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Hensey Fenton specializes in providing advice and guidance to clients on legislative and regulatory strategies. Hensey counsels clients on a myriad of issues in the policy and regulatory space, including issues involving cybersecurity, financial services, artificial intelligence, digital assets, international trade and development, and tax.

Another facet of Hensey’s practice involves cutting-edge legal issues in the cybersecurity space. Having published scholarly work in the areas of cybersecurity and cyberwarfare, Hensey keeps his finger on the pulse of this fast-developing legal field. His Duke Journal of Comparative & International Law article, "Proportionality and its Applicability in the Realm of Cyber Attacks," was highlighted by the Rutgers Computer and Technology Law Journal as one of the most important and timely articles on cyber, technology and the law. Hensey counsels clients on preparing for and responding to cyber-based attacks. He regularly engages with government and military leaders to develop national and global strategies for complex cyber issues and policy challenges.

Hensey’s practice also includes advising international clients on various policy, legal and regulatory challenges, especially those challenges facing developing nations in the Middle East. Armed with a distinct expertise in Middle Eastern foreign policy and the Arabic language, Hensey brings a multi-faceted approach to his practice, recognizing the specific policy and regulatory concerns facing clients in the region.

Hensey is also at the forefront of important issues involving Diversity, Equity and Inclusion (DEI). He assists companies in developing inclusive and sustainable DEI strategies that align with and incorporate core company values and business goals.

Prior to joining Covington, Hensey served as a Judicial Law Clerk for the Honorable Judge Johnnie B. Rawlinson, United States Court of Appeals for the Ninth Circuit. He also served as a Diplomatic Fellow in the Kurdistan Regional Government’s Representation (i.e. Embassy) in Washington, DC.

This quarterly update summarizes key legislative and regulatory developments in the fourth quarter of 2022 related to Artificial Intelligence (“AI”), the Internet of Things (“IoT”), connected and autonomous vehicles (“CAVs”), and data privacy and cybersecurity.

Artificial Intelligence

In the last quarter of 2022, the annual National Defense Authorization Act (“NDAA”), which contained AI-related provisions, was enacted into law.  The NDAA creates a pilot program to demonstrate use cases for AI in government. Specifically, the Director of the Office of Management and Budget (“Director of OMB”) must identify four new use cases for the application of AI-enabled systems to support modernization initiatives that require “linking multiple siloed internal and external data sources.” The pilot program is also meant to enable agencies to demonstrate the circumstances under which AI can be used to modernize agency operations and “leverage commercially available artificial intelligence technologies that (i) operate in secure cloud environments that can deploy rapidly without the need to replace operating systems; and (ii) do not require extensive staff or training to build.” Finally, the pilot program prioritizes use cases where AI can drive “agency productivity in predictive supply chain and logistics,” such as predictive food demand and optimized supply, predictive medical supplies and equipment demand, predictive logistics for disaster recovery, preparedness and response.

At the state level, in late 2022, there were also efforts to advance requirements for AI used to make certain types of decisions under comprehensive privacy frameworks.  The Colorado Privacy Act draft rules were updated to clarify the circumstances that require controllers to provide an opt-out right for the use of automated decision-making and requirements for assessments of profiling decisions.  In California, although the California Consumer Privacy Act draft regulations do not yet cover automated decision-making, the California Privacy Protection Agency rules subcommittee provided a sample list of related questions concerning this during its December 16, 2022 board meeting.

Continue Reading U.S. AI, IoT, CAV, and Privacy Legislative Update – Fourth Quarter 2022

On January 5, 2021, the CFPB’s (the “Bureau”) Taskforce on Federal Consumer Financial Law (the “Taskforce”) released a report (the “Report”) recommending how consumer protection in the financial marketplace may be improved.  Chartered by the Bureau in January of 2020, the Taskforce was charged with “examin[ing] the existing legal and regulatory environment facing consumers and

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