow a complex sequence of regulations to issue and manage a contract for the actual goods or services needed. These budget and acquisition processes are often considered separately as they are distinct, but I treat them together because they are closely related and inextricably intertwined in terms of the government’s purchasing of technology.

Importantly, these processes were not intended to obstruct progress; they were designed to ensure cautious and responsible spending, and for good reason. Congress, with its power of the purse, and the Office of Management and Budget (OMB), as the executive branch’s chief budget authority, have the solemn duty to ensure wise and careful use of taxpayer dollars. And their roles in this regard are vital to the U.S. government’s ability to function.

Unfortunately, despite the best of intentions, as noted by some in Congress itself, the budget process has become so “cumbersome, frustrating, and ineffective” that it has weakened the power of the purse and Congress’ capacity to govern. And when complicated acquisition processes are layered on top of the budget process, the result is a spider web of confusion and difficulty for anyone trying to navigate them.

The Need for Speed … and Flexibility and Simplicity

As currently constructed, government budget and acquisition processes cause numerous inefficiencies for the purchase of AI capabilities, negatively impacting three critical areas in particular: speed, flexibility, and simplicity. When it comes to speed and flexibility, the following difficulties jump out:

• The executive branch has a methodical and deliberate three-year budget cycle that calls for defined and steady requirements at the beginning of the cycle. Changing the requirements at any point along the way is difficult and time-consuming.
• The IC’s budgeting processes require that IC spending fit into a series of discrete sequential steps, represented by budget categories like research, development, procurement, or sustainment. Funds are not quickly or easily spent across these categories.
• Most appropriations expire at the end of each fiscal year, which means programs must develop early on, and precisely execute, detailed spending plans or lose the unspent funds at the end of one year.
• Government agencies expend significant time creating detailed Statements of Work (SOWs) that describe contract requirements. Standard contract vehicles do not support evolving requirements, and companies are evaluated over the life of the contract based on strict compliance with the original SOW created years earlier.

These rules make sense in the abstract and result from well-intentioned attempts to buy down the risk of loss or failure and promote accountability and transparency. They require the customer to know with clarity and certainty the solution it seeks in advance of investment and they narrowly limit the customer’s ability to change the plan or hastily implement it. These rules are not unreasonably problematic for the purchase of items like satellites or airplanes, the requirements for which probably should not and will not significantly change over the course of many years.

However, because AI technology is still maturing and the capabilities themselves are always adapting, developing, and adding new functionality, the rules above have become major obstacles to the quick integration of AI across the IC. First, AI requirements defined with specificity years in advance of acquisition – whether in the budget or in a statement of work – are obsolete by the time the technology is delivered. Second, as AI evolves there is often not a clear delineation between research, development, procurement, and sustainment of the technology – it continuously flows back and forth across these categories in very compressed timelines. Third, it is difficult to predict the timing of AI breakthroughs, related new requirements, and funding impacts, so money might not be spent as quickly as expected and could be lost at the end of the fiscal year. Taken together, these processes are inefficient and disruptive, cause confusion and delay, and discourage engagement from small businesses, which have neither the time nor the resources to wait years to complete a contract or to navigate laborious, uncertain processes.

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Simply put, modern practices for fielding AI have outpaced the IC’s decades-old approach to budgeting and acquisition. That AI solutions are constantly evolving, learning, and improving both undermines the IC’s ability to prescribe a specific solution and, in fact, incentivizes the IC to allow the solution to evolve with the technology. The lack of flexibility and speed in how the IC manages and spends money and acquires goods and services is a core problem when it comes to fully incorporating AI into the IC’s toolkit.

Even while we introduce more speed and agility into these processes, however, the government must continue to ensure careful, intentional, and appropriate spending of taxpayer dollars. The adoption of an IC risk framework and modest changes to congressional oversight engagements, which I address in upcoming articles, will help regulate these AI activities in the spirit of the original intent of the budget and acquisition rules.

As for the lack of simplicity, the individually complex budget and acquisition rules are together a labyrinth of requirements, regulations, and processes that even long-time professionals have trouble navigating. In addition:

• There is no quick or simple way for practitioners to keep current with frequent changes in acquisition rules.
• The IC has a distributed approach that allows each element to use its various acquisition authorities independently rather than cohesively, increasing confusion across agency lines.
• Despite the many federal acquisition courses aimed at demystifying the process, there is little connection among educational programs, no clear path for IC officers to participate, and no reward for doing so.

The complexity of the budget and acquisition rules compounds the problems with speed and flexibility, and as more flexibility is introduced to support AI integration, it is even more critical that acquisition professionals be knowledgeable and comfortable with the tools and levers they must use to appropriately manage and oversee contracts.

