The US government has announced a new series of export controls on technology used in developing artificial intelligence, including advanced computer chips.
“This policy will help build a trusted technology ecosystem around the world and allow us to protect against the national security risks associated with AI, while ensuring controls do not stifle innovation or US technological leadership,” said US commerce secretary Gina Raimondo.
The new rule, ‘Export Control Framework for Artificial Intelligence Diffusion’, will expand the list of countries that can be exported to without a licence.
The regime includes a “presumption of denial” for large quantities of advanced equipment used to train AI models and security conditions on the storage of more advanced chips being exported to places with “heightened risks of diversion”, as well as updates to existing certificates.
The US government said that the rules were put in place to help cultivate a secure environment for the development of AI.
Exceptions
The restrictions will not be applied on 18 ‘key’ allies and partners, according to a White House factsheet.
There are other exceptions for ‘low volumes’ of exports as well as for the development, storage and manufacturing of these chips.
Additionality, entities that have high security standards and which are headquartered in allied countries can obtain “Universal Verified End User” (UVEU) status, gaining the ability to ship up to 7% of their capacity around the world.
Ally reactions
Despite US insistence that the new rules would be flexible, European authorities were cautious on the new controls.
A joint statement by European Commission (EC) executive vice-president Henna Virkkunen and trade commissioner Maroš Šefčovič expressed “concern” at the measures. They said they would work with both the Biden and Trump administrations on the issue.
“We are confident that we can find a way to maintain a secure transatlantic supply chain on AI technology and super computers, for the benefit of our companies and citizens on both side of the Atlantic.”
Daniela Turiccki, Chartered Institute of Export & International Trade’s advisory practice lead on export controls, said:
"The decision is an interesting one for several reasons. While restricting the ability of bad actors to develop AI is a positive move, the fact that certain countries will no longer be able to develop the technology using US sources might mean they end up turning to China.
“Ultimately, collaboration is needed on AI to make sure that all countries agree on how to safely and fairly develop the technology."
Disappointment
AI industry figures responded negatively to the announcement, coming only days before Donald Trump succeeds Joe Biden as US president.
Semiconductor Industry Association (SIA) president John Neuffer said he was “deeply disappointed” with the nature of the announcement, describing it as “being rushed out the door” just before the end of Biden’s term without any meaningful input from industry.
“The new rule risks causing unintended and lasting damage to America’s economy and global competitiveness in semiconductors and AI by ceding strategic markets to our competitors. The stakes are high, and the timing is fraught.”
Nvidia, one of the largest computing manufacturers in the world, described the decision as “misguided” and said it was already undercutting US interests.
“While cloaked in the guise of an “anti-China” measure, these rules would do nothing to enhance US security. The new rules would control technology worldwide, including technology that is already widely available in mainstream gaming PCs and consumer hardware.”
The rules will not come into force for 120 days.
The Chartered Institute of Export & International Trade’s Export Controls Advisory Practice is here to help UK exporters thrive in a complex regulatory landscape.
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