AI Wisdom for Innovative Small Enterprises Act (2025 Report)
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- Crpt 119Hrpt405
Summary
House Report 119–405 of the 119th Congress, 1st Session, submitted December 12, 2025 by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 5784, the Artificial Intelligence Wisdom for Innovative Small Enterprises Act (AI-WISE Act). The committee reports the bill favorably without amendment; it ordered the bill reported on November 18, 2025 by a roll call vote of 27 ayes to 0 nos. The report states the bill would require the SBA to provide educational resources and modules on artificial intelligence for small businesses and to establish an Advisory Working Group, consulting with NIST, with resources due within 180 days of enactment. It includes a section-by-section analysis, the required House rule statements and the text of a new SEC. 49 of the Small Business Act. The report closes with minority views signed by Ranking Member Nydia M. Velázquez.
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119TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 119–405
ARTIFICIAL INTELLIGENCE WISDOM FOR
INNOVATIVE SMALL ENTERPRISES ACT
DECEMBER 12, 2025.—Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 5784]
The Committee on Small Business, to whom was referred the bill
(H.R. 5784) to amend the Small Business Act to help small busi-
ness concerns critically evaluate artificial intelligence tools, and for
other purposes, having considered the same, reports favorably
thereon without amendment and recommends that the bill do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 2
II. Need for Legislation .................................................................................... 2
III. Hearings ....................................................................................................... 2
IV. Committee Consideration ........................................................................... 2
V. Committee Votes ......................................................................................... 2
VI. Section-by-Section of H.R. 5784 ................................................................. 4
VII. Congressional Budget Office Cost Estimate ............................................. 4
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 4
IX. Oversight Findings & Recommendations .................................................. 5
X. Performance Goals and Objectives ............................................................ 5
XI. Statement of Duplication of Federal Programs ........................................ 5
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 5
XIII. Federal Mandates Statement ..................................................................... 5
XIV. Federal Advisory Committee Statement ................................................... 5
XV. Applicability to Legislative Branch ........................................................... 5
XVI. Statement of Constitutional Authority ...................................................... 5
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XVII. Changes in Existing Law Made by the Bill, as Reported ........................ 5
XVIII. Minority Views ............................................................................................ 9
69–006
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I. PURPOSE AND BILL SUMMARY
On October 17, 2025, Representative Scholten, along with Rep-
resentative Downing, introduced H.R. 5784, the Artificial Intel-
ligence Wisdom for Innovative Small Enterprises Act or the AI-
WISE Act. H.R. 5784 requires the U.S. Small Business Administra-
tion (SBA) to provide educational resources on artificial intelligence
(AI) for small businesses. The bill would require the SBA to coordi-
nate with the National Institute of Standards and Technology
(NIST) to establish a working group that maintains AI resources
for small businesses.
II. NEED FOR LEGISLATION
The AI-WISE Act addresses the growing knowledge gap small
businesses face in understanding and adopting AI tools. Many
small businesses lack accessible and reliable guidance on how AI
could benefit their business, the opportunities it presents for im-
proving operations and competitiveness, as well as some potential
risks associated with adopting AI. This bill would require the SBA
Administrator to establish educational resources and online learn-
ing modules dedicated to AI that small businesses can easily ac-
cess.
This bill directs the SBA Administrator to coordinate an advisory
working group with NIST. The working group would be comprised
of experts in the AI space, and local resource partners to keep
these materials accurate and widely accessible to all small busi-
nesses. The resources available will cover key areas such as privacy
protection, risk management, and best practices for AI adoption.
Small businesses will be able to gain the tools they need to
evaluate and adopt AI based on what works best for their specific
business directly from the SBA. With AI rapidly reshaping the
economy, small businesses must be able to keep pace to remain
competitive. The AI-WISE Act ensures that small businesses are
not left behind by the SBA, providing existing knowledge to har-
ness AI for growth, efficiency, and innovation.
III. HEARINGS
On February 5, 2025, the Committee on Small Business held a
hearing examining matters related to H.R. 5784 entitled ‘‘Hope on
the Horizon: Prioritizing Small Business Growth in the 119th Con-
gress.’’
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on November 18, 2025, and ordered H.R.
