US AI Regulation: It's Happening, Just Not Where You Think

The Illusion of Deregulation in US AI Policy

The current narrative surrounding US artificial intelligence (AI) policy often paints a picture of a hands-off approach, a strategic retreat from regulation. Voices like JD Vance championing a laissez-faire approach and warnings against bureaucratic overreach from the Trump administration reinforce this perception. However, this narrative is misleading. While the US federal government appears to be taking a light touch towards AI applications like chatbots and image generators, it's actively intervening in the foundational building blocks of these systems.

As highlighted in a recent Guardian article by Sacha Alanoca and Maroussia Lévesque, this disconnect creates a critical misconception. The reality is that Washington is strategically regulating the core components of AI, often hidden within dense administrative language.

Keyword: AI Regulation

The Focus on AI Chips: A National Security Imperative

The most prominent example of this hidden regulation lies in the realm of AI chips. Both the Trump and Biden administrations have demonstrated a willingness to intervene in this area, viewing it as a matter of national security. The Biden administration has implemented measures to restrict exports of advanced AI chips to competing nations like China. Similarly, the Trump administration has approved sales of chips to countries like the UAE, demonstrating a nuanced approach.

Keyword: AI Chips

From Application-Focused Rules to a National Security Mindset

The evolution of AI regulation globally reveals a distinct pattern. Initially, regulations focused on application-specific concerns such as discrimination, surveillance, and environmental impact (the first wave). Subsequently, nations like the US and China adopted a national security mindset, prioritizing military advantage and preventing malicious actors from exploiting AI (the second wave). A third wave is now emerging, combining societal and security concerns, proving to be a more effective approach.

Keyword: Global AI Governance

The AI Stack: Regulation at the Core

Understanding the “AI stack” – the complete technology infrastructure underpinning AI systems – is crucial to grasping the true nature of US AI policy. This stack encompasses everything from data collection to the algorithms that transform user queries into results. The US approach, as described in the article, is characterized by a “light touch” at the surface level (applications) and an “iron grip” at the core (building blocks like chips). This strategic choice reflects a redefinition of where regulation is most effective.

Keyword: AI Stack

Why Transparency is Essential

The current lack of transparency surrounding US AI regulation is problematic. It's difficult to justify a hands-off approach to potential societal harms while simultaneously intervening aggressively in the chip market for national security reasons. Recognizing the full spectrum of regulation, from export controls to trade policy, is the first step towards fostering effective global cooperation in AI governance. Without this clarity, discussions about global AI governance will remain superficial.

Keyword: Transparency in AI

Actionable Takeaways

• Stay Informed: Follow developments in AI chip technology and export controls.
• Advocate for Transparency: Encourage policymakers to be more open about the rationale behind AI regulations.
• Support Global Cooperation: Promote international dialogue and collaboration on AI governance.

For further reading, explore these resources: AI Policy Analysis, Global AI Governance Frameworks