Speaker 

Please welcome the President and CEO of the consumer Technology Association, Gary Shapiro.

 
Gary Shapiro 

Good afternoon. Are you CES ready? Great. Welcome to CES and I am so delighted to stand before you today to introduce US Secretary of Transportation, Elaine l Chow, the first Asian American woman to be appointed to a president's cabinet in American history. This is in fact actually her second cabinet position. Previously under another administration. She served as US Secretary of Labor Secretary challenge distinguished career in the private, public and nonprofit sectors. Under Secretary Charles leadership, a key US Department of Transportation priority is engaging with new technologies to address legitimate public concerns about safety, security and privacy without hampering innovation. She's been actively engaged and encouraging and challenging the high tech sector to address issues of societal importance to our country. Secretary challenge visionary leadership in the high tech sector is preparing our country for the transportation systems of the future. Secretary chair received her MBA from the Harvard Business School and as a recipient of 3737 honorary doctorate degrees. Ladies and gentlemen, please join me in welcoming Secretary Chao.

 
Elaine Chao 

Hi, everyone. Thank you, Gary, for your leadership. Over the last few decades, you've been terrific and we want to give Gary a tremendous round of applause. I also would like to recognize the Acting Administrator for the Federal Transit Administration, Jane Williams, who is here in the audience, Jane wanting to stand up. I'm going to go back a little bit in history. So during the 17th and 18th centuries, advancements in seaports, canals and river navigation, enabled commerce, and leveraged America's extensive waterway assets. And in the 19th century, steam engine power boats and railway locomotives dramatically opened up the western frontier. And during the 20th century, the automobile potential was 16 Banda with the building of the interstate highway system. And we harnessed also the sky and space. So the need and quest for more better, safer transportation technologies never stops. In fact, the history of innovation and transportation are intertwined. So take automobiles for example. They've changed a great deal over the decades and thank goodness in signet in significant part. Because of the vehicle technology advancements. Annual traffic fatalities have actually declined 33% since 1972, and that achievement occurred, while vehicle miles traveled actually increased 156% the fatality rate in 1972 was nearly four times higher than it is today. And one thing We now know and that is that newer cars are actually safer cars. Our data shows that your chances of surviving a serious crash, nearly double. If you are in a new car, then if you are in a car that's 18 years old or more so further improving traffic safety remains the department's greatest an ongoing transportation challenge 2018 mark the second consecutive year of declining crash fatalities, and initial data for the first three quarters of 2019 indicate another yearly decline. So progress is being made. And in the past few years, a number of safety technologies have become commonly available in new cars, including blind spot monitoring, adaptive cruise control Lane Departure warnings and automatic braking systems. These are just a few. These driver assisted technologies are instrumental in automated vehicles, which are among the most exciting ongoing developments in transportation today. automated vehicles will someday advanced traffic safety as they transform surface transportation. automated vehicles have the potential to save thousands of lives annually and improve the quality of life through reduction of traffic congestion, increased productivity, and environmental benefits as well as these will restore, also mobility for millions of people who faced transportation challenges, such as the elderly or the disabled. In 2017, the US Department of Transportation provided voluntary guidelines on the development of automated vehicles. It was called automated driving systems, two point o a vision for safety. And in the following year, the department actually addressed AV developments across all Surface Transportation modes. And that is because the developments and technology in this field was happening so quickly. So we came out with AV three point O. Basically, it's entitled preparing for the future of transportation, automated vehicles 3.0. And today, I am pleased to announce the release of AV 4.0, ensuring American leadership in automated vehicle technologies. AV4.0 is a joint White House and US department Transportation initiative. And the takeaway from AV 4.0 is that the federal government is all in for safer, better and more inclusive transportation, aided by automated driving systems. At 4.0 unifies AV efforts across 38 different federal agencies and departments, and independent agencies and commissions and Executive Office of the President, you get the drift. This document and set of guidelines recognizes the value of private sector leadership in AV research, development and integration. This kind of innovation requires appropriate government oversight to ensure safety, open markets, strategic allies of public resources, and of course, protection of the public interest. But realizing the vast potential of a V's will require collaboration and information sharing among industry partners, state and local governments, academia, nonprofits, standards, development organizations, and of course, the 38 different federal government agencies, independent commissions departments. So av 4.0 will inform this collaborative effort in automated vehicles for all stakeholders and outlines federal government efforts to address areas of concern at four point O establishes US government principles organized