Biden aims to restrict AI product exports, tech leaders warn of reduced global market share

Tech industry leaders are warning the Biden administration against imposing a new regulation on AI exports, arguing that it is too broad and could harm the US's global leadership in AI technology.

A new rule, which experts predict may be implemented as soon as this week, aims to bolster the U.S. economy and safeguard national security by limiting the use of American-made artificial intelligence products abroad.

"If the U.S. loses its advantage in the global AI ecosystem, it will be challenging to regain it in the future, as stated in a Monday letter from Jason Oxman, the president and CEO of the Information Technology Industry Council (ITI), sent to Commerce Department Secretary Gina Raimondo."

The process to impose new export restrictions on artificial intelligence began in October 2022 when the Biden administration's Commerce Department unveiled an updated export strategy aimed at impeding the advancement of Chinese military programs. Further information about the new export controls emerged after the Biden administration requested that American tech company NVIDIA halt the sale of specific computer chips to China in November 2022.

The Biden administration recently announced the initiation of a public notice and comment period for an update to the rule. Last month, as the president's term in the White House winds down, the administration published 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 will be formally published in the Federal Register.

In a blog post published on Oracle's website on Sunday, Ken Glueck, the executive vice president at Oracle, stated that the Bureau of Industry and Security's ('BIS') proposed Interim Final Rule ('IFR') is a highly complex and wildly overbroad attempt to regulate Artificial Intelligence and GPUs in the name of national security.

"Over the past 50 years, there has been a bipartisan agreement that the key to maintaining U.S. technological superiority is to regulate technology with minimal interference. Consequently, American companies have remained at the forefront of technological advancements, from the personal computer to the Internet, mobile devices, cloud computing, and now Artificial Intelligence."

Some critics contend that the new regulations may hinder economic growth in the domestic AI industry, while others argue that restricting American AI manufacturers from exporting their computer chips globally could advantage China.

According to Stephen Ezell, vice president of global innovation policy at the Information Technology and Innovation Foundation, the Biden administration's attempt to force other countries to choose between the United States and China is likely to result in many countries picking China.

He added that the United States should counter China and Russia's AI Alliance Network among BRICS countries by offering its own allies and partners access to AI data, models, and computer resources.

The new proposed rule on export controls was criticized by Ezell and others for being rushed, which resulted in inadequate input from the industry on the new regulations.

"The Semiconductor Industry Association advised against making a hasty and substantial policy change during this transition period without consulting industry leaders. The group urged the Biden administration to transfer the policymaking process to the incoming Trump administration to allow for a collaborative effort with government and industry leaders, as well as global partners, to address this critical issue."

The incoming administration may not have a clear approach to this issue, but Trump has indicated that he is willing to start new trade deals and could use export controls as a bargaining chip.

The president-elect stated that his second term's focus will be on winning the A.I. arms race with China and other countries.

The new head of the Interior Department, former North Dakota Gov. Doug Burgum, will help drive down inflation, win the A.I. arms race with China (and others), and expand American Diplomatic Power to end wars all across the World, as announced by Trump in an email.

The White House did not respond to Planet Chronicle Digital's request for comment by the time of publication.