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

Tech industry leaders are sounding the alarm over a potential new regulation that could limit artificial intelligence exports, raising concerns that it could undermine the United States’ global dominance in AI. The rule, expected to be rolled out by the Biden administration soon, aims to impose restrictions on the export of U.S.-made AI products to bolster the country’s economy and national security efforts.

In a letter addressed to Commerce Department Secretary Gina Raimondo, Jason Oxman, the president and CEO of the Information Technology Industry Council (ITI), warned that such a regulation could hand over the global market to U.S. competitors, jeopardizing the country’s position in the global AI ecosystem. The fear is that once the U.S. loses its advantage in AI, it may be challenging, if not impossible, to regain it in the future.

The process for implementing new export controls on AI dates back to October 2022 when the Commerce Department released an updated export framework to counter Chinese military programs. Following this, the Biden administration called on American tech company NVIDIA to halt the sale of certain computer chips to China. The administration then initiated a public notice and comment period, and recently made updates to the rule to further restrict AI exports.

Industry leaders like Ken Glueck from Oracle have criticized the proposed rule, calling it overly broad and warning that it could stifle technological innovation in the U.S. Glueck emphasized the importance of regulating technology with a light touch to maintain American technological leadership.

Critics of the regulation have also raised concerns that blocking American AI manufacturers from selling their products globally could inadvertently benefit China. Stephen Ezell of the Information Technology and Innovation Foundation argued that the U.S. should counter China and Russia’s efforts to offer AI resources to other countries.

Experts warn of dire consequences if China were to surpass the U.S. in technological capabilities, urging the Biden administration to reconsider the rushed nature of the proposed rule and seek industry input before finalizing it. The Semiconductor Industry Association also urged the administration to involve industry leaders and global partners in addressing the critical matter.

It remains unclear how the incoming administration will approach this issue, but there are indications that Trump may use the export controls as leverage in trade negotiations. President-elect Trump has expressed a desire to win the AI arms race with China, signaling a continued focus on technological competition between the two countries.

As the debate continues, industry leaders and policymakers stress the importance of thoughtful and inclusive decision-making to ensure that the U.S. remains a leader in the global AI landscape.