AI–WISE Act

Bill Number: H.R. 5784
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Commerce
Status: Passed House
Latest Action: 2026-01-26: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Last Updated: 2026-06-11T05:06:21Z

AI-Generated Summary

Purpose

The AI-WISE Act (H.R. 5784) aims to support small businesses in understanding and safely using artificial intelligence (AI) tools. It does this by requiring the Small Business Administration (SBA) to create free educational resources to help small business owners evaluate AI's benefits, risks, and practical applications.

Key Provisions

Educational Resources Requirement: The SBA must develop and maintain online modules and resources on AI, hosted on its existing learning platform. These must be established within 180 days of the Act's enactment.
Content of Resources: The materials will cover practical topics, including:
How AI models function, their limitations, and how these affect results.
Detecting if software outputs were created using AI.
Staying informed about AI advancements and user policies/terms.
Best practices for working with AI providers, managing risks, protecting user privacy, and keeping humans involved in key decisions.
Identifying tasks AI can handle effectively to boost operations, productivity, or customer service.
Deciding if an AI tool meets a business need and is worth using.
Accuracy and Updates: The SBA must ensure content is accurate and up-to-date by consulting the National Institute of Standards and Technology (NIST, a federal agency focused on technology standards) and an Advisory Working Group.
Advisory Working Group: This group will advise on content and includes experts in AI (from private sector, academia, organizations ensuring reliable and privacy-protecting AI, and AI education creators) and small business outreach (from SBA resource partners like Small Business Development Centers, district offices, and business associations). The group is exempt from the Federal Advisory Committee Act (FACA, a law governing federal advisory committees to prevent conflicts), allowing more flexible operations. Vacancies are filled similarly to initial appointments.
Incorporation of Existing Materials: The SBA can use relevant information from SBA resource partners and private entities.
Dissemination and Customization: The SBA must work with resource partners to promote the resources. Partners can create tailored, localized training based on community-specific AI uses.
Neutrality and Accessibility: Content must be practical, easy to understand for non-experts, and impartial—no favoritism toward specific AI tools, models, or companies.
Definition of AI: Uses the existing federal definition from the 2021 National Defense Authorization Act, which covers systems that perform tasks requiring human-like intelligence, such as learning or decision-making.
Funding: No new money is authorized; implementation must use existing SBA funds (complying with the Congressional Budget and Impoundment Control Act's pay-as-you-go rules, or CUTGO).

Significant Changes to Existing Law

Amends the Small Business Act (the main U.S. law supporting small businesses) by adding a new Section 49 on AI education, while redesignating the prior Section 49 as Section 50.
Introduces the first federal mandate for SBA-specific AI guidance tailored to small businesses, building on but not altering broader AI policies or regulations.

Potential Impacts

On Government Agencies: The SBA gains new responsibilities to build and update AI resources, form an advisory group, and coordinate outreach, all within its current budget. This may strain resources short-term but promotes efficiency in small business support. NIST provides input without added duties. Resource partners (e.g., local SBA affiliates) will help spread awareness and customize content, potentially enhancing their role.
On Citizens/Small Businesses: Empowers over 30 million U.S. small businesses with free, accessible tools to adopt AI confidently, potentially improving competitiveness, productivity, and risk management (e.g., avoiding privacy breaches). It focuses on voluntary education, not mandates.
On International Relations: Minimal direct impact, as the Act is domestic and U.S.-focused, though it could indirectly support U.S. small businesses in global markets by fostering AI literacy.

Main Stakeholders Affected

Small Business Owners and Concerns: Primary beneficiaries, gaining tools to evaluate and integrate AI without needing technical expertise.
Small Business Administration (SBA): Responsible for implementation, maintenance, and coordination.
SBA Resource Partners: Organizations like Small Business Development Centers (SBDCs), SCORE (mentoring network), and Women's Business Centers, which will promote and adapt the resources.
Advisory Working Group Members: AI and small business experts from private sector, academia, nonprofits, and associations, who provide ongoing input.
National Institute of Standards and Technology (NIST): Consulted for accuracy on AI technical matters.

Notable Legal, Constitutional, or Political Implications

Legal: Creates a streamlined advisory process by exempting the working group from FACA, reducing administrative burdens (e.g., no public meetings or reports required) while ensuring diverse expertise. Relies on existing AI definitions to avoid new regulatory complexity. Enforceability is through SBA's standard operations, with no penalties specified for non-compliance.
Constitutional: No significant issues; aligns with Congress's authority to regulate commerce and support small businesses under the Commerce Clause. Does not infringe on free speech, privacy, or states' rights.
Political: Represents a bipartisan, low-cost approach to AI policy, emphasizing education over regulation or funding. It could bridge divides by focusing on small business innovation without favoring big tech, potentially setting a model for future AI legislation amid rapid tech changes.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Scholten, Hillary J. [D-MI-3]

Cosponsors (6)

Rep. Downing, Troy [R-MT-2], Rep. Gottheimer, Josh [D-NJ-5], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Goodlander, Maggie [D-NH-2], Rep. Amo, Gabe [D-RI-1]

Recent Actions

2026-01-26: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
2026-01-20: Motion to reconsider laid on the table Agreed to without objection.
2026-01-20: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H934-935)
2026-01-20: Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by voice vote. (text: CR H934-935)
2026-01-20: DEBATE - The House proceeded with forty minutes of debate on H.R. 5784.
2026-01-20: Considered under suspension of the rules. (consideration: CR H934-936)
2026-01-20: Mr. Williams (TX) moved to suspend the rules and pass the bill.
2025-12-12: Placed on the Union Calendar, Calendar No. 353.
2025-12-12: Reported by the Committee on Small Business. H. Rept. 119-405.
2025-12-12: Reported by the Committee on Small Business. H. Rept. 119-405.
2025-11-18: Ordered to be Reported by the Yeas and Nays: 27 - 0.
2025-11-18: Committee Consideration and Mark-up Session Held
2025-10-17: Referred to the House Committee on Small Business.
2025-10-17: Introduced in House
2025-10-17: Introduced in House

Bill Versions

Artificial Intelligence Wisdom for Innovative Small Enterprises Act — issued 2026-01-20 — PDF (10 pages)
Artificial Intelligence Wisdom for Innovative Small Enterprises Act — issued 2025-10-17 — PDF (9 pages)
Artificial Intelligence Wisdom for Innovative Small Enterprises Act — issued 2026-01-26 — PDF (9 pages)
Artificial Intelligence Wisdom for Innovative Small Enterprises Act — issued 2025-12-12 — PDF (12 pages)