On October 22, the National Institute of Standards and Technology (“NIST”) Internet of Things (“IoT”) Advisory Board released the Internet of Things Advisory Board Report, which concludes that IoT development has progressed more slowly than anticipated and identifies 26 findings that explain the slower pace of development and growth.  The Report offers 104 recommendations on how the government can help foster IoT development.  The Advisory Board provided this report to the IoT Federal Working Group emphasizing that an IoT transformation will boost U.S. economic growth, increase public safety and national resilience, create a more sustainable planet, individualize healthcare, foster equitable quality of life and well-being, and facilitate autonomous operations of our national infrastructure.  For background, the IoT Federal Working Group was established by Congress in 2020 and was charged with identifying policies and statutes inhibiting IoT development and consider recommendations of the Advisory Board. 

The Findings:  Although IoT was previously projected to produce up to $216 trillion in value for the global economy, the Report concludes that IoT growth has slowed.  The Report identified 26 findings as to why IoT innovation has failed to reach projected goals.  Key findings include:

  • Insufficient numbers of skilled workers are available to develop, integrate, deploy, operate, and maintain IoT devices, systems, and applications.
  • Establishing trust in IoT requires a multi-dimensional ecosystem perspective, extending beyond cybersecurity and privacy.
  • Artificial Intelligence (AI) is critical to unlocking and accelerating the value of IoT, but significant challenges must be addressed.
  • Equity in access, opportunities, benefits, and outcomes is necessary for the sustainable integration of IoT into all aspects of the national economy and civil society.

The Recommendations:  The Report identifies 104 recommendations grouped into categories to help foster IoT development once again reiterating the underlying premise that IoT transformation will boost U.S. economic growth, public safety, and national resilience, among other benefits.  Key recommendations offered by the Report include:

  • Unlock the IoT Enabled Economy:  The Report emphasized that the Executive Branch should encourage businesses to adopt IoT technologies in their supply chain operations by reducing initial investment costs and perceived risks associated with the implementation of IoT solutions.
  • Facilitate Adoption:  The Report suggested that Government actors can remove barriers to IoT considerations and adoption by focusing on interoperability.
  • Modernize Infrastructure:  The Report encouraged Congress and the Executive Branch to collaborate with industry, academic, and public sector partners to enhance and modernize the infrastructure that enables IoT.
  • Establish Trust: According to the Report, establishing trust in IoT is crucial for widespread adoption and public confidence.  Among other things, the Report suggests that trust can be established through secure and reliable IoT operation, as well as accurate and explainable use of algorithms. 
  • Create an IoT-Ready Workforce:  In order to foster workforce development and empowerment, the report recommended that Congress and local governments collaborate with industry, academia, and state and local governments to align educational and training efforts with the evolving demands of the IoT sector, which will help ensure a well-prepared and adaptable workforce.
Photo of Jennifer Johnson Jennifer Johnson

Jennifer Johnson is a partner specializing in communications, media and technology matters who serves as Co-Chair of Covington’s Technology Industry Group and its global and multi-disciplinary Artificial Intelligence (AI) and Internet of Things (IoT) Groups. She represents and advises technology companies, content distributors…

Jennifer Johnson is a partner specializing in communications, media and technology matters who serves as Co-Chair of Covington’s Technology Industry Group and its global and multi-disciplinary Artificial Intelligence (AI) and Internet of Things (IoT) Groups. She represents and advises technology companies, content distributors, television companies, trade associations, and other entities on a wide range of media and technology matters. Jennifer has three decades of experience advising clients in the communications, media and technology sectors, and has held leadership roles in these practices for more than twenty years. On technology issues, she collaborates with Covington’s global, multi-disciplinary team to assist companies navigating the complex statutory and regulatory constructs surrounding this evolving area, including product counseling and technology transactions related to connected and autonomous vehicles, internet connected devices, artificial intelligence, smart ecosystems, and other IoT products and services. Jennifer serves on the Board of Editors of The Journal of Robotics, Artificial Intelligence & Law.

