The National Security Threat Posed by Data Commodification and AI

The commodification of data, including highly personal data, has been a driving force behind the growth of the U.S. economy for decades. However, with the rise of artificial intelligence (AI), new national security threats have emerged due to the lack of a comprehensive federal privacy law. Authoritarian states like China have been taking advantage of the U.S. commercial data market to gather data on social media users, monitor public opinion, track dissidents, and anticipate threats to their regime.

The Biden administration’s recent actions addressing Chinese-made electric vehicles (EVs) highlight the limited capacity of the U.S. to mitigate risks related to data security. While policies have been enacted to address economic competitiveness concerns around EVs, the rapid growth of Chinese-made EVs poses unique cybersecurity threats.

Modern vehicles, especially EVs, collect and transmit enormous amounts of data with little oversight. This data can be sold to commercial data brokers, aggregated, and resold, raising concerns about personal privacy and national security. The Biden administration has taken steps to investigate cybersecurity and data security concerns around connected vehicles produced by certain countries, including China.

The lack of a national data privacy regulation in the U.S. leaves the country vulnerable to unknown risks as the AI age emerges. Without clear federal standards, the data market will continue to grow, creating a range of national security risks. While the Biden administration’s efforts to address these risks are commendable, a comprehensive federal data-privacy standard is needed to protect Americans’ data and reduce the burden on the executive branch.

Until Congress acts to establish a federal data-privacy standard, the U.S. will continue to face challenges in protecting data and mitigating national security risks. The need for a comprehensive approach to data privacy is crucial as the data market expands and new AI models generate valuable insights from personal data.