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Commerce Export Control on AI Software Causing Industry Confusion

The Commerce Department’s unclear rollout of an export control on geospatial imagery software is causing industry confusion and could lead to broad, unintended impacts on exports of certain artificial intelligence, industry representatives said in interviews last week. “For these companies…

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who now have to supply software without AI, it's like supplying a human body without blood,” said Sanjay Kumar, CEO of the World Geospatial Industry Council. “It will make it impossible for some companies to continue doing business how they were before.” The interim final rule released in January was criticized by industry for unclear definitions that made it difficult for some in the AI field to determine whether the rule applies to them. “That lack of definitions is creating, at best, confusion,” said Jennifer O’Bryan, chair of Commerce’s Sensors and Instrumentation Technical Advisory Committee. Some terms in the rule, such as deep convolutional neural networks, rotational normalization and rotational patterns, “desperately need some sort of definition to make sure that they don't intrude on certain purely commercial technology spaces that use similar AI software,” said O’Bryan, government affairs director for SPIE, an international society for optics and photonics. Stakeholders wish Commerce had issued the rule for public comment before it took effect, saying industry expertise is critical for export controls that involve complex technologies. “To put out an interim rule or a draft rule and have it go into effect immediately before there's any period of public comment just seems incongruous with the principles that we grow up with in this democracy,” said Barbara Ryan, World Geospatial Industry Council policy adviser. The department's Bureau of Industry and Security declined comment.