Tech leaders urge Biden not to finalize new AI export controls before his term ends

Tech industry leaders are urging the Biden administration not to add new regulation limiting artificial intelligence exports, citing concerns that it is too broad and could diminish America’s global dominance in AI.

The new rule, which industry leaders say could go into effect later this week, effectively seeks to shore up the U.S. economy and national security efforts by adding new restrictions on the number of products made in the United States. artificial intelligence The products can be deployed worldwide.

“A rule of this nature would cede the global market to American competitors who will be eager to meet the untapped demand created by imposing arbitrary restrictions on the ability of American companies to sell basic computer systems abroad,” stated a Monday letter from Jason Oxman, the president and CEO of the Information Technology Industry Council (ITI), sent to Department of Commerce Secretary Gina Raimondo. “If the United States loses its advantage 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 controls on artificial intelligence exports dates back to October 2022, when the Biden administration’s Commerce Department first published 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 asked US technology company NVIDIA to stop selling certain computer chips to Porcelain 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 comes to an end, the administration released two new updates to the rule that added more limits to the proposed export controls. The rule is now in its final stages before it is formally published in the Federal Register.

“The Interim Final Rule (‘IFR’) proposed by the Bureau of Industry and Security (‘BIS’) is a very complex and tremendously broad attempt to regulate Artificial Intelligence and GPUs in the name of national security,” Ken Glueck, executive vice president. in Oracle, he wrote in a blog post Sunday that was posted on his company’s website.

“For more than half a century, bipartisan consensus has held that the best way to achieve America’s technological leadership is to regulate technology. with a light touch. As a result, American businesses have continued to lead each successive generation of technology, from the personal computer to the Internet, mobile devices, the cloud, and now Artificial Intelligence.”

In addition to fears that the new regulations will stifle economic growth in the domestic AI sector, some critics have also argued that preventing American AI makers from selling their computer chips around the world could actually benefit China.

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“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,” Stephen Ezell, vice president of global innovation policy. of the Information Technology and Innovation Foundation, said Tuesday in a statement posted on the foundation’s website.

“In addition, the United States should counter the efforts of China and Russia, which recently launched a AI Alliance Network between the BRICS countries, to offer their own allies and partners access to AI data, models and computing resources,” he added.

Experts warn of dire consequences for the United States if China surpasses the United States in its technological capabilities.

Ezell and others also highlighted the rushed nature of the proposed new rule on export controls, arguing that rushing to finalize it has come at the cost of adequate industry participation in the new regulations.

“We respectfully caution against such a rapid and significant policy change during this transition period, and without meaningful consultation with the industry,” the Semiconductor Industry Association said in a statement Monday. The group encouraged the Biden administration to “hand over the policymaking process” to the incoming Trump administration because “it will ensure that 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 unclear exactly how the incoming administration will address this issue. Trump has signaled that he is not afraid to initiate new trade deals and could potentially use export controls as leverage.

However, the president-elect said after his election victory in November that a goal of his second term will be to “win the AI ​​arms race with China (and others).”

(Omar Marques/SOPA Images/LightRocket | Charly Triballeau/AFP via Getty Images)

“With America’s 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. announcing former North Dakota Governor Doug. Burgum as new head of the Department of the Interior.

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Fox News Digital contacted White House to comment but did not receive a response at the time of publication.