Impactful Solutions: A Target Rich Environment

Many of these problems are not new; indeed, they have been highlighted and studied often over the past few years in an effort to enable the Department of Defense (DOD) and the IC to more quickly and easily take advantage of emerging technology. But to date, DOD has made only modest gains and the IC is even further behind. While there are hundreds of reforms that could ease these difficulties, narrowing and prioritizing proposed solutions will have a more immediate impact. Moreover, significant change is more likely to be broadly embraced if the IC first proves its ability to successfully implement needed reforms on a smaller scale. The following actions by the executive and legislative branches – some tactical and some strategic – would be powerful steps to ease and speed the transition of AI capabilities into the IC.

Statements of Objectives

A small but important first step to deal with the slow and rigid acquisition process is to encourage the use of Statements of Objectives (SOO) instead of SOWs, when appropriate. As mentioned, SOWs set forth defined project activities, deliverables, requirements, and timelines, which are used to measure contractor progress and success. SOWs make sense when the government understands with precision exactly what is needed from the contractor and how it should be achieved.

SOOs, on the other hand, are more appropriate when the strategic outcome and objectives are clear, but the steps to achieve them are less so. They describe “what” without dictating “how,” thereby encouraging and empowering industry to propose innovative solutions. SOOs also create clarity about what is important to the government, leading companies to focus less on aggressively low pricing of specific requirements and more on meeting the ultimate outcomes in creative ways that align with a company’s strengths. This approach requires knowledgeable acquisition officers as part of the government team, as described below, to ensure the contract includes reasonable milestones and decision points to keep the budget within acceptable levels.

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New Authorities for the IC

Two new authorities would help the IC speed and scale its use of AI capabilities: Other Transaction Authority (OTA)  and Commercial Solutions Openings (CSO). Other Transaction Authority allows specific types of transactions to be completed outside of the traditional federal laws and regulations that apply to standard government procurement contracts, providing significantly more speed, flexibility, and accessibility than traditional contracts. While OTA is limited in scope and not a silver bullet for all acquisition problems, OTA has been used to good effect since 1990 by the Defense Advanced Research Projects Activity (DARPA), DOD’s over-the-horizon research and development organization, among others.

CSOs are a simplified and relatively quick solicitation method to award firm fixed price contracts up to $100 million. CSOs can be used to acquire innovative commercial items, technologies, or services that close capability gaps or provide technological advances through an open call for proposals that provide offerors the opportunity to respond with technical solutions of their own choosing to a broadly defined area of government interest. CSOs are considered competitively awarded regardless of how many offerors respond.

Both OTA and CSO authority should be immediately granted to the IC to improve the speed and flexibility with which the IC can acquire and transition AI into the IC.

Unclassified Sandbox

The predictive nature of the IC’s work and the need to forecast outcomes means the IC must be able to acquire AI at the point of need, aligned to the threat. Waiting several years to acquire AI undermines the IC’s ability to fulfill its purpose. But with speed comes added risk that new capabilities might fail. Therefore, the IC should create an isolated unclassified sandbox, not connected to operational systems, in which potential IC customers could test and evaluate new capabilities alongside developers in weeks-to-months, rather than years. Congress should provide the IC with the ability to purchase software quickly for test and evaluation purposes only to buy down the risk that a rapid acquisition would result in total failure. The sandbox process would allow the IC to test products, consider adjustments, and engage with developers early on, increasing the likelihood of success.

Single Appropriation for Software

DOD has a pilot program that funds software as a single budget item – allowing the same money to be used for research, production, operations, and sustainment – to improve and speed software’s unique development cycle. AI, being largely software, is an important beneficiary of this pilot. Despite much of the IC also being part of DOD, IC-specific activities do not fall within this pilot. Extending DOD’s pilot to the IC would not only speed the IC’s acquisition of AI, but it would also increase interoperability and compatibility of IC and DOD projects.

No-Year Funds

Congress should reconsider the annual expiration of funds as a control lever for AI. Congress already routinely provides no-year funding when it makes sense to do so. In the case of AI, no-year funds would allow the evolution of capabilities without arbitrary deadlines, drive more thoughtful spending throughout the lifecycle of the project, and eliminate the additional overhead required to manage the expiration of funds annually. Recognizing the longer-term nature of this proposal, however, the executive branch also must seek shorter-term solutions in the interim.

A less-preferable alternative is to seek two-year funding for AI. Congress has a long history of proposing biennial budgeting for all government activities. Even without a biennial budget, Congress has already provided nearly a quarter of the federal budget with two-year funding. While two-year funding is not a perfect answer in the context of AI, it would at a minimum discourage parties from rushing to outcomes or artificially burning through money at the end of the first fiscal year and would provide additional time to fulfill the contract. This is presumably why DOD recently created a new budget activity under their Research, Development, Test and Evaluation (RDT&E) category, which is typically available for two years, for “software and digital technology pilot programs.”

