After months of speculative implementation, the U.S. Department of Commerce (DOC) has officially rescinded the Biden Administration’s Artificial Intelligence Diffusion Rule. This rule was supposed to go into effect only a few days after the announcement. This decision signals a historic shift in how the U.S. plans to monitor the rapidly evolving artificial intelligence tech. It affects the ability to export this technology to other countries.
In response to those proposed regulations, the DOC ordered its staff not to enforce them, which had been developed during the Biden Administration. The Artificial Intelligence Diffusion Rule establishes three clear tiered levels of countries. Each tier is accompanied by a range of prohibitions on exports of advanced AI technology. Tier 1 countries, which would include allies like Japan, South Korea, etc., would be exempt from any export restrictions. Tier 2 regions such as Mexico and Portugal would face export restrictions on semiconductors for the first time. It is a major victory for trade rules on these islands. Highest level controls were targeted to a group of countries, Tier 3, that consisted of US strategic competitors and enemies, such as China and Russia.
This announcement ended a week-long speculation and chatter about a policy shift that might be responsible for the rescission. The Trump Administration’s new strategy calls for deepening cooperation with foreign partners we trust while continuing to protect American technology from our adversaries.
“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.” – U.S. Secretary of Commerce for Industry and Security Jeffery Kessler
The rule’s rescinding signals a broader move toward a more permissive export regime for our allied countries. Simultaneously, it increases the screws on immigrants who we think of as adversarial. The DOC’s decision reflects a broader trend in the current administration’s approach to technology regulation and international relations.
