Export Controls on AI Could Hurt US Companies, Technology Development

Future Commerce Department export controls on artificial intelligence could end up blunting AI technology development in the U.S., according to an Aug. 8 post from Lowenstein Sandler.

Commerce’s Bureau of Industry and Security is working on expanding controls on what it considers foundational and emerging technologies, which Commerce officials have defined, respectively, as technologies that are not yet controlled and should be and technologies that are just now being created. Commerce officials said the agency plans to issue an advance notice of proposed rulemaking on foundational technology and hopes to set export controls on emerging technology soon (see 1907110056).

Although Commerce has said it will not look to control U.S. fundamental research, AI manufacturers are concerned about the limits of potential export restrictions, Lowenstein Sandler said. The law firm also said Commerce assumes that differentiating between “commercial and military AI applications is easy.” There is a significant amount of overlap between the two sectors, the post said, further complicating export control challenges. “It will be important for lawmakers to consider how the AI export controls will be implemented so as not to hinder innovation,” the post said.