Balancing National Security and Economic Competitiveness in AI Export Controls

As the Biden administration concludes its term, its Interim Final Rule (IFR) for an “Export Control Framework for Artificial Intelligence Diffusion” has sparked significant debate. While aimed at safeguarding U.S. national security by restricting the export of advanced AI chips and technologies to strategic competitors like China and Russia, the framework raises pressing concerns about its implications for U.S. competitiveness.

The rule’s country-specific caps and licensing regime would most notably affect the export of GPU chips that power cutting-edge AI applications such as large language models (LLMs). The framework’s broad scope and lack of targeted measures could undermine U.S. competitiveness in AI, diminish U.S. global leadership in digital policy, and create openings for foreign AI chipmakers to seize global market share. Furthermore, the absence of robust industry consultation in crafting the rules raises important questions about its design and implementation and risks overlooking more effective and nuanced solutions.

Join ITIF for a panel discussion on the proposed AI export control framework’s implications for U.S. competitiveness, the global AI ecosystem, and national security. Panelists will discuss the risks of the proposed approach, explore alternative policy strategies, and discuss the path forward to balance economic, security, and foreign policy objectives.

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