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Tech industry leaders are urging the Biden administration not to add a new regulation that would limit the export of artificial intelligence, citing concerns that it is too broad and could diminish the United States’ global AI dominance.
The new rule, which industry leaders say could go into effect as early as the end of this week, actually seeks to strengthen the U.S. economy and national security efforts by adding new limits on the amount of U.S.-made artificial intelligence products can be deployed worldwide.
“A rule of this nature would cede the global market to U.S. competitors who would seek to fill untapped demand created by arbitrary restrictions on the ability of U.S. companies to sell major computing systems abroad,” said a letter Monday from Jason Oxman, the council’s president and CEO. of the Information Technology Industry (ITI) to Secretary of the Department of Commerce Gina Raimondo. “If the US loses its lead in the global AI ecosystem, it will be difficult, if not impossible, to regain in the future.”
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The process of introducing new AI export controls began in October 2022, when the Biden administration’s Commerce Department first released an updated export framework aimed at slowing the progress of China’s military programs. Details of the new incoming export controls come after the Biden administration called on US technology company NVIDIA to stop selling certain computer chips China next month.
The American company Nvidia is engaged in the development of real robots equipped with artificial intelligence functions. (Justin Sullivan/Getty Images)
In an update to the rules 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 ends, the administration released two new rule updates that added more restrictions to the proposed export controls. The rule is now in the final stages before it is officially published in the Federal Register.
“The Bureau of Industry and Security’s (“BIS”) proposed interim final rule (“IFR”) is a very complex and extremely broad attempt to regulate artificial intelligence and GPUs in the name of national security,” said Ken Gluck, executive vice president at oracle, wrote in a blog post on Sunday, which was published on his company’s website.
“For more than half a century, the bipartisan consensus has held that the best way to achieve US technological leadership is through technology regulation with a light touch. As a result, American companies continue to lead in each successive generation of technology, from the personal computer to the Internet, to mobile devices, to the cloud, and now to artificial intelligence.”
In addition to concerns that new rules will stifle economic growth in the domestic AI sector, some critics also argue that blocking US AI makers from selling their computer chips around the world could benefit China.
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“The Biden administration is trying to force other countries to choose a side — the U.S. or China — and is likely to find that if it issues this ultimatum, many will choose China,” said Stephen Ezell, vice president for global innovation policy at the Information Technology and Innovation Foundation. said in a statement on Tuesday published on the foundation’s website.
“Furthermore, the United States must counter the efforts China and Russia have recently launched AI Alliance Network among the BRICS countries to offer its allies and partners access to AI data, models and computing resources,” he added.
Experts warn of dire consequences for America if China surpasses the US in its technological capabilities.
Ezell and others also highlighted the rushed nature of the proposed new export control rule, arguing that the rush to finalize it came at the cost of adequate industry input into the new rules.
“We respectfully caution against such rapid and significant policy shifts during this transition period and without serious industry consultation,” the Semiconductor Industry Association said in a statement on Monday. The group urged the Biden administration to “devolve the policymaking process.” the incoming Trump administration because it will “provide an adequate opportunity for government and industry leaders, together with our global partners, to thoughtfully address this important issue.”
It is not yet clear how the new administration might approach this issue. Trump has made it clear he is not afraid to initiate new trade deals and could potentially use export controls as leverage.
However, the president-elect said after his victory in the November election that the focus of his second term would be “winning the AI arms race with China (and others).”
(Omar Marquez/SOPA Images/LightRocket | Charly Triballeau/AFP via Getty Images)
“With US energy dominance, we will lower 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 announcing former North Dakota Gov. Doug . Burgum became the new head of the Ministry of Internal Affairs.
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Fox News Digital reached out to The White House for comment, but did not receive a response by the time of publication.