AI Technology Fund

Congress should establish an IC AI Technology Fund (AITF) to provide kick-starter funds for priority community AI efforts and enable more flexibility to get those projects off the ground. To be successful, the AITF must have no-year funds, appropriated as a single appropriation, without limits on usage throughout the acquisition lifecycle. The AITF’s flexibility and simplicity would incentivize increased engagement by small businesses, better allowing the IC to tap into the diversity of the marketplace, and would support and speed the delivery of priority AI capabilities to IC mission users.

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ICWERX  

To quickly take advantage of private sector AI efforts at scale, the IC must better understand the market and more easily engage directly with the private sector. To do so, the IC should create an ICWERX, modeled after AFWERX, an Air Force innovation organization that drives agile public-private sector collaboration to quickly leverage and develop cutting-edge technology for the Air Force. AFWERX aggressively uses innovative, flexible, and speedy procurement mechanisms like OTA and the Small Business Innovation Research and Small Business Technology Transfer programs (SBIR/STTR) to improve the acquisition process and encourage engagement from small businesses. AFWERX is staffed by acquisition and market research experts who are comfortable using those authorities and understand the market. While the IC’s needs are not identical, an ICWERX could serve as an accessible “front door” for prospective partners and vendors, and enable the IC to more quickly leverage and scale cutting-edge AI.

De-mystify Current Authorities

While there is much complaining about a lack of flexible authorities in the IC (and a real need for legal reform), there is flexibility in existing rules that has not been fully utilized. The IC has not prioritized the development or hiring of people with the necessary government acquisition and contracts expertise, so there are insufficient officers who know how to use the existing authorities and those who do are overworked and undervalued. The IC must redouble its efforts to increase its expertise in, and support the use of, these flexibilities in several ways.

First, the IC should create formal partnerships and increase engagement with existing U.S. government experts. The General Services Administration’s Technology Transformation Services (TTS) and FEDSIM, for example, work across the federal government to build innovative acquisition solutions and help agencies more quickly adopt AI. In addition, DOD’s Joint AI Center has built significant acquisition expertise that the IC must better leverage. The IC also should increase joint duty rotations in this area to better integrate and impart acquisition expertise across the IC.

Second, the IC must prioritize training and education of acquisition professionals. And while deep acquisition expertise is not necessary for everyone, it is important for lawyers, operators, technologists, and innovators to have a reasonable understanding of the acquisition rules, and the role they each play in getting to successful outcomes throughout the process. Collaboration and understanding across these professions and up and down the chain of command will result in more cohesive, speedy, and effective outcomes.

To that end, the Office of the Director of National Intelligence (ODNI) should work with the many existing government acquisition education programs, as well as the National Intelligence University, to develop paths for IC officers to grow their understanding of and ability to navigate and successfully use acquisition rules. The ODNI also should strengthen continuing education requirements and create incentive pay for acquisition professionals.

Third, the IC should prioritize and use direct hire authority to recruit experts in government acquisition, to include a mix of senior term-limited hires and junior permanent employees with room to grow and the opportunity for a long career in the IC. Such a strategy would allow the IC to quickly tackle the current AI acquisition challenges and build a bench of in-house expertise.

Finally, practitioners should have an easily accessible reference book to more quickly discover relevant authorities, understand how to use them, and find community experts. A few years ago, the ODNI led the creation of an IC Acquisition Playbook, which describes common IC acquisition authorities, practices, and usages. The ODNI should further develop and disseminate this Playbook as a quick win for the IC.

Incentivize Behavior

To encourage creative and innovative acquisition practices, as well as interdisciplinary collaboration, the IC must align incentives with desired outcomes and create in acquisition professionals a vested interest in the success of the contract. Acquisition officers today are often brought into projects only in transactional ways, when contracts must be completed or money must be obligated, for example. They are rarely engaged early as part of a project team, so they are not part of developing the solutions and have minimal investment in the project’s success. Reinforcing this, acquisition professionals are evaluated primarily on the amount of money they obligate by the end of the fiscal year, rather than on the success of a project.

Therefore, to start, project teams should be required to engage acquisition officers early and often, both to seek their advice and to ensure they have a good understanding of the project’s goals. In addition, evaluation standards for acquisition officers should incorporate effective engagement and collaboration with stakeholders, consideration of creative alternatives and options, and delivery of mission outcomes. If an officer uses innovative practices that fail, that officer also should be evaluated on what they learned from the experience that may inform future success.

Lastly, the ODNI should reinvigorate and highlight the IC acquisition awards to publicly reward desired behavior, and acquisition professionals should be included in IC mission team awards as a recognition of their impact on the ultimate success of the mission.

Conclusion

Between the government’s rigid budget and acquisition processes and confusion about how to apply them, there is very little ability for the IC to take advantage of a fast-moving field that produces new and updated technology daily. Tackling these issues through the handful of priority actions set forth above will begin to drive the critical shift away from the IC’s traditional, linear processes to the more dynamic approaches the IC needs to speed and transform the way it purchases, integrates, and manages the use of AI.