around three core interests and their components. The first principle is protect users and communities. AV technologies are not yet advanced enough to enable y scale deployment of fully autonomous vehicles. As development continues in the years ahead, the federal government's areas of focus in protecting users and communities will be to number one, prioritize safety. Safety must always be number one, and it is at the US Department of Transportation. Number two, we've got to emphasize security, specially cyber security. And number three, we've got to address public's concerns about increasing mobility and accessibility and increased Number three is ensure privacy and also data security. The number two principle is to promote efficient markets. It should not be the role of the federal government to pick winners or losers. So Principle number two entails number one, remaining technology neutral to protecting American innovation and creativity by protecting intellectual property, three, modernizing all these different regulations. Regulations are needed, but when they become obsolete, irrelevant, outdated, they need to be changed. The third principle is to facilitate coordinated efforts and we do this through number one, promoting consistent standards and policies and to to ensure a consistent federal approach and number three to improve transportation system level effects. As stated in the report cover letter, the landscape for AV innovation is complex and evolving. But the goals are pretty simple. They're clear and consistent. They need to improve safety, security and quality of life for all Americans, that's the barometer for success. And that will be the result of these and other transportation initiatives and innovations currently underway. So innovation is occurring in all modes of transport. aviation is experiencing tremendous growth of unmanned aircraft systems, or drones, using drones for surveying damaged environmental circumstances or scenarios, or utilizing drones for search and rescue, or for agricultural applications, and delivery of packages, and even passengers are just a few of the current and future potential uses of drones. There are now 1.5 million drones in the skies, and over 160,000 remote pilots are now registered with the FAA. This is a job category that did not even exist. Five years ago. So the department is charting a course for the safe integration of these innovations into our National Airspace. And these initiatives include allowing drone testing in a variety of environments, advancing drone airspace management, and developing a framework for remote drone identification, which has security significant security implications. The Department of Transportation recently announced a notice of proposed rulemaking for remote identification of drones. And the proposed remote ID rule would apply to all drones over half a pound that are required to be registered with the Federal Aviation Administration. So remote drone remote IDs will enhance Safety and Security by allowing the FAA, law enforcement and federal security agencies to identify drones flying in their jurisdiction. And as the FAA and operators move towards a traffic management system for drones, remote ID technologies will help lay the foundation for the safe deployment of more complex drone operations. And these include, among other initiatives, beyond the virtual and visual line of sight at low altitudes. So for those who are interested, the 60 day public comment period and our March 2 2020 and I think for all of us who have read about or seen recent news developments out of Colorado and also Nebraska of mystery drones flying in formations at night. With that, certainly a timely illustration of why remote IDs are needed. And then let me talk about one other mode of transportation, no pun intended, but space transportation innovations is actually taking off as well, thanks to reusable rockets, air launch systems, and other private sector initiatives. So six years ago, the US was third behind Russia and China in commercial space launches. Today, the US is number one in commercial space launches. In 2019. There were 34 us launches and re entries, and the global space economies value is a pretty Approaching $400 billion annually. So the US Department of Transportation is streamlining launch and re entry licensing processes to enable further growth in the commercial space sector, outdated and cumbersome licensing regulations, and launch procedures are being overhauled. And in fact, we've established an office of space ports just recently as well. So there will be even more activity including some rulemakings in this arena later this year. And for some who are interested in commercial space travel, they're even thinking about using commercial space travel launches, to go let's say from the Western Hemisphere, to the eastern hemisphere, and you'll take a few minutes. So as you can plainly see as we can all see, being here I see as so Exciting. We see in the displays at CES, on America's roads and in our skies. Such exciting transportation advancements that are occurring. Transportation today is synonymous with innovation. And transportation is going to be as instrumental in America's future as it has been since our nation's founding. And at the US Department of Transportation, we are preparing for the transportation system of the future. And all of this speaks to our preparation for the future transportation system that will make all our lives easier, more enjoyable, and increase the standard of living for everyone on Earth. Now, I'm just a warm up act. You're going to hear from Michael crowd CEOs and you're going to hear from Tiffany More about enhancing America's leadership in automated systems in the world, and also more guidance about av 4.0. So it's always such a pleasure to be here and CES. And thanks so much again, for having me. Thanks.

