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Kessler defends rescission of late-administration AI diffusion rule, committee presses on licenses and IT needs
Summary
Under Secretary Kessler told lawmakers the Biden-era AI diffusion rule was "hastily constructed" and unsuitable for implementation; members pressed BIS on license-processing timelines, whether the agency adhered to interagency review on license actions, and on the need to modernize BIS IT and provide the committee a formal budget justification.
Under Secretary Kessler told the committee he rescinded the Biden administration's AI diffusion rule because it was unworkable and risked disrupting global markets for critical technologies.
"The diffusion rule was very problematic. The diffusion rule was something that the Biden administration did, in its final hours before leaving office. It was hastily constructed. It established a regime, a worldwide regime for controlling chips that was, bureaucratic, heavy handed," Kessler said. He added that the rule "drew arbitrary distinctions between different countries" and "was not ready for prime time,"…
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