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The post AI and the IC: The Tangled Web of Budget and Acquisition appeared first on The Cipher Brief.

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Protesters thronged the streets of Australian cities on Saturday, demanding an end to what they called the “tyranny” and “oppression” of lockdowns, vaccine mandates, and the proposed expansion of the government’s pandemic powers.

In Melbourne, Sky News reporter Sophie Elsworth described “tens of thousands of people streaming through the streets.” The march came after a week of smaller protests aimed at Victoria Premier Dan Andrews’ controversial pandemic bill, which if approved by the state’s legislature would allow Andrews and Health Minister Martin Foley to declare an indefinite state of emergency and issue public health orders by decree – including “any order… that the minister believes is reasonably necessary to protect public health.”

Tens of thousands of people keep streaming through the streets. Many I’ve spoken to are concerned about the state govt, Premier, vaccine mandates, the pandemic bill & what future holds for their kids. #melbourneprotest pic.twitter.com/smexulQ4ts

— Sophie Elsworth (@sophieelsworth) November 20, 2021

Should the bill pass, it would allow Andrews to target certain classes of people with these orders, categorizing them by age, occupation, or vaccination status. Fines for noncompliance would range from up to AU$21,800 for people and AU$109,000 for businesses.

Alternative media sources claimed that more than 100,000 people showed up to protest. However, the demonstration remained free of the violent clashes seen at protests in Melbourne in recent months.

Pretty sure this is the biggest FUCK YOU in Australia’s history.#MelbourneProtest pic.twitter.com/DOtsLbpyRi

— shane whitely (@newsheli) November 20, 2021

“Australia has been willing to send troops to all parts of the world to help people become free,” one military veteran told a crowd of listeners during the protest. “To now be fighting oppression here in our own country, it’s saddening.”

Melbourne Australia 🇦🇺

An Aussie veteran is calling former servicemen and cops who have sworn an oath to Australia to stand up against the tyranny 👊 pic.twitter.com/4RsoRMjoJE

— 𝙏𝙝𝙚 𝙅𝙪𝙜𝙜𝙚𝙧𝙣𝙖𝙪𝙩 (@TheJuggernaut88) November 20, 2021

Huge numbers of protesters also turned out in Sydney, and although more than 600 police officers were deployed to watch over the gathering, no arrests were made, 9News reported.

Protestors in Sydney shouting
“SACK THEM ALL”
GO Sydney pic.twitter.com/sEUxkDeIzj

— Constitutional Freedom 🇦🇺 (@section_117) November 20, 2021

Holding signs decrying state “tyranny,” the demonstrators chanted “freedom” and called for the firing of state politicians who have implemented a two-tier system where the unvaccinated are denied many of the privileges extended to the fully jabbed.

BREAKING | Thousands of protesters are gathering at Hyde Park for freedom rallies. @9NewsSyd pic.twitter.com/2FXE6jBU4M

— Airlie Walsh (@AirlieWalsh) November 20, 2021

Similarly massive gatherings took place in Adelaide, Brisbane, and Perth, with no notable incidents of violence or police action. Further afield, protests are taking place in more than 120 cities around the world this weekend, in a loosely coordinated event dubbed the ‘Worldwide Rally For Freedom’ by activists.

Thousands of people have descended across Rundle Park today as part of an Adelaide freedom rally. Some of those in the crowd say they have lost their job as a result of mandated vaccinations in their sector. @9NewsAdel pic.twitter.com/YdzvxYJhqF

— Kelly Hughes (@KellyCHughes_) November 20, 2021

Perth, Australia.. the national anthem rings out across the city.! ❤️ pic.twitter.com/P1FqsY6ECZ

— Pelham (@Resist_05) November 20, 2021

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Greece will soon prohibit unvaccinated residents from entering a litany of public spaces, the country’s prime minister has announced, claiming its current Covid outbreak is largely fueled by those who haven’t received the jab.

Starting next week, the unvaccinated will be barred from entry to restaurants, cafes, theaters, bars, gyms and museums, among other indoor public places, PM Kyriakos Mitsotakis said on Thursday, noting that a negative Covid-19 test will no longer be accepted as an alternative to proof of vaccination.

“This is indeed a pandemic of the unvaccinated,” he said as he announced the move in a televised address, adding “Greece is mourning unnecessary losses because it simply does not have the vaccination rates of other European countries.”

The new rules are set to take effect on Monday, and will require Greeks to present vaccine certificates to businesses and other indoor establishments to be allowed inside. Those attending religious services mark a rare exception, however, as they will only be asked to present a negative test in order to enter a church or other place of worship.

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In a bid to encourage booster vaccinations among the elderly – a population much more vulnerable to Covid-19 – citizens over the age of 60 will be made to renew their certificate after a period of seven months.

