AI Blind Spot: National Security Laws & Critical Infrastructure

Our national security laws face a significant challenge regarding artificial intelligence. While current regulations effectively prevent hostile ownership of critical assets, they struggle with AI capabilities that are rented, not owned. Our foreign investment regime and the Security of Critical Infrastructure Act are designed to safeguard transport, energy, and water infrastructure by screening ownership, investment, or control. This system allows for government intervention to protect these vital assets. However, a foreign AI provider could gain influence over this infrastructure without any direct purchase. The rapid rise of AI has revealed this vulnerability. The core issue is that existing laws are less equipped to deal with AI services influencing infrastructure without traditional ownership. This matters because it highlights a gap in protecting critical national assets from evolving threats.