Tech industry leaders are urging the Biden administration not to add new regulations that will limit artificial intelligence exports, citing concerns that it is too broad and threatens the United States’ global dominance the field of AI could decrease.
The new rule, which industry leaders say could take effect as early as the end of this week, is essentially intended to support the U.S. economy and national security efforts by adding new restrictions on the number of U.S.-made artificial intelligence products can be deployed all over the world.
“A rule of this nature would cede the global market to U.S. competitors eager to meet the untapped demand created by imposing arbitrary restrictions on the ability of U.S. companies to sell basic computer systems abroad,” said a letter from Monday from Jason Oxman, the US Secretary of State. president and CEO of the Information Technology Industry Council (ITI), sent to Department of Commerce Secretary Gina Raimondo. “Should the US lose its lead in the global AI ecosystem, it will be difficult, if not impossible, to regain it in the future.”
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The process to impose new export controls on artificial intelligence dates back to October 2022, when the Biden administration’s Commerce Department first released an updated export framework aimed at slowing the progress of Chinese military programs. Details of the new incoming export controls emerged after the Biden administration called on US technology company NVIDIA to stop selling certain computer chips to China the following month.
Nvidia, an American company, is developing real-world robots equipped with artificial intelligence capabilities. (Justin Sullivan/Getty Images)
In an update to the rule the following year, the Biden administration announced the start of a public notice and comment period. Finally, last month, as the president’s term in the White House came to an end, the administration issued two new updates to the rule that added more restrictions to the proposed export controls. The rule is now in its final stages before it will be formally published in the Federal Register.
“The Bureau of Industry and Security’s (‘BIS’) proposed Interim Final Rule (‘IFR’) is a highly complex and overly broad attempt to regulate artificial intelligence and GPUs in the name of national security,” said Ken Glueck, executive vice president. bee Oracle, wrote Sunday in a blog post published on his company’s website.
“For more than half a century, there has been a bipartisan consensus that the best way to achieve U.S. technological leadership is to regulate technology with a light touch. As a result, American companies have continued to lead each successive generation of technology, from the personal computer to the Internet, to mobile, to the cloud and now to artificial intelligence.”
In addition to the fear that the new regulations will stifle economic growth in the domestic AI sector, some critics have also argued that blocking US AI manufacturers from selling their computer chips around the world could actually benefit China.
“The Biden administration is trying to force other countries to choose a side — the United States or China — and will likely find that if it issues this ultimatum, many will choose China,” said Stephen Ezell, vice president of global innovation policy. at the Information Technology and Innovation Foundation, according to a Tuesday statement on the foundation’s website.
“In addition, the United States must counter the efforts of China and Russia, which recently launched an initiative AI alliance network among BRICS countries, to provide its own allies and partners with access to AI data, models and computing resources,” he added.
Experts warn of dire consequences for America if China were to surpass the US in its technological capabilities.
Ezell and others also emphasized the hasty nature of the new proposed rule on export controls, arguing that the rush to finalize it has come at the expense of adequate industry input on the new regulations.
“We respectfully caution against making such a rapid and significant policy change during this transition period, and without meaningful consultation with industry,” the Semiconductor Industry Association said in a statement Monday. The group encouraged the Biden administration to “transfer the policymaking process” to the administration incoming Trump administration because it will “ensure there are appropriate opportunities for government and industry leaders, together with our global partners, to thoughtfully address this critical issue.”
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It is uncertain how exactly the new government will address this issue. Trump has indicated he is not afraid to strike new trade deals and could potentially use export controls as leverage.
However, the president-elect said after his election victory in November that the focus of his second term will be on “winning the AI arms race with China (and others).”
(Omar Marques/SOPA Images/LightRocket | Charly Triballeau/AFP via Getty Images)
“With American energy dominance, we will reduce inflation, win the AI arms race with China (and others), and expand American diplomatic power to end wars around the world,” Trump wrote in an email to the former governor of North Dakota, Doug, announced. Burgum as the new head of the Interior Department.
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Fox News Digital contacted the White House for comment, but did not receive a response by the time of publication.
