Welcome to the Akin Intelligence September-October recap. Around the one-year anniversary of the AI Executive Order, the White House announced that agencies had carried out their directives. Members of Congress introduced a handful of new bills but slowed during the lead-up to the election and the FTC announced a first wave of actions against deceptive AI companies. Meanwhile, the EU continued its efforts related to its AI Act and began the drafting process for the companion General-Purpose AI Code of Practice.
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Akin Spotlight
BIS Announces New Semiconductor Manufacturing Equipment Rule
On December 2, 2024, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) announced an interim final rule that significantly revises controls on advanced computing and semiconductor manufacturing items (the SME Rule). The SME Rule is highly complex and intended to inhibit China's ability to develop an indigenous semiconductor ecosystem, including capabilities to manufacture advanced semiconductors, and to slow the PRC's development of advanced AI. The SME Rule clarifies, inter alia, export restrictions applicable to software license keys. It states that software license keys, which allow users to use software or hardware that is "locked" and unusable without a license key, are classified and controlled under the same Export Control Classification Number as the corresponding software to which they provide access—or in the case of hardware, the corresponding software group. Another key aspect of the SME Rule is its addition of new controls and a corresponding license exception for high-bandwidth memory (HBM), which is found in most advanced semiconductors that power advanced AI models. These controls will impact both HBM stacks and semiconductors that contain HBM stacks. BIS notes that "[a]ll HBM stacks currently in production" exceed the memory bandwidth density threshold specified in the new rule.
Federal Action
White House Releases Fact Sheet on Administration's AI Accomplishments
On October 30, 2024, the White House released a Fact Sheet announcing that federal agencies completed all actions assigned to them since the Executive Order on the Safe, Secure and Trustworthy Development and Use of artificial intelligence was released a year ago. The agencies took numerous actions to manage artificial intelligence's (AI) risk to safety and security, protect workers, consumers, privacy and civil rights, create AI innovations and bring AI talent into government.
White House Issues National Security Memorandum on AI
On October 24, 2024, the Biden administration issued a National Security Memorandum (NSM) on AI. The NSM directs the U.S. government to take actions to ensure that the United States leads the world's development of safe AI, harness cutting-edge AI technologies to advance U.S. national security and advance international consensus and governance around AI. A Fact Sheet on the NSM can be found here.
Commerce and DOE Sign MOU on AI Development and Use
On October 30, 2024, the U.S. Departments of Commerce and Energy announced a memorandum of understanding (MOU) signed earlier this year to collaborate on safety research, testing and evaluation of advanced AI models and systems. In addition to facilitating joint research efforts and information sharing, this agreement enables the U.S. AI Safety Institute and National Institute of Standards and Technology to lend their expertise to the Department of Energy and its National Laboratories. The agencies intend to evaluate the impact of AI models on public safety.
Commerce Opens AI Development Funding Competition
On October 30, 2024, the U.S. Department of Commerce announced a Notice of Funding Opportunity (NOFO) called the CHIPS AI/AE for Rapid, Industry-informed Sustainable Semiconductor Materials and Processes (CARISSMA) funding opportunity. This funding is geared towards activities that will use cutting-edge AI and autonomous experimentation (AE) technologies to support the long-term viability of advanced semiconductor manufacturing. CHIPS for American anticipates approximately $100 million in federal funds, with individual awards ranging from approximately $20 million to $40 million. Expected participants include teams of universities and other research entities, semiconductor industry partners, emerging research institutions and civil society organizations.
Commerce Announces Intended Investments in AI Development
On October 2, 2024, the U.S. Department of Commerce issued a Notice of Intent (NOI) to announce an open competition demonstrating how AI can assist in developing new sustainable semiconductor materials and processes. CHIPS for American anticipates up to $100 million in funding to award recipients that develop university-led AI-powered autonomous experimentation (AI/AE) relevant to sustainable semiconductor manufacturing. The open competition will also aim to expand the participation of universities in the semiconductor research and development ecosystem.
Commerce and State Announce Convening of AI Safety Institutes
On September 18, 2024, the U.S. Departments of Commerce and State announced that they would co-host the inaugural convening of the International Network of AI Safety Institutes on November 20-21, 2024, in San Francisco, California. The goal of the convening is to start the Network's collaboration ahead of the AI Action Summit in Paris in February 2025. The member countries of the Network are Australia, Canada, the European Union (EU), France, Japan, Kenya, South Korea, Singapore, the United Kingdom and the United States.
Commerce Releases NPRM on Reporting Requirements for Frontier AI Developers
On September 9, 2024, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) released a Notice of Proposed Rulemaking (NPRM) outlining a new reporting requirement for AI developers and cloud providers. The rule requires developers to provide detailed reporting to the federal government on information such as developmental activities and cybersecurity measures. Comments must be received by BIS no later than October 11, 2024.
Commerce Appoints New AI Advisory Committee Members
On September 5, 2024, U.S. Secretary of Commerce Gina Raimondo announced the appointment of four new members to the National Artificial Intelligence Advisory Committee (NAIAC). The NAIAC advises the President and the White House on a range of issues related to AI. The newly appointed members are:
- Aneesh Chopra, Chief Strategy Officer of Arcadia
- Christopher Howard, Executive vice president and chief operating officer of ASU
- Angie Cooper, Executive Vice President of Heartland Forward
- Beth Cobert, former President of the Markle Foundation.
NIST Gives Award to Carnegie Mellon to Establish AI Research Center
On September 24, 2024, U.S. Secretary of Commerce Gina Raimondo announced that the National Institute of Standards and Technology (NIST) has awarded $6 million to Carnegie Mellon University (CMU) to establish a joint AI research center. The CMU/NIST AI Measurement Science & Engineering Cooperative Research Center will focus on developing AI system-level tooling, metrics, evaluation procedures, development processes and best practices for safe AI systems. The new center's work will support the NIST AI Innovation Lab.
CDAO Hosts Responsible AI in Defense Forum
From October 28–30, 2024, the Department of Defense (DoD) Chief Digital and Artificial Intelligence Office (CDAO) hosted a "Responsible AI in Defense Forum," an event that included defense leaders, AI experts and policy-makers to focus on advanced topics in Responsible AI (RAI). The forum provided an opportunity to discuss technical capabilities and challenges and to examine RAI in the context of international military cooperation.
NTIA Requests Comments on Challenges of AI Growth
On September 4, 2024, the National Telecommunications and Information Administration (NTIA) published a request for comments on challenges regarding the development of critical and emerging technologies, including AI. The request focuses on identifying opportunities for the U.S. government to improve data centers' market development, supply chain resilience and data security, which play a critical role in the deployment of AI models and other AI applications. Comments are due to the NTIA by November 4, 2024.
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