Commencement of the subsequent stage of digital modernization for the Securities and Exchange Commission (SEC) and Patent and Trademark Office (PTO)

Commencement of the subsequent stage of digital modernization for the Securities and Exchange Commission (SEC) and Patent and Trademark Office (PTO)

In a significant push towards modernization, the U.S. Patent and Trademark Office (USPTO) and the Securities and Exchange Commission (SEC) are leveraging cloud services and artificial intelligence (AI) to drive change in their digital transformation journeys.

## Focus on Cloud and IT Modernization

Both agencies are moving towards cloud-based systems to enhance operational efficiency, scalability, and security. The USPTO has modernized its Patent Center platform, introducing security-enhancing identity verification and improving system availability for patent filings and document submissions. The SEC's move to the cloud has allowed it to do more to modernize its underlying infrastructure, making it less dependent on data centers.

Enhanced security and user authentication are also key focuses. The USPTO is implementing upgraded authentication methods, such as ID.me, to strengthen account security for users. This focus on security is part of a broader government-wide push to modernize digital infrastructure while maintaining robust cybersecurity standards.

## Leveraging Artificial Intelligence

The USPTO is supporting multiple AI efforts, including using generative AI and AI for code assistance, refactoring old code, and translating it to work optimally in the cloud. The SEC is expected to use AI for data analysis in regulatory filings, market surveillance, and risk assessment.

The USPTO is testing agentic AI for customer service, while the SEC is moving past user-determined decisions towards AI-driven decisions. However, the SEC faces challenges in managing and labeling data for AI tools.

## Interagency Collaboration and Unified Digital Goals

Both the SEC and USPTO are part of a coordinated federal effort to modernize digital infrastructure, with a shared emphasis on integrating cloud and AI technologies to streamline operations and improve service delivery. These initiatives are also in line with broader federal mandates to consolidate or terminate less productive digital transformation efforts, ensuring resources are directed to the most effective solutions.

## Summary

In summary, the SEC and USPTO are actively integrating cloud and AI technologies to modernize operations, enhance security, and improve user outcomes. The SEC has awarded a $250 million BPA contract to four firms in 2023, and the USPTO's AI efforts, after a 90-day pilot, are almost going into production. Holcombe, at the USPTO, emphasizes the importance of moving fast, cheaper, and faster in the new administration. The SEC is promoting a digital services blanket purchase agreement (BPA), which is a focus on digital services, as opposed to infrastructure or application development. Both agencies are committed to a culture of acceptance for risk and failure in their digital transformation journeys.

1. The federal workforce at the USPTO and SEC is undergoing a reimagined phase as both agencies are integrating data-and-cloud-computing and artificial-intelligence technologies to modernize their workforce operations.
2. The reimagined workforce is focusing on leveraging technology such as enhanced security and user authentication methods, AI for code assistance and regulatory filings analysis, as well as agentic AI for customer service, to improve operational efficiency, scalability, and security.

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