Eric Schmidt, Co-Founder, Schmidt Futures, speaks throughout the Milken Institute Global Conference on May 2, 2022 in Beverly Hills, California.
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Sen Elizabeth Warren on Tuesday pushed Defense Secretary Lloyd Austin about his company’s enforcement of conflict-of-interest guidelines for federal boards of advisers, zeroing in on previous Google CEO Eric Schmidt after CNBC reported on his previous participation on prominent panels in a market where he was a financier.
“Federal advisory boards can provide valuable advice and insights to federal agencies, but without strong oversight and clear guardrails they can also provide their board members an unfair competitive advantage in winning government contracts and influencing agency policy,” Warren composed in a letter to the DOD head.
Warren stated she was worried about reports declaring Schmidt leveraged his positions on 2 federal advisory committees “to further his own personal financial interests.” Those reports might recommend the Defense Department did not effectively use federal dispute of interest guidelines “and therefore failed to protect the public interest” in Schmidt’s case, composed the Massachusetts Democrat.
Warren, who rests on the Senate Armed Services Committee and leads congressional subcommittees on financial policy and financial obligation, asked Austin to information the Pentagon’s conflict-of-interest policy for board of advisers members and address numerous concerns about Schmidt’s service on the panels.
Schmidt made more than 50 direct individual or indirect business financial investments in AI business while he was acting as the chairman of the National Security Commission on Artificial Intelligence, or NSCAI, she stated, pointing out a CNBC short article fromOctober The group, developed in 2018, encouraged the Pentagon and White House on AI policy– even crafting legal language that later on passed word for word– and assisted guide billions of dollars in costs towards the AI market. The group unwinded in 2021.
Walter Shaub, a senior principles fellow at the Project on Government Oversight, informed CNBC at the time that Schmidt’s financial investments “absolutely” postured a dispute of interest. There was no indicator that Schmidt broke any principles guidelines or did anything illegal while chairing the commission.
Warren’s letter referenced Schmidt’s deal with the NSCAI and the Defense InnovationBoard Both boards of advisers undergo conflict-of-interest guidelines under the Federal Advisory Committee Act.
“These boards can exert significant influence in shaping government research and procurement priorities, making it essential that agencies prevent and mitigate conflicts of interest,” the senator composed. “I am concerned by press reports indicating the Department may not have adequately followed FACA conflict of interest rules and therefore failed to protect the public interest.”
The NSCAI under Schmidt promoted for a significant increase in federal government costs on AI. “But Mr. Schmidt has a clear conflict of interest in this issue: the NSCAI recommendations could direct funds to Mr. Schmidt and his business partners, who have invested more than $2 billion in companies focused on artificial intelligence,” Warren composed, pointing out reporting from Protocol.
“Mr. Schmidt’s investment activities, and the lack of public disclosure, create the appearance that these boards are yet another tool for influence-peddling and profiteering at DoD, raising concerns about the ethics of their members and the utility of their recommendations,” Warren composed.
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