While officials had hoped to hit a full vaccination figure of 70% for Greece’s population of 11 million by autumn, the number currently stands at about 62%, according to Reuters. As its weekly case counts continue to soar to record highs, the country reported 7,317 new Covid-19 infections and 63 deaths on Thursday, bringing the totals to more than 860,000 cases and some 17,000 fatalities since the pandemic kicked off in late 2019.

The new restrictions in Greece mirror similar policies implemented elsewhere in Europe, with Austria, Germany, Italy, France, the Czech Republic and Slovakia each imposing limits on public life for the unvaccinated. Though the Austrian government recently imposed a full lockdown for millions of residents who have not received the shot, some officials in that country are pushing for even harsher policies, including a national stay-at-home order on the jabbed and non-jabbed alike.

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Sports goods retailer Decathlon has said it won’t be selling canoes in its stores in northern France anymore because the light vessels are increasingly being used by migrants trying to cross into England.

“Given the current context… the purchase of canoes will no longer be possible” in Decathlon stores in Calais and Grande-Synthe, outside Dunkirk, the French retailer announced.

The two cities overlook the Strait of Dover, which is the narrowest point in the English Channel. Thousands of migrants have been using this spot in recent years to try to make the dangerous 34-kilometer-long sea journey from France to the UK.A lot of canoes aren’t being purchased for their original sporting purpose, Decathlon complained.

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They “could be used to cross the Channel” and as a result of this, “people’s lives would be endangered,” it pointed out.

“We are committed to never putting our customers at risk in the use of our products, whatever the circumstances,” the company said. 

The initiative to remove canoes from the shelves came from the stores themselves and was backed by the head office, according to the retailer. However, Decathlon will keep selling the vessels online and in its other shops across France.

Last Thursday, two canoes were found adrift in the Channel near Calais, while two migrants were rescued from the water. The next day, three more people were reported missing after attempting to get to England using canoes.

Tensions between London and Paris are high after a record number of migrants – 1,185 – were able to cross the Channel a week ago. 

Britain said it was “unacceptable” that France had let so many people slip through, but the French government insisted they were “neither their collaborators nor their assistants” and blamed the soaring crossings on the smugglers and the UK’s labor market, which makes the country attractive to people eager to “work at low cost.”

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A pack of wild boars were rounded up and euthanized after one of the animals attacked a police officer in the streets of Hong Kong – the opening shot in a pitched battle between the feral hogs and the city’s law enforcement.

A group of veterinarians took seven wild boars into custody, euthanizing the beasts after knocking them out with dart guns in an area near the financial center of the city, according to a statement from Hong Kong’s Agriculture, Fisheries, and Conservation Department on Thursday.

The pigs were captured after one attacked a police officer last week, an act which reflects the city’s new policy toward the animals: stop them before they attack again.

The aggressive boar knocked down a police officer by biting his leg last week as the two faced off in a residential car park, the pig only losing the battle after falling off the building to its death. The wild boars are apparently “accustomed” to wandering back and forth along the roadway, begging for food from pedestrians and vehicles alike. Previously, the city had handled the population by capturing and sedating the animals, then relocating them to “remote areas,” according to the the department.

Hong Kong CEO Carrie Lam vowed to increase penalties for those citizens found feeding the boars, which have reportedly been responsible for some 30 attacks in recent years. While residents are warned not to feed the boars so as not to encourage population growth or disease outbreaks, the animals are a favorite among some visitors. Still, Lam insisted “we can’t simply sit on our hands while things deteriorate.”

Animal rights groups have responded with a protest letter against a policy of euthanasia, pointing out that most visitors do not feed the boars and arguing resources should be directed toward stopping the human activity rather than blaming all the boars. Allowing the boars to be captured and killed “ignores their right to live and considers their existence in urban areas as a capital offense,” the letter read.

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The Chinese envoy to the European Union has reiterated Beijing’s goal of peacefully reuniting Taiwan with the mainland but stated the country’s preparedness to use “decisive measures.”

Speaking on Tuesday, China’s ambassador to the EU, Zhang Ming, said Beijing would never change its position on Taiwan. “If anything changes, it is that the Chinese people’s resolve to realize complete reunification of our country grows even stronger,” Ming told an online think tank event in Brussels.

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“Some people in Europe seem to underestimate the Chinese people’s aspiration for a reunification of our country,” he added, noting also that the bloc must lift its sanctions if a new Sino-EU investment deal is to be ratified. 

In May, Brussels halted an investment pact agreed with China last December, after Beijing imposed sanctions on several members of the European Parliament. The EU responded, introducing its own sanctions related to the treatment of the Uyghur people and alleged genocide in Xinjiang. 

In recent years, China has become increasingly assertive about reuniting its wealthy island neighbor with the mainland. Beijing claims Taiwan is an inalienable part of the country and has called on Western parties to refrain from interfering in Chinese internal affairs. Western nations, notably the US and UK, have shown willingness to defend the democratic island. 

