The Department of Homeland Security faces a critical challenge in effectively regulating AI applications related to cybersecurity and weapons of mass destruction, as mandated by recent executive orders. While DHS has historically struggled with performance issues, targeted interventions could enhance its capacity specifically for AI oversight without requiring broader agency reforms.

Building Technical Expertise within DHS

One approach could involve creating specialized structures to overcome DHS's known limitations. A dedicated AI regulatory division with competitive hiring packages might attract technical experts who would otherwise choose private sector roles. Temporary solutions like an AI Fellows program could quickly embed specialists from industry and academia, while National Security exceptions could help compete on compensation. These changes would ideally maintain DHS's existing cybersecurity infrastructure while introducing pockets of technical excellence.

Structured Collaboration Approach

The proposal suggests formalizing partnerships with technically-competent agencies through:

• Memorandums of Understanding with NIST and Department of Energy to clarify roles
• Joint working groups for policy development
• A shared regulatory sandbox for testing security applications of AI

This framework could help DHS leverage external expertise while maintaining its lead role in security-related AI regulation.

Phased Implementation Strategy

A possible execution path might include:

1. Establishing an AI Policy Office within DHS's existing Science & Technology Directorate
2. Recruiting 50-100 technical staff through special hiring authorities
3. Launching interagency collaborations before implementing binding standards

The phased approach allows for testing key assumptions about DHS's capacity for improvement and the feasibility of competing with other agencies for regulatory authority.

This targeted strategy focuses on building DHS's technical competence and collaborative frameworks specifically for AI regulation, creating a potentially more achievable path than comprehensive agency reform.