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


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

The new rule, which industry leaders say could come later this week, effectively seeks to bolster the U.S. economy and national security efforts by adding new restrictions on how many products are made in the United States. artificial intelligence products can be deployed worldwide.

“A rule of this nature would cede the global market to American competitors who will be eager to fill the untapped demand created by the imposition of arbitrary restrictions on the ability of American companies to sell core computer systems abroad ,” stated a letter Monday from Jason Oxman, the president and CEO of the Information Technology Industry Council (ITI), sent to Commerce Department Secretary Gina Raimondo. “Should the United States lose its edge in the global AI ecosystem, it will be difficult, if not impossible, to regain in the future.”

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The process to put 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 curbing 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 china the following month.

Nvidia's AI-powered bots are on display

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 ended, 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 being formally published in the Federal Register.

“The Bureau of Industry and Security’s (‘BIS’) proposed Interim Final Rule (“IFR”) is a very complex and very broad attempt to regulate artificial intelligence and GPUs in the name of national security” , Ken Glueck, Executive Vice President. at oracle, he wrote Sunday in a blog post that 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 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 fears that the new regulations will stifle economic growth in the domestic AI sector, some critics have also argued that blocking US AI makers from selling their computer chips worldwide could 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 it’s likely to find that if it issues that ultimatum, many will choose China,” Stephen Ezell, vice president of global policy at innovation at the Information Technology and Innovation Foundation, said in a statement published Tuesday on the foundation’s website.

“Furthermore, the United States should counter efforts by China and Russia, which recently launched a AI Alliance Network among the BRICS countries, to provide their own allies and partners with access to AI data, models and computing resources,” he added.

AI graphic with USA and China flags

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

Ezell and others also highlighted the rushed nature of the new proposed rule on export controls, arguing that rushing 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 change in policy 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 “deliver on the policymaking process.” the incoming Trump administration because it will “ensure that there is an adequate opportunity for government and industry leaders, along with our global partners, to thoughtfully address this critical matter.”

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It is unclear exactly how the incoming administration might approach this issue. Trump has signaled he is not afraid to strike new trade deals and could use export controls as leverage.

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

AI logo phone with a Donald Trump insert

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

“With US energy dominance, we will reduce inflation, win the AI ​​arms race with China (and others), and expand US diplomatic power to end wars around the world,” Trump wrote in a email announcing former North Dakota Governor Doug. Burgum as the new head of the Department of the Interior.

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Fox News Digital reached out to him White House for comment, but did not receive a response by press time.



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