Taiwan considers itself to be independent of China since 1949 when the communist forces overthrew the government of the Republic of China on the mainland, forcing the Kuomintang-ruled state to relocate there.

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French luxury giant Dior has taken down a controversial photograph that had been criticized in China for “smearing Asian women” by pandering to Western stereotypes while “distorting Chinese culture.”

The photo, which was part of the brand’s ‘Lady Dior’ exhibition in Shanghai, depicts an Asian model wearing a traditional dress and clutching a Dior handbag. It came under fire this week from Chinese media outlets for featuring “spooky eyes, [a] gloomy face and Qing Dynasty-styled nail armor.”

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Although Dior has not released a statement regarding the controversy, it confirmed to fashion trade publication Business of Fashion that the photo had been removed from the exhibition. The brand has also reportedly taken the photo off Chinese social media platform Weibo.

The image, which was shot by Chinese photographer Chen Man, had drawn both media ire and public outrage. However, there were apparently no calls for a boycott of the brand.

In an editorial on Monday titled “Is This the Asian Woman in Dior’s Eyes?”, the Beijing Daily paper had noted that the image makes Chinese consumers uncomfortable. The publication criticized Man for “playing up to the brands, or the aesthetic tastes of the Western world.”

For years, Asian women have always appeared with small eyes and freckles from the Western perspective, but the Chinese way to appreciate art and beauty can’t be distorted by that.

Warning that both the brand and the photographer had “gone too far,” the China Women’s News paper ran an editorial on Wednesday that claimed it “indicated their intention of uglifying Chinese women and distorting Chinese culture.”

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“Again, from… Dior’s ghost-style picture, which makes the public feel uncomfortable, it’s easy to see some Western brands’ ‘pride and prejudice’ in their aesthetics and culture,” said the newspaper, which is run by the All-China Women’s Federation.

Meanwhile, the Global Times noted that the “lingering controversy could pose a delicate situation” for Dior and other global brands – for whom China’s “massive” luxury market was one of the biggest sources of revenue. The paper said that the Chinese public had become “increasingly sensitive” toward the depiction and treatment of Chinese people and culture by foreign companies.

While pointing out that Chinese social media users had demanded the company and photographer explain their intention, a number of media outlets also highlighted how some netizens had praised the photo as a departure from typical standards of beauty in the country, often characterized by “fair skin and large eyes.”

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A Roadmap for AI in the Intelligence Community

(Editor’s Note: This article was first published by our friends at Just Security and is the fourth in a series that is diving into the foundational barriers to the broad integration of AI in the IC – culture, budget, acquisition, risk, and oversight.  This article considers a new IC approach to risk management.)

OPINION — I have written previously that the Intelligence Community (IC) must rapidly advance its artificial intelligence (AI) capabilities to keep pace with our nation’s adversaries and continue to provide policymakers with accurate, timely, and exquisite insights. The good news is that there is strong bipartisan support for doing so. The not-so-good news is that the IC is not well-postured to move quickly and take the risks required to continue to outpace China and other strategic competitors over the next decade.

In addition to the practical budget and acquisition hurdles facing the IC, there is a strong cultural resistance to taking risks when not absolutely necessary. This is understandable given the life-and-death nature of intelligence work and the U.S. government’s imperative to wisely execute national security funds and activities. However, some risks related to innovative and cutting-edge technologies like AI are in fact necessary, and the risk of inaction – the costs of not pursuing AI capabilities – is greater than the risk of action.

The Need for a Risk Framework

For each incredible new invention, there are hundreds of brilliant ideas that have failed. To entrepreneurs and innovators, “failure” is not a bad word. Rather, failed ideas are often critical steps in the learning process that ultimately lead to a successful product; without those prior failed attempts, that final product might never be created. As former President of India A.P.J. Abdul Kalam once said, “FAIL” should really stand for “First Attempt In Learning.”

The U.S. government, however, is not Silicon Valley; it does not consider failure a useful part of any process, especially when it comes to national security activities and taxpayer dollars. Indeed, no one in the U.S. government wants to incur additional costs or delay or lose taxpayer dollars. But there is rarely a distinction made within the government between big failures, which may have a lasting, devastating, and even life-threatening impact, and small failures, which may be mere stumbling blocks with acceptable levels of impact that result in helpful course corrections.

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As a subcommittee report of the House Permanent Select Committee on Intelligence (HPSCI) notes “[p]rogram failures are often met with harsh penalties and very public rebukes from Congress which often fails to appreciate that not all failures are the same. Especially with cutting-edge research in technologies … early failures are a near certainty …. In fact, failing fast and adapting quickly is a critical part of innovation.” There is a vital difference between an innovative project that fails and a failure to innovate. The former teaches us something we did not know before, while the latter is a national security risk.

