The following terms are defined for use throughout the remainder of this document:

  • (a) an “artificial intelligence” or “AI” system is a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments. Artificial intelligence systems use machine- and human-based inputs to perceive real and virtual environments; abstract such perceptions into models through analysis in an automated manner; and use model inference to formulate options for information or action1;
  • (b) a “first-party developer” is any legal person with direct involvement in the design, coding, training, or other development of an AI system2;
  • (c) a “third-party procurer” is any legal person that purchases, licenses, or otherwise acquires an AI system from a first-party developer;
  • (d) a “sensitive application” is the use of AI to determine eligibility or otherwise furnish a legal person with goods or services related to housing, healthcare, financial services, or employment;
  • (e) a “model” is any computational object that takes in data and outputs a result based on data that it has previously observed;
  • (f) “training” is the process of using a dataset to learn the parameters or otherwise build a model;
  • (g) a “training dataset” is any collection of data that is used to train a model;

  1. The definition of artificial intelligence is taken from the Biden administration’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (EO 14110). ↩

  2. First-party developers do not include entities that acquire datasets that are used by other entities for training models. ↩

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