Recent reports have revealed that, despite export controls, foreign companies affiliated with U.S. adversaries such as China can access restricted artificial intelligence (AI) chips via cloud-based methods and advanced AI models, highlighting critical regulatory gaps. In a new insight, Technology and Innovation Policy Analyst Angela Luna reviews concerns regarding the reportedly ineffective application of standing export controls to AI and considers how policymakers’ suggestions to close regulatory loopholes could unintentionally stifle AI innovation.

Key points:

• To address loopholes in standing export controls, two bipartisan groups of lawmakers this year introduced the Remote Access Security Act, which would restrict remote access to advanced AI chips, and the Enhancing National Frameworks for Overseas Critical Exports Act, which would give the Department of Commerce’s Bureau of Industry and Security authority to control exports of covered AI systems.
• While these bills would likely restrict the ability of foreign adversaries to develop military equipment and AI technologies, they would also likely limit innovation and development of AI capabilities in the United States.
• Lawmakers should carefully weigh these trade-offs as they consider new export-control legislation.

Read the analysis