Faced with congressional hearings, inspector general reports, performance evaluation downgrades, negative reputational effects, and even personal liability, IC officers are understandably risk-averse and prefer not to introduce any new risk. That is, of course, neither realistic nor the standard the IC meets today. The IC is constantly managing a multitude of operational risks – that its officers, sources, or methods will be exposed, that it will miss (or misinterpret) indications of an attack, or that it will otherwise fail to produce the intelligence policymakers need at the right time and place. Yet in the face of such serious risks, the IC proactively and aggressively pursues its mission. It recognizes that it must find effective ways to understand, mitigate, and make decisions around risk, and therefore it takes action to make sure potential ramifications are clear, appropriate, and accepted before any failure occurs. In short, the IC has long known that its operations cannot be paralyzed by a zero-risk tolerance that is neither desirable nor attainable. This recognition must also be applied to the ways in which the IC acquires, develops, and uses new technology.

This is particularly important in the context of AI. While AI has made amazing progress in recent years, the underlying technology, the algorithms and their application, are still evolving and the resulting capabilities, by design, will continue to learn and adapt. AI holds enormous promise to transform a variety of IC missions and tasks, but how and when these changes may occur is difficult to forecast and AI’s constant innovation will introduce uncertainty and mistakes. There will be unexpected breakthroughs, as well as failures in areas that initially seemed promising.

The IC must rethink its willingness to take risks in a field where change and failure is embraced as part of the key to future success. The IC must experiment and iterate its progress over time and shift from a culture that punishes even reasonable risk to one that embraces, mitigates, and owns it. This can only be done with a systematic, repeatable, and consistent approach to making risk-conscious decisions.

Today there is no cross-IC mechanism for thinking about risk, let alone for taking it. When considering new activities or approaches, each IC element manages risk through its own lens and mechanisms, if at all. Several individual IC elements have created internal risk assessment frameworks to help officers understand the risks of both action and inaction, and to navigate the decisions they are empowered to make depending upon the circumstances. These frameworks increase confidence that if an activity goes wrong, supervisors all the way up the chain will provide backing as long as the risk was reasonable, well-considered and understood, and the right leaders approved it. And while risk assessments are often not precise instruments of measurement – they reflect the quality of the data, the varied expertise of those conducting the assessments, and the subjective interpretation of the results – regularized and systematic risk assessments are nevertheless a key part of effective risk management and facilitate decision-making at all levels.

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Creating these individual frameworks is commendable and leading-edge for government agencies, but more must be done holistically across the IC. Irregular and inconsistent risk assessments among IC elements will not provide the comfort and certainty needed to drive an IC-wide cultural shift to taking risk. At the same time, the unique nature of the IC, comprised of 18 different elements, each with similar and overlapping, but not identical, missions, roles, authorities, threats and vulnerabilities, does not lend itself to a one-size-fits-all approach.

For this reason, the IC needs a flexible but common strategic framework for considering risk that can apply across the community, with each element having the ability to tailor that framework to its own mission space. Such an approach is not unlike how the community is managed in many areas today – with overarching IC-wide policy that is locally interpreted and implemented to fit the specific needs of each IC element. When it comes to risk, creating an umbrella IC-wide framework will significantly improve the workforce’s ability to understand acceptable risks and tradeoffs, produce comprehensible and comparable risk determinations across the IC, and provide policymakers the ability to anticipate and mitigate failure and unintended escalation.

Critical Elements of a Risk Framework

A common IC AI risk framework should inform and help prioritize decisions from acquisition or development, to deployment, to performance in a consistent way across the IC. To start, the IC should create common AI risk management principles, like its existing principles of transparency and AI ethics, that include clear and consistent definitions, thresholds, and standards. These principles should drive a repeatable risk assessment process that each IC element can tailor to its individual needs, and should promote policy, governance, and technological approaches that are aligned to risk management.

The successful implementation of this risk framework requires a multi-disciplinary approach involving leaders from across the organization, experts from all relevant functional areas, and managers who can ensure vigilance in implementation. A whole-of-activity methodology that includes technologists, collectors, analysts, innovators, security officers, acquisition officers, lawyers and more, is critical to ensuring a full 360-degree understanding of the opportunities, issues, risks, and potential consequences associated with a particular action, and to enabling the best-informed decision.

Given the many players involved, each IC element must strengthen internal processes to manage the potential disconnects that can lead to unintended risks and to create a culture that instills in every officer a responsibility to proactively consider risk at each stage of the activity. Internal governance should include an interdisciplinary Risk Management Council (RMC) made up of senior leaders from across the organization. The RMC should establish clear and consistent thresholds for when a risk assessment is required, recommended, or not needed given that resource constraints likely will not allow all of the broad and diverse AI activities within organizations to be assessed. These thresholds should be consistent with the IC risk management principles so that as IC elements work together on projects across the community, officers have similar understandings and expectations.