 
Tiffany Moore 

Thank you, Madam Secretary.

 
Elaine Chao 

Thank you so much. Thank you very much.

 
Tiffany Moore 

Thank you, Madam Secretary. It's so valuable to have her here at CES to inform business leaders and startups on the next advances in transportation innovation. And as we've said, it's critical that we're having policy discussions here at CES, Secretary Chow announced some exciting news on self driving vehicles front. And joining me to discuss this news along with other tech policy topics is Michael craft CEOs Chief Technology Officer Serve United States at the White House. Michael was recently confirmed in this role with enthusiastic support from the tech industry. So please join me and welcoming Michael.

 
Michael Kratsios 

Thank you.

 
Tiffany Moore 

Well, first, Thank you, Mike. I will say from day one, when you join the administration, you have engaged the tech industry. And so thank you for that. It's been a couple years now, the self, the kind of important news that the Secretary announced is the importance of self driving vehicles. And we really do believe that it'll be our best opportunity to create greater mobility. And so the secretary announced a V four point now she went through each kind of iteration. And she mentioned how it was a joint effort. Essentially, the entire alphabet soup of government agencies are working together on this. Can you speak a little bit about the significance of that? Absolutely. I think it's a big step for times vehicle broadly as a market and also for for the federal government. So our began right after inauguration in 2017. And the first iteration of autonomous vehicle guidance was really trying to give the private sector some guidance about the way that they should be thinking about the development of autonomous vehicles. And then we move forward with a V 3.0. Where we looked at more from multimodal standpoint where it's not just vehicles themselves, but other modes of service transportation as well. When we look back and said, What would be the most valuable effort that we could do is administration going forward? And we quickly realized that the autonomous vehicle question is not one that is how solely at the department transportation is something that all of our agencies across the entire federal government are focused on and the only way that we can drive and ensure American leadership in this critical industry of the future is by having all of our agencies work together and the only sort of group that can help bring it together and command everyone to come to the table and start working together as when the White House and this joint effort between our offices the White House and do t has been has really been a pleasure to work on over the last year by bringing all these players together. You can finally see how expansive efforts are across government. So there's kind of two things I want to point to first is, you know, now if you go and read the document 4.0, you'll be able to find resources and better understand how individual agencies are working towards the necessary pieces of a larger AV puzzle. So that's one. The second thing is, is really around the research and development piece. A lot of the work that I do in my office is focus on how we can drive technological leadership as a country. And what's unique about the federal government versus many of our peer competitors, or even countries around the world is that we have lots of agencies doing incredible work and all sorts of technologies. There's a few related research being done at the National Science Foundation at DARPA. It's being done at NASA and so on, and able to bring all these research efforts together in order to drive next generation discovery and a visa is critical. So we're very excited about this document. I think it sends a strong message to the country and to the world that we're unified as a government to drive American leadership in this important domain.

 
Tiffany Moore 

So one quick question, what does that mean? I mean, the audience is full of technologists, startups, business leaders. What does that deck document mean for them?

 
Michael Kratsios 

What it means for you guys that you have a federal government which has come together and said, We want the US to lead in this domain. And we want to give you the tools to do that. So now you can see which individual agencies have jurisdictions over individual parts of a larger AV system, whether it's spectrum related works is done by different agencies, then safety related work and so on. So we're here for you and we a whole of government is coming together to drive this leadership position.

 
Tiffany Moore 

So want to talk a little bit about artificial intelligence. You've made some news but I think it's important for the benefit of the the audience, you will find our artificial intelligence all throughout CES, every company, what is hardware software, they are unveiling, how they're going to use AI. It is the ingredient technology and you'll see it throughout the show. But you all the White House has kind of taken an approach. And if you could speak a little bit, just want to walk the audience through the American AI initiative. What the significance is, there was an executive order that the President signed a little less than a year ago. Can you kind of Just tell us what it is. And then we'll get to some of your