5784, to be reported favorably to the House of Representatives by
a roll call vote of 27 ayes to 0 nos.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
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voted to favorably report H.R. 5784 to the House of Representatives
at 11:45 AM.
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VI. SECTION-BY-SECTION OF H.R. 5784
Section 1—Short title
This Act may be cited as the ‘‘Artificial Intelligence Wisdom for
Innovative Small Enterprises Act,’’ or the ‘‘AI-WISE Act.’’
Section 2—Artificial intelligence educational resources and modules
for small business concerns
This section requires the SBA to establish and maintain edu-
cational resources and modules for small businesses about AI tools.
These resources must be made publicly available on an SBA online
learning platform. The resources include information on how AI
models work, privacy protection, risk management, human over-
sight, and practical applications for improving operations, produc-
tivity, and customer service.
This section requires the SBA to consult with NIST and estab-
lishes an advisory working group that will include AI experts from
the private sector, academia, and SBA Resource Partners. This
group would advise on relevant and existing information to include
in the SBA’s educational resources and modules.
This section further requires coordination with resource partners
to disseminate the materials, including developing specialized or lo-
calized training resources. The materials must be actionable, easy
to understand, and neutral regarding specific AI tools and pro-
viders.
The SBA Administrator must establish these resources and mod-
ules within 180 days of enactment.
Section 3—Compliance with Cutgo
No additional funds are authorized to carry out the requirements
in this bill.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its own the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to section 402 of the Congressional Budget Act of 1974. At the
time this report was filed, the Committee has requested but not re-
ceived a cost estimate from the Director of the Congressional Budg-
et Office.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. While the Committee has not received an
estimate of new budget authority contained in the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to section 402 of the Congressional Budget Act of 1974, the
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Committee does not believe that there will be any new or increased
costs attributable to this legislation.
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IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in H.R. 5784
are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the goal of H.R. 5784
is to provide resources to small businesses about AI.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 5784 is known to be dupli-
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
AND LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee will adopt as its own the estimate of the Federal
mandates prepared by the Director of the Congressional Budget Of-
fice pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
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In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
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as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
and existing law in which no change is proposed is shown in
roman):
SMALL BUSINESS ACT
* * * * * * *
SEC. 49. ARTIFICIAL INTELLIGENCE EDUCATIONAL RESOURCES AND
MODULES FOR SMALL BUSINESS CONCERNS.
(a) IN GENERAL.—The Administrator shall—
(1) establish and maintain educational resources and mod-
ules for small business concerns with information on artificial
intelligence tools; and
(2) make such educational resources and modules publicly
available on an existing online learning platform of the Admin-
istration.
(b) CONTENTS.—The educational resources and modules estab-
lished under subsection (a) shall include, to the extent practicable,
information on—
(1) how artificial intelligence models work, including the lim-
its of the capabilities of such models, and how such limits affect
the outputs of such tools;
(2) how to determine if software outputs are generated with
the use of artificial intelligence;
(3) how to remain updated on the emergence, development,
and technological maturation of artificial intelligence;
(4) how to understand and remain updated on the policies,
terms, and conditions applicable to users of artificial intel-
ligence;
(5) best practices in coordinating with third-party providers
of artificial intelligence tools;
(6) how to effectively identify, evaluate, and manage the risks
of artificial intelligence;
(7) how to ensure the privacy of user inputs to artificial intel-
ligence tools;
(8) how to retain human involvement in important decisions
informed by recommendations made by artificial intelligence;
(9) how to identify tasks and functions that artificial intel-
ligence can reliably and effectively perform, including whether
artificial intelligence can improve operations, productivity, or
customer service; and
(10) how to determine whether an artificial intelligence tool
adequately fills a need and is worth adopting.
(c) ACCURACY AND MAINTENANCE.—
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(1) IN GENERAL.—To the extent practicable, the Administrator
shall ensure that the information contained in the educational
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resources and modules established under subsection (a) is factu-
ally accurate and current, including by consulting with—
(A) the Director of the National Institute of Standards
and Technology; and
(B) the Advisory Working Group established under para-
graph (2).
