Calls Grow For A Federal AI Incident Database As Corporate Risk Concerns Mount

Support is building for a national AI incident database to track failures and near-misses, as companies, regulators and researchers seek clearer visibility into emerging risks.

Key points:

  • AI governance groups are urging the U.S. to create a centralized database to track serious AI failures.
  • Supporters argue incident reporting could improve safety, trust and legal defensibility.
  • Skeptics warn overly broad mandates could increase compliance costs and litigation risk.

The push for stronger oversight of artificial intelligence is moving beyond principles and into infrastructure, as support grows for a federal database to track when AI systems fail. Advocates say a centralized reporting mechanism could help companies, regulators and the public identify emerging risks before they escalate.

The proposal, detailed in a recent Bloomberg Law report, draws comparisons to long-standing federal systems that track aviation accidents and medical-device failures. The idea is to create a similar national repository for AI incidents, allowing organizations to report breakdowns, near-misses and high-consequence events.

The Future Society, an AI governance nonprofit, is among the groups advocating for the database. Its U.S. AI governance director, Caroline Jeanmarie, argues that the absence of centralized reporting prevents companies from learning from one another’s failures. Without shared data, she said, organizations are left to manage risks in isolation, deepening what she described as a “trust deficit” around AI systems.

Momentum is building as AI-related incidents increase. Data compiled by the Organisation for Economic Co-operation and Development shows reported AI incidents rose by nearly 50% between April and October, according to the OECD’s publicly available AI incident monitoring initiative. High-profile missteps in the U.S. have included private conversations with large language models appearing in search results and autonomous agents taking unintended actions.

Under the proposal, reporting obligations would be tiered. Mandatory disclosures would apply to high-impact events involving deaths, critical infrastructure disruptions or chemical, biological, radiological or nuclear risks. Lower-level issues, such as operational failures or near-misses, would be reported voluntarily, creating a broader dataset without imposing uniform mandates.

The concept aligns with language in the White House’s AI Action Plan, which calls for incorporating AI incident response into existing public- and private-sector frameworks. The plan states that the federal government should promote standardized approaches to AI incident response, signaling openness to more formal reporting mechanisms.

Not everyone is convinced. Adam Thierer, a senior fellow at the R Street Institute, cautioned that overly expansive disclosure requirements could burden developers and produce low-value information. He also warned that mandatory reporting could expose companies to litigation risk if incident data is later used against them.

Proponents counter that transparency can reduce, rather than increase, legal exposure. Jeanmarie argues that companies participating in industry-wide safety monitoring can demonstrate reasonable care and due diligence if disputes arise, particularly where they can show they learned from reported incidents and improved their systems.

Industry executives see parallels with cybersecurity. Ben Colman, CEO of deepfake detection firm Reality Defender, noted that hidden breaches tend to surface eventually, often to the detriment of consumers and responsible actors. In his view, disclosure requirements would encourage better behavior across the AI supply chain by making failures harder to conceal.

Researchers echo that point. Sean McGregor, who helped launch the open-source AI Incident Database, argues that consistent government-backed data collection is essential for public trust. Without it, he said, the actions of the least responsible companies risk shaping perceptions of the entire sector.

 

Customer Stories

See how leading enterprise in-house teams have scaled smarter with Legal.io's high-caliber flex talent.

More from Legal.io


Kellye Walker Named Deere & Co. SVP, CLO and Head of Worldwide Public Affairs
Kellye Walker Named Deere & Co. SVP, CLO and Head of Worldwide Public Affairs

Kellye Walker is the new SVP, CLO, and Head of Worldwide Public Affairs at Deere & Company, succeeding Mary Jones who is retiring after 27 years.

Apr 04, 2024
Read More
GCs Face Emerging Risk: Political Polarization
GCs Face Emerging Risk: Political Polarization

Polarization is increasingly fueled by social media and economics.

Feb 14, 2024
Read More
Dealing with 221(g) Issues from the Consulate
Dealing with 221(g) Issues from the Consulate

In this week’s article, we explore one common issue that happens to non-citizens seeking entry into the United States from abroad.

Aug 19, 2015
Read More
Supreme Court Allows Corporate Transparency Act Enforcement

The Supreme Court lifts an injunction, allowing enforcement of the Corporate Transparency Act, while legal debates over its constitutionality continue in the 5th Circuit.

Jan 27, 2025
Read More
Ready to hire?

Schedule a free consultation to discuss your hiring needs.

Free 15-min consultation
Legal.io Platform
5 star reviews
Hiring made smarter

Easy-to-use platform for hiring legal talent, managing spend, and optimizing your panel — plus an average savings of 50%.

Need Immediate Help?

Submit a hiring request and let our experts handle the entire process for you.