Trump Administration Rolls Back Biden's AI Rules

Rescission of the AI Diffusion Rule

Following a period of speculation, the U.S. Department of Commerce (DOC) has officially withdrawn the Artificial Intelligence Diffusion Rule established by the Biden administration. This action occurred shortly before the rule was scheduled to become operational.

Initial Implementation of the Rule

Introduced in January by former president Joe Biden, the Artificial Intelligence Diffusion Rule was slated to take effect on May 15th. It represented the first instance of limitations being placed on the export of U.S.-manufactured AI chips to numerous nations, while simultaneously reinforcing pre-existing restrictions.

DOC's Announcement and Future Plans

The DOC announced on Tuesday that its personnel were instructed to cease enforcement of the Biden-era regulation. Plans are underway to release a revised rule in the coming months.

According to reports from Bloomberg, the forthcoming rule is expected to prioritize direct diplomatic negotiations with individual countries, rather than implementing broad, sweeping restrictions.

Tiered Restriction System

Biden’s initial proposal categorized the world’s countries into three distinct tiers, each subject to a different level of export control. Countries in Tier 1, such as Japan and South Korea, would have remained unrestricted.

Tier 2, encompassing nations like Mexico and Portugal, would have faced new limitations on chip exports. Tier 3, including China and Russia, would have experienced even more stringent controls.

Industry Guidance Released

In the absence of the new regulations, the DOC issued guidance to industry stakeholders on Tuesday. This guidance reiterated that the utilization of Huawei’s Ascend AI chips globally is a violation of U.S. export regulations.

Furthermore, the DOC cautioned against the potential repercussions of allowing U.S. AI chips to be used in the training of AI models within China, and offered recommendations for safeguarding chip supply chains against diversionary practices.

Statement from Secretary Kessler

“The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries,” stated U.S. Secretary of Commerce for Industry and Security Jeffrey Kessler.

“We reject the Biden Administration’s attempt to impose its own ill-conceived and counterproductive AI policies on the American people.”

Key Takeaways

• The Artificial Intelligence Diffusion Rule has been rescinded by the U.S. Department of Commerce.
• A new rule is expected, focusing on bilateral negotiations.
• The DOC has provided guidance regarding existing export control regulations.