(2) ADVISORY WORKING GROUP.—
(A) ESTABLISHMENT.—The Administrator shall establish
a working group (in this paragraph referred to as the ‘‘Ad-
visory Working Group’’) with which the Administrator shall
consult on an ongoing basis regarding the information con-
tained in the educational resources and modules estab-
lished under subsection (a).
(B) DUTIES.—The duties of the Advisory Working Group
shall include the identification and recommendation of rel-
evant information to the Administrator for inclusion in the
educational resources and modules established under sub-
section (a).
(C) MEMBERS.—The Advisory Working Group shall be
comprised of the following members, who shall be selected
by the Administrator:
(i) Individuals with demonstrated expertise in artifi-
cial intelligence, including—
(I) not less than one individual from the private
sector;
(II) not less than one individual from academia;
(III) not less than one individual from an orga-
nization with demonstrated expertise in ensuring
artificial intelligence outputs—
(aa) are reliable, secure, transparent, and
not used for illegal purposes; and
(bb) which protect user privacy; and
(IV) not less than one individual with dem-
onstrated expertise in the creation of educational
or professional development materials regarding
artificial intelligence.
(ii) Individuals with demonstrated expertise in out-
reach to small business concerns, including—
(I) not less than one individual from each re-
source partner;
(II) not less than one individual from a district
office of the Administration; and
(III) not less than one individual from an asso-
ciation representing small business concerns.
(D) VACANCIES.—Any vacancy in the Advisory Working
Group shall be filled in the same manner as the original
appointment.
(E) INAPPLICABILITY OF FACA.—The requirements of chap-
ter 10 of title 5, United States Code, shall not apply to the
Advisory Working Group established under this paragraph.
(3) INCORPORATION OF INFORMATION IN EDUCATIONAL RE-
SOURCES AND MODULES.—In establishing and maintaining the
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educational resources and modules under subsection (a), the
Administrator—
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(A) shall consider relevant, existing information devel-
oped by resource partners;
(B) may consider relevant, existing information developed
by private entities; and
(C) may incorporate information described in subpara-
graphs (A) and (B) into such educational resources and
modules.
(d) RESOURCE PARTNER INVOLVEMENT.—
(1) IN GENERAL.—The Administrator shall coordinate with re-
source partners to disseminate information to raise the aware-
ness of small business concerns about availability of the edu-
cational resources and modules established under subsection
(a).
(2) SPECIALIZED AND LOCALIZED EDUCATIONAL RESOURCE DE-
VELOPMENT.—Resource partners may develop specialized and
localized training resources to more effectively disseminate the
information in the educational resources and modules estab-
lished under subsection (a), including by incorporating infor-
mation on uses of artificial intelligence tools common to the
community served by such resource partner.
(e) MANNER.—The Administrator shall ensure that the informa-
tion in the educational resources and modules established under
subsection (a)—
(1) is actionable and presented in a manner that is easily
comprehensible by small business concerns;
(2) does not give preference to a particular artificial intel-
ligence model or tool over similar such models or tools; and
(3) does not give preference to an artificial intelligence model
or tool developed by a specific entity or group of entities over an
artificial intelligence model or tool developed by another entity
or group of entities.
(f) ARTIFICIAL INTELLIGENCE DEFINED.—In this section, the term
‘‘artificial intelligence’’ has the meaning given such term in section
5002 of the William M. (Mac) Thornberry National Defense Author-
ization Act for Fiscal Year 2021 (15 U.S.C. 9401).
SEC. ø49.¿ 50. All laws and parts of laws inconsistent with this
Act are hereby repealed to the extent of such inconsistency.
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XVIII. MINORITY VIEWS
Artificial intelligence (AI) is technology that enables computers
and machines to perform sophisticated tasks that model human
reasoning and decision making, and it has the potential to revolu-
tionize every aspect of our lives. Many small business owners have
expressed interest in adopting AI tools and software products to
improve efficiency, enhance customer experiences, and gain a com-
petitive edge. In particular, generative AI (GenAI) tools for content
creation, the most visible AI tools today, have exploded in popu-
larity and attention.1
However, not all small business owners are technologically in-
clined. In fact, according to the U.S. Census Bureau, nearly 1 in
4 businesses do not know whether they will or will not use AI in
production during the next six months.2 This can be attributed to
a lack of awareness of AI technology, their capabilities and limita-
tions, and what software qualifies as AI. Furthermore, AI literacy
resources are not uniform or widespread among communities. In
areas where AI literacy courses are held, offerings vary in quality,
scope, affordability, and accessibility. Concerns have also been
raised that uneven resource distribution could exacerbate the dig-
ital divide among various regions, communities, and socioeconomic
groups. The emerging nature of this technology gives large corpora-
tions an advantage over small businesses because they have the
technical expertise and resources to adopt it quickly.