The risk framework itself should provide a common taxonomy and process to:

• Understand and identify potential failures, including the source, timeline, and range of effects.
• Analyze failures and risks by identifying internal vulnerabilities or predisposing conditions that could increase the likelihood of adverse impact.
• Evaluate the likelihood of failure, taking into consideration risks and vulnerabilities.
• Assess the severity of the potential impact, to include potential harm to organizational operations, assets, individuals, other organizations, or the nation.
• Consider whether the ultimate risk may be sufficiently mitigated or whether it should be transferred, avoided, or accepted.

AI-related risks may include, among other things, technology failure, biased data, adversarial attacks, supply chain compromises, human error, cost overruns, legal compliance challenges, or oversight issues.

An initial risk level is determined by considering the likelihood of a failure against the severity of the potential impact. For example, is there is a low, moderate, or high likelihood of supply chain compromise? Would such a compromise affect only one discrete system or are there system-wide implications? These calculations will result in an initial risk level. Then potential mitigation measures, such as additional policies, training, or security measures, are applied to lower the initial risk level to an adjusted risk level. For example, physically or logically segmenting an organization’s systems so that a compromise only touches one system would significantly decrease the risk level associated with that particular technology. The higher the likelihood of supply chain compromise, the lower the severity of its impact must be to offset the risk, and vice versa. Organizations should apply the Swiss Cheese Model of more than one preventative or mitigative action for a more effective layered defense. Organizations then must consider the adjusted risk level in relation to their tolerance for risk; how much risk (and potential consequence) is acceptable in pursuit of value? This requires defining the IC’s risk tolerance levels, within which IC elements may again define their own levels based upon their unique missions.

Understanding and considering the risk of action is an important step forward for the IC, but it is not the last step. Sometimes overlooked in risk assessment practices is the consideration of the risk of inaction. To fully evaluate potential options, decision-makers must consider whether the overall risk of doing something is outweighed by the risks of not doing it. If the IC does not pursue particular AI capabilities, what is the opportunity cost of that inaction? Any final determination about whether to take action must consider whether declining to act would cause greater risk of significant harm. While the answer will not always be yes, in the case of AI and emerging technology, it is a very realistic possibility.

And, finally, a risk framework only works if people know about it. Broad communication – about the existence of the framework, how to apply it, and expectations for doing so – is vital. We cannot hold people accountable for appropriately managing risk if we do not clearly and consistently communicate and help people use the structure and mechanisms for doing so.

Buy-in To Enhance Confidence

An IC-wide AI risk framework will help IC officers understand risks and determine when and how to take advantage of innovative emerging technologies like AI, increasing comfort with uncertainty and risk-taking in the pursuit of new capabilities. Such a risk framework will have even greater impact if it is accepted – explicitly or implicitly – by the IC’s congressional overseers. The final article in this series will delve more deeply into needed changes to further improve the crucial relationship between the IC and its congressional overseers. It will also provide a link to a full report that provides more detail on each aspect of the series, including a draft IC AI Risk Framework.

Although Congress is not formally bound by such a framework, given the significant accountability measures that often flow from these overseers, a meeting of the minds between the IC and its congressional overseers is critical. Indeed, these overseers should have awareness of and an informal ability to provide feedback into the framework as it is being developed. This level of transparency and partnership would lead to at least two important benefits: first, increased confidence in the framework by all; and second, better insight into IC decision-making for IC overseers.

Ultimately, such a mutual understanding would encourage exactly what the IC needs to truly take advantage of next-generation technology like AI: a culture of experimentation, innovation, and creativity that sees reasonable risk and failure as necessary steps to game-changing outcomes.

Read also AI and the IC: The Tangled Web of Budget and Acquisition

Read also Artificial Intelligence in the IC: Culture is Critical

Read also AI and the IC: The Challenges Ahead

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Rotterdam Mayor Ahmed Aboutaleb has described an anti-lockdown protest in his city as an “orgy of violence.” The Dutch demonstration devolved into a violent riot that saw police open fire on protesters.

Aboutaleb described the events of Friday night as an “orgy of violence,” after protesters packed Rotterdam’s central Coolsingel shopping street to voice their opposition to an ongoing partial lockdown, a ban on New Year’s Eve fireworks displays, and the possibility of a two-tiered system of freedom in the Netherlands, one of liberty for the vaccinated and restrictions for those without the jab.

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The protest soon got out of hand, and police said on Saturday that 57 people were arrested. Protesters were seen torching police vehicles and launching fireworks at police, who shot at them in response.

Aboutaleb said that the cops had been “forced” to use their weapons. “On a number of occasions the police felt it necessary to draw their weapons to defend themselves,” he told reporters. “They shot at protesters, people were injured.”

Police say at least seven people were injured. Two of these injuries were caused by police bullets, and the victims are still in hospital. One officer was hospitalized, while several others were treated at the scene for minor injuries.

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