 
Michael Kratsios 

Yeah, absolutely. So again, back dating back to 2017, we started identifying what should be the core technological priority in the policy domain for the US government. And we settled on the largest theme, the larger theme of ensuring American leadership in emerging technologies. And then we had the very tough question of what are the core emerging technologies United States must lead on and obviously first on the list was artificial intelligence. And over next year, we worked very diligently to develop the national strategy for the United States on AI kind of a first of its kind document how we can ensure, as we put it, as a president said, maintain American leadership and artificial intelligence. In order to do that. We launched the American AI initiative, which is our national strategy just last year, have a strategy really rests on four major pillars and their four efforts that the US government is leading in order to drive us leadership position. The first is in research and development leadership, as I said earlier about autonomous vehicles. The same goes with artificial intelligence. There's research being done across all of government, from our national labs at DMV to the National Science Foundation, to DARPA, to DARPA to know and so on, and our effort is to bring those agencies together and to also reprioritize artificial intelligence of budget priority. So we're spending nearly a billion dollars now on non defense, AI research and development as a as a federal government. pillar two is around workforce development. And that's critical because it's not only how can we ensure that the next great researchers of artificial intelligence and discovers are Americans, but also how do we prepare the American worker for the jobs that require artificial intelligence? And a lot of you may have heard or seen Ivanka Trump yesterday speak about the efforts that we're doing to rescale and retrain Americans for 21st century jobs. The third pillar is around regulatory approach. So we want to make sure that we have a regulatory system in the US that encourages innovation, artificial intelligence doesn't stifle it, but encouraged in a way that still respects the very important you know, simple liberties and other concerns that we as Americans hold dear. And the fourth is around international engagement. We have many competitors around the world and many nations around the world who are actually using artificial intelligence in ways that we Americans are very troubled with. And we see other nations use artificial intelligence to track their people to imprison ethnic minorities, this either not use cases which we like as Americans were approve of. So we need to make sure that we're able to be leaders in the United States in developing AI and be able to promulgate some of the rules and thoughts we have it around the world so we can maintain that leadership position.

 
Tiffany Moore 

Want to talk a little bit more about workforce, that's something that's incredibly important to CTA and also see, as you'll notice, us actually a future work track that went on this morning that focused on how our company's particular tech companies as there's some uneasiness with AI, and we'll talk a little bit about that, particularly on workforce, how do we make sure that the workforce is trained for the jobs of the future? And again, I think Secretary challenge there are job categories that weren't even that even didn't exist five years ago, and that's what we've done with The apprenticeship coalition with IBM that we do join with IBM as a how do we create other entry points into tech. So appreciate a lot everything that you all are doing and understanding the responsibility that we have to ensure that our workforce is prepared. So you have some news. Yeah. Yesterday, you decided to shake up my entire presentation via announcing something but really excited yesterday, the White House announced 10 principles to guide federal regulation of AI technologies and applications and geared towards advancing AI in a way that reflects things that are important to us as Americans that includes the values of freedom, human rights and civil liberties. Can you speak a little bit about kind of that announcement yesterday? And what that means?

