Hogan Lovells 2024-2025 AI Trends Guide - Flipbook - Page 40
National security risks: AI as a pending
Congressional target
Export controls as it relates to AI are focused on the sale of
advanced semiconductors to the U.S., China, Russia, and other
countries. In October 2022, the U.S. Commerce Department’s
Bureau of Industry and Security (BIS) issued an interim final rule
to deny China’s access to certain semiconductor and advanced
computing technology and to inhibit China’s ability to manufacture
those items domestically. Additionally, on 7 March 2023, U.S.
Senators Mark Warner and John Thune introduced the Restricting
the Emergence of Security Threats that Risk Information and
Communications Technology (RESTRICT) Act, sweeping legislation
aimed at restricting or prohibiting the use of Chinese and other
specified foreign adversaries’ technologies in the U.S. with
information and communications technology products and
services integral to AI and ML being among a number of areas to
be prioritized.
BIS’s October 2022 rule does not solely target AI platforms and capabilities.
The rule places restrictions on certain high-performance integrated
circuits and related computers, servers and electronic assemblies that are
used in advanced computing platforms which in turn enable advanced
AI capabilities. It also imposes end-use and end-user-based restrictions
on exports, reexports, and in-country transfers of items intended for
use in certain semiconductor fabrication “facilities” in China and
“supercomputers” located in or destined for China. Additionally, the
RESTRICT Act legislation poses additional potential restrictions on the use
and supply of information, communication and technology (ICT) products
and services, which could include the targeting of AI-related products or
services, to or from certain countries, including China, and would grant the
Commerce Department express authority to target assets outside the U.S.
that are used to support or enable the use of certain adversary country ICT
products and services in the U.S.
Additional
resources
Spotlight
Law360 Expert Analysis | AI And Trade
Controls: A Guide To Expanding Restrictions
Authors
Lourdes Catrain
Partner
Brussels & Madrid
Aline Doussin
Partner
London & Paris
Ben Kostrzewa
Partner
Hong Kong &
Washington, D.C.
Josh Gelula
Counsel
Washington, D.C.
