A new Senate bill, the Preserving American Dominance in AI Act of 2024 (S.5616), has reignited debate over its provisions, particularly its push to impose “know-your-customer” (KYC) rules on cloud service providers and data centers. Critics warn that these measures could lead to sweeping surveillance practices and unprecedented invasions of privacy under the guise of regulating artificial intelligence.
KYC regulations require businesses to verify the identities of their users, and when applied to digital platforms, they could significantly impact privacy by linking individuals’ online activities to their real-world identities, effectively eliminating anonymity and enabling intrusive surveillance.
The legislation, spearheaded by outgoing Senator Mitt Romney (R-Utah) and co-sponsored by a bipartisan group of lawmakers, seeks to establish an AI oversight office within the Department of Commerce.
Among its many regulatory demands, the bill would require cloud providers—especially those offering Infrastructure-as-a-Service—to verify the identities of customers involved in transactions with foreign individuals.