 
Michael Kratsios 

Yeah, this is a very, very big step for both both the United States and for the world. Many of you have been tracking the artificial intelligence sort of policy domain over the past couple years. We've seen a lot of his private companies especially have taken a very public positions on what they believe are principles which they will be abiding by Their products will be abiding by and those are critically important. And we're very glad that we have companies for being proactive to think about the way that they develop artificial intelligence technologies. At the same time, there's been a lot of discussion at the policy level, both here in the United States and Europe and around the globe on how you can actually put regulations if you've need regulations around artificial intelligence. And we want to be in a position where the US continuously the world innovation, but also make sure that we're looking out for and protecting Americans as these technologies are developed and deployed around the country. So when the President signed the executive order to maintain American leadership in AI last year, one of the directives he had to the White House was to come together and promulgate a guidance document that the White House will produce that will inform the way that our regulatory agencies oversee AI power technologies. So the the scope of this announcement is around the way that the US government is going to be regulating AI in the private sector. So if you are a developer of an AI powered medical diagnostic, and want to Have that diagnostic approved by the FDA for use by consumers? What are the types of considerations that the FDA should start baking into their approval process, which may be new or different because the technology now has AI didn't have before. These principles also need to apply to the great work that Secretary Chow is doing Department of Transportation. So when it says promulgating new safety rules around New autonomous vehicles going to be using artificial intelligence, what should they be considering today that they weren't considering 10 years ago when I wasn't in play? So as you can imagine, we had a very challenging kind of out of the gate question for us, because we had to create a set a guidance document that was applicable both to the FDA regulators who may take make a more stringent approach because we're dealing with people's health to less stringent or different types of use cases across the federal government. And we Alton produced was this document that's out for comment now. So I ask all of you in the audience and anyone watching that if you have an interest in this, please look up that document and you have 60 days to send us comments. We can respond. it. But generally speaking, what these relies on 10 principles, it can be kind of grouped in different categories. But the first and most important one is public comment. And what we're trying to say is that, you know, when FDA or any other agencies attempting to promulgate new rules around our power technology, public interaction, public engagement is key, we don't have all the answers in Washington never have, and we can't begin to just start blindly putting out in rules and chat without without engagement. So that's critical. The second thing really think about is a is a cost benefit analysis around the way that the impact of this particular regulation will have on artificial intelligence, we want people to think very carefully around the benefits and costs associated with actually, you know, regulating or slowing down the promulgation of this and this way, we want to create regulations which are flexible, as you all know, as changing the type of AI that was baked into products just three years ago is materially different than today is going to be materially different than three years from now. So if we start putting in regulations today that aren't applicable years from now, we're We're going to be stifling innovation in the end. And ultimately, and I think the third big pillar that sort of underlies these principles is around these Miss American values question of civil liberties of non discrimination of safe, trustworthy artificial intelligence. We want to make sure that our agencies are creating regulations we can engender trust in Americans as they use them. So long answer but we're absolutely thrilled to be kind of the first in the world actually to put out guidance from a from a government with binding applicability on on AI.

 
Tiffany Moore 

Thank you. Well, you can't have a conversation about artificial intelligence without talking about bias. We use AI here at CES, the chat bots, Facebook, hope you all have the CES app. But we are using that technology. But it's important for us to be transparent, and bias it's baked in will be do a harm for all to all of us. And so there was even a recent NIST study that took a look at and underscore that there there are clear, valid concerns about bias and so how are you all approaching that from a federal government standpoint I know that's something that's important and baked in kind of very much. So

 
Michael Kratsios 

Yeah, so these principles actually explicitly call on agencies to be considering issues relating to bias, non discrimination, safety and trustworthiness when they approach regulations associated with AI. And then I always say it's kind of a, there's still a lot of work left to be done. And part of the work necessary to ensure that we can make we can we can ensure that going forward, these algorithms will be safe and trustworthy, robust is, is core r&d is still necessary. And I think one of the greatest examples I always give is this question of AI explain ability. I think, as a regulator who hasn't thought about it a lot. It's very easy to say, oh, wouldn't it be great to just put a rule that says if you're going to use AI, make sure it's explainable, and everyone knows what's going on, there will be no issues. The reality is there is no technical solution yet to explain ability and that is why we as a federal government, investing money and expandability related research and DARPA and so on are just doing great research on this domain. And once we have this better technology, we can actually create regulations which provide trustworthiness that that Americans deserve.

 
Tiffany Moore 

Thank you. Now this is an international audience and we like to compete. So if we look at kind of competition globally, as we look at AI, where do we stack up? Like, where are we, where we, you know, and you've done a lot of work with the g7. OECD, as you look at AI globally, kind of where it is, whereas the US

 
Michael Kratsios 

Well, the US is leading the world and I think the easiest way to sort of think about it from a calm standpoint is our executive order launcher national strategy was titled maintaining American leadership, we are quite explicit that we are leading the world and our efforts are to ensure that leadership Now what does that leadership position look like? We have the the best universities in the world by far. We have the most dollars are invested in early stage startups relating to artificial intelligence. We have the most highly cited or the best research that comes out for AI in the world. And the list goes on and on. And I think for us, we're extremely excited, but it's something that that isn't really something we worry too much about. I think the real question is, how do we continue to think about what tools the federal government has to augment and support The Extraordinary private sector and academic community that we have to drive them to do better, more impressive research and the entire sort of underpinning of a national strategy is what tools the federal government have that can turbocharged are very unique, free market driven innovation ecosystem here in the United States.

 
Tiffany Moore 

Thank you so much, Michael, for the conversation. Thank you. Please join me in thanking Michael

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