Technical corrections only. The differences between v3 and v4 reflect the bill's procedural status update from having passed the House to being referred to the Senate, including the addition of the House Clerk's name. No substantive policy changes were made to the text of the bill.
AI–WISE Act
- Sponsor
- Rep. Scholten, Hillary J. [D-MI-3]
- Committees
- Small Business Committee (primary)
- Last action
- Jan 26, 2026
Bottom line
The AI-WISE Act aims to equip small businesses with critical knowledge and resources to effectively evaluate, adopt, and manage artificial intelligence tools, fostering informed decision-making and mitigating potential risks.
What it actually does
This bill amends the Small Business Act to mandate that the Small Business Administration (SBA) establish and maintain online educational resources and modules for small business concerns regarding artificial intelligence (AI) tools. These resources will cover topics such as how AI models work, identifying AI-generated outputs, managing AI risks, ensuring user privacy, and retaining human involvement in AI-informed decisions. The bill also establishes an expert Advisory Working Group to ensure the accuracy and currency of these materials.
Proponents argue
Supporters argue that small businesses often lack the resources and expertise to navigate the rapidly evolving landscape of AI. This bill provides essential, accessible education, helping them leverage AI for productivity and growth while protecting against risks like data privacy breaches or over-reliance on automated decisions. It levels the playing field for small businesses against larger competitors by democratizing access to crucial technological understanding.
Opponents contend
Critics might contend that the SBA is not the most agile or expert agency to develop rapidly evolving AI educational content, potentially leading to outdated or generic resources. They might also argue that the private sector or existing industry groups are better equipped to provide such specialized training, and that government involvement could stifle innovation or create unnecessary bureaucracy, especially given the budget-neutral mandate.
The bill is concise and easily digestible, allowing for a quick understanding of its core purpose and provisions.
Section 2(a) and (b), inserting new Section 49(a) and (b) into the Small Business Act.
Mandate for SBA to Create AI Educational Resources
This provision directs the Small Business Administration (SBA) to create and maintain online educational resources and modules specifically for small businesses. These resources will provide information on how AI tools function, their limitations, how to identify AI-generated content, best practices for coordinating with third-party AI providers, and how to assess if an AI tool meets a business need, among other topics.
Supporters argue
Supporters argue this provision is crucial for democratizing access to AI knowledge, enabling small businesses to make informed decisions about adopting AI, thereby enhancing their competitiveness and operational efficiency in a technology-driven economy.
Critics contend
Critics might argue that the content could become quickly outdated given the rapid pace of AI development, or that the SBA may not have the specialized expertise to create truly cutting-edge and relevant materials, potentially leading to generic or less useful resources.
Tradeoffs
The tension lies between the need for accessible, reliable AI education for small businesses and the challenge of keeping government-produced content current and relevant in a fast-evolving technological field.
Section 2(a) and (c), inserting new Section 49(c) into the Small Business Act.
Ensuring Accuracy and Expert Consultation for AI Resources
This section mandates that the SBA Administrator ensure the AI educational resources are factually accurate and current. To achieve this, the Administrator must consult with the Director of the National Institute of Standards and Technology (NIST) and an Advisory Working Group. This group will comprise experts from academia, the private sector, AI ethics organizations, and small business outreach, tasked with identifying and recommending relevant information.
Section 2(a) and (d), inserting new Section 49(d) into the Small Business Act.
Leveraging Resource Partners for AI Education Dissemination
This provision directs the SBA Administrator to coordinate with existing "resource partners" (such as Small Business Development Centers, SCORE, Women's Business Centers) to raise awareness about the new AI educational resources. It also allows these partners to develop specialized and localized training materials, incorporating AI uses relevant to their specific communities, to more effectively disseminate the information.
This provision exempts the Advisory Working Group established under the Act from the requirements of the Federal Advisory Committee Act (FACA).
Section 2(a) and (c)(2)(E), inserting new Section 49(c)(2)(E) into the Small Business Act.
Why it matters:This is a common legislative practice to streamline the operation of specific advisory bodies, avoiding the often extensive procedural requirements of FACA. It's generally intended to make the group more nimble and responsive to rapidly changing fields.
Case for: Proponents argue that exempting the group from FACA allows it to operate more efficiently and respond quickly to the fast-changing AI landscape without being bogged down by bureaucratic procedures, ensuring timely and relevant advice.
Case against: Critics might argue that FACA requirements (like public meetings, balanced membership, and public access to records) are crucial for transparency and accountability. Exempting the group could reduce public oversight and potentially allow for undue influence from specific industry or academic interests.
Estimated impact: This impacts the transparency and procedural requirements of the advisory group, potentially speeding up its operations but reducing public access to its deliberations and records.
This section explicitly states that "No additional amounts are authorized to carry out this Act or the amendments made by this Act."
Section 3.
Why it matters:This is standard legislative practice for bills intended to be budget-neutral or to operate within existing appropriations, often to comply with "Cut-As-You-Go" (CUTGO) rules in the House. It signals that the activities mandated by the bill must be funded by reallocating existing resources within the SBA, rather than through new appropriations.
Case for: Proponents argue this demonstrates fiscal responsibility, ensuring the new AI education initiatives do not add to the national debt and are implemented by prioritizing existing resources.
Case against: Critics might contend that without new funding, the SBA's ability to effectively establish and maintain high-quality, up-to-date AI educational resources could be severely hampered, potentially leading to under-resourced or less effective programs. It could force cuts elsewhere within the SBA's budget.
Estimated impact: This provision means the SBA must absorb the costs of establishing and maintaining the AI educational resources and the Advisory Working Group within its existing budget, potentially requiring reallocation from other programs.