SBA Artificial Intelligence Utilization Act of 2026

119th Congress Introduced by Brad Finstad and 1 co-sponsor

The act requires annual SBA reports and briefings detailing how AI/ML are used, their benefits and risks, and steps to manage those risks with human oversight.

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

Overview

HR 8881, the SBA Artificial Intelligence Utilization Act of 2026, would amend the Small Business Act to require the Small Business Administration (SBA) to produce annual reports on how it uses artificial intelligence (AI) and machine learning (ML). The bill also directs accompanying briefings to congressional committees and defines key terms for the reporting requirements.

Purpose and intent

Establish systematic accountability and transparency regarding the SBA’s use of AI and ML in its operations.

Help Congress assess benefits, risks, and governance approaches related to AI/ML use within the SBA.

Encourage thoughtful consideration of human involvement, task suitability, and tool selection in AI-enabled processes.

Key provisions and changes

Section amended: Section 10(c) of the Small Business Act.

Reporting requirements (annual, with an initial 90-day trigger):

The SBA Administrator must submit to:
Committee on Small Business (House)
Committee on Small Business and Entrepreneurship (Senate)
Content of each report:
(A) Describes the SBA’s use of AI/ML in its work.
(B) Evaluates the benefits and risks posed by AI/ML use, including potential impediments to SBA operations.
(C) Outlines measures the Administrator can take to identify, evaluate, and manage benefits and risks, including:
- (i) Maintaining human involvement in important decisions informed by AI/ML recommendations.
- (ii) Identifying tasks/functions AI/ML can reliably perform and whether AI/ML can improve operations, productivity, or customer service.
- (iii) Determining which specific AI/ML tools are appropriate for a given task/function.
- (iv) Assessing whether an AI/ML tool adequately fills a need and is worth adopting.

Briefing requirement:

Within 30 days after submitting each report, the Administrator must provide a briefing to the same committees detailing the report’s contents.

Definitions:

The terms “artificial intelligence” and “machine learning” are to be understood as defined in section 5002 of the 2021 National Defense Authorization Act (reference to Thornberry NDAA FY2021).

Who/what would be affected

Primarily the SBA and its operational processes that involve AI/ML tools and systems.

Congressional committees overseeing small business policy (House Committee on Small Business; Senate Committee on Small Business and Entrepreneurship) for reporting and briefings.

Stakeholders relying on SBA programs and services that may be affected by AI-enabled workflows or decision-making processes.

Procedural and timeline aspects

Initial reporting deadline: Not later than 90 days after enactment of this section.

Subsequent reports: Annually thereafter.

Briefings: Due within 30 days after each report is submitted.

Status and actions: The bill has been reported by the House Committee on Small Business (H.Rept. 119-681) and placed on the Union Calendar. Sponsors include Rep. Brad Finstad and Rep. George Latimer.

Potential impact and considerations

Increases transparency around the SBA’s use of AI/ML, including how such tools affect decisions, operations, and customer service.

Encourages governance practices to retain human oversight in AI-informed decisions.

Prompts careful assessment of where AI/ML adds value versus where it may be unreliable or risky.

Could influence SBA procurement and deployment of AI/ML technologies, given the emphasis on task suitability and tool selection.

Provides a structured framework for ongoing oversight of AI/ML adoption within a federal small business agency.