Jennifer assists clients in developing and pursuing strategic business and policy objectives before the Federal Communications Commission (FCC) and Congress and through transactions and other business arrangements. She regularly advises clients on FCC regulatory matters and advocates frequently before the FCC. Jennifer has extensive experience negotiating content acquisition and distribution agreements for media and technology companies, including program distribution agreements, network affiliation and other program rights agreements, and agreements providing for the aggregation and distribution of content on over-the-top app-based platforms. She also assists investment clients in structuring, evaluating, and pursuing potential investments in media and technology companies.

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Photo of Micaela McMurrough Micaela McMurrough

Micaela McMurrough serves as co-chair of Covington’s global and multi-disciplinary Technology Group, as co-chair of the Artificial Intelligence and Internet of Things (IoT) initiative. In her practice, she has represented clients in high-stakes antitrust, patent, trade secrets, contract, and securities litigation, and other…

Micaela McMurrough serves as co-chair of Covington’s global and multi-disciplinary Technology Group, as co-chair of the Artificial Intelligence and Internet of Things (IoT) initiative. In her practice, she has represented clients in high-stakes antitrust, patent, trade secrets, contract, and securities litigation, and other complex commercial litigation matters, and she regularly represents and advises domestic and international clients on cybersecurity and data privacy issues, including cybersecurity investigations and cyber incident response. Micaela has advised clients on data breaches and other network intrusions, conducted cybersecurity investigations, and advised clients regarding evolving cybersecurity regulations and cybersecurity norms in the context of international law.

In 2016, Micaela was selected as one of thirteen Madison Policy Forum Military-Business Cybersecurity Fellows. She regularly engages with government, military, and business leaders in the cybersecurity industry in an effort to develop national strategies for complex cyber issues and policy challenges. Micaela previously served as a United States Presidential Leadership Scholar, principally responsible for launching a program to familiarize federal judges with various aspects of the U.S. national security structure and national intelligence community.

Prior to her legal career, Micaela served in the Military Intelligence Branch of the United States Army. She served as Intelligence Officer of a 1,200-member maneuver unit conducting combat operations in Afghanistan and was awarded the Bronze Star.

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Photo of Jayne Ponder Jayne Ponder

Jayne Ponder provides strategic advice to national and multinational companies across industries on existing and emerging data privacy, cybersecurity, and artificial intelligence laws and regulations.

Jayne’s practice focuses on helping clients launch and improve products and services that involve laws governing data privacy…

Jayne Ponder provides strategic advice to national and multinational companies across industries on existing and emerging data privacy, cybersecurity, and artificial intelligence laws and regulations.

Jayne’s practice focuses on helping clients launch and improve products and services that involve laws governing data privacy, artificial intelligence, sensitive data and biometrics, marketing and online advertising, connected devices, and social media. For example, Jayne regularly advises clients on the California Consumer Privacy Act, Colorado AI Act, and the developing patchwork of U.S. state data privacy and artificial intelligence laws. She advises clients on drafting consumer notices, designing consent flows and consumer choices, drafting and negotiating commercial terms, building consumer rights processes, and undertaking data protection impact assessments. In addition, she routinely partners with clients on the development of risk-based privacy and artificial intelligence governance programs that reflect the dynamic regulatory environment and incorporate practical mitigation measures.

Jayne routinely represents clients in enforcement actions brought by the Federal Trade Commission and state attorneys general, particularly in areas related to data privacy, artificial intelligence, advertising, and cybersecurity. Additionally, she helps clients to advance advocacy in rulemaking processes led by federal and state regulators on data privacy, cybersecurity, and artificial intelligence topics.

As part of her practice, Jayne also advises companies on cybersecurity incident preparedness and response, including by drafting, revising, and testing incident response plans, conducting cybersecurity gap assessments, engaging vendors, and analyzing obligations under breach notification laws following an incident.

Jayne maintains an active pro bono practice, including assisting small and nonprofit entities with data privacy topics and elder estate planning.

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