This lack of AI literacy has also resulted in high-profile harmful
and problematic incidents for businesses of all sizes. In December
2023, a Chevy dealership in Watsonville, CA deployed an auto-
mated customer service chatbot powered by ChatGPT, a GenAI
tool. Users quickly began manipulating the chatbot, and one user
was offered a Chevy Tahoe for $1 with acknowledgements that the
offer was ‘‘legally binding.’’ 3 Many incidents are attributable sim-
ply to AI’s current immaturity as a technology and the challenges
that come with its continuing development. These issues could
have been avoided by a thorough and critical review of the under-
lying AI technology involved and any relevant flaws.
AI also poses other, more difficult risks. First, as a result of the
data and content used in AI training and fine-tuning, tools could
make biased and discriminatory decisions, or steal intellectual
property and content from unknowing creators. Second, halluci-
nations and omissions in AI outputs could mislead entrepreneurs
and direct them to break laws and regulations. Third, AI-generated
1 H. COMM. ON SMALL BUS. DEMOCRATIC STAFF, BOTS OVER BRUSHES: THE LOOMING COMPETI-
TION BETWEEN GENERATIVE AI AND SMALL CONTENT CREATORS (Mar. 19, 2024).
2 Business Trends and Outlook Survey, U.S. CENSUS BUREAU (Oct. 24, 2024), https://
www.census.gov/hfp/btos/data.
3 Katie Notopoulos, A car dealership added an AI chatbot to its site. Then all hell broke loose.,
BUS. INSIDER (Dec. 18, 2023), https://www.businessinsider.com/car-dealership-chevrolet-chatbot-
chatgpt-pranks-chevy-2023-12.
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(9)
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deepfakes could be used for disinformation, fraud, and scams.
Fourth, cybersecurity vulnerabilities and other safety issues in AI
tools could render them open to adversarial attacks. Lastly, addi-
tional risks could emerge as AI evolves and gains added capabili-
ties.
The reputational and legal harm caused by flaws in AI tools de-
ployed by businesses can be steep, which can negatively and sig-
nificantly impact small businesses. This underscores the need for
entrepreneurs considering adopting AI tools to critically evaluate
and assess their capabilities. If small business owners determine
these tools are necessary, they should be equipped to adopt them
effectively and help remedy any related drawbacks. At the Commit-
tee’s September 17, 2025 hearing entitled ‘‘Streaming Success:
Small Businesses in the Age of Digital Influence,’’ Republican wit-
ness Kayla Moran endorsed ‘‘having the [U.S. Small Business Ad-
ministration (SBA)] provide guided resources’’ on AI, including ‘‘an
AI expert, someone explaining what these terms mean.’’ 4
This legislation would require the SBA to develop AI literacy re-
sources through its existing e-learning platform. It is the Commit-
tee’s intent for the SBA to provide entrepreneurs with an objective,
balanced, and well-rounded understanding of AI as a technology,
and to help them determine whether AI tools are needed for their
businesses. If a small business owner opts to adopt and implement
AI in their firms, the Committee expects the SBA to share informa-
tion on how to best to mitigate risks, including identifying and re-
porting bugs and flaws to the tools’ developers. This legislation also
would allow the SBA’s entrepreneurial development resource part-
ners—the Small Business Development Centers, Women’s Business
Centers, SCORE, and Veterans Business Outreach Centers—to
adapt the SBA’s AI literacy resources for local community use.
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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4 Streaming Success: Small Businesses in the Age of Digital Influence: Hearing before the H.
COMM. ON SMALL BUS., 119th Cong. (Sep. 17, 2025).
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