Protecting American AI: What You Need to Know About the US Department of Commerce’s New Interim Final Rule
As an expert in export controls and sanctions, I’m here to guide you through the recently published Interim Final Rule (IFR) from the US Department of Commerce’s Bureau of Industry and Security (BIS). If you’re a professional navigating the complexities of due diligence, restrictive measures, and dual-use items, this rule can significantly impact your work. I’ll explain how this new framework shapes the export and security controls for artificial intelligence (AI) and highlight actionable steps for staying compliant.
Why This Matters
Released on January 13, 2025, the IFR establishes a framework for managing the global diffusion of AI technologies while tightening controls on critical hardware, software, and advanced model weights. For professionals like you, this is more than just a regulatory update; it’s an opportunity to align your internal compliance programme (ICP) with cutting-edge governance practices and ensure your organisation remains competitive.
This rule is not just about restrictions; it also paves the way for growth by creating structured pathways for companies to expand responsibly. If you’re in AI, computing, or data centre operations, this is your cue to act.
Watch the Public Briefing by BIS
Key Features of the IFR
1. Expanded Controls on Advanced AI Chips
The IFR introduces a global licensing requirement for advanced computing integrated circuits (ICs), computing equipment, and related technologies (“Advanced AI Chip Items”). These are critical for AI innovation but also pose security risks if diverted improperly.
The framework adopts a three-tiered country structure:
Group 1: Whitelisted Country Group
Includes the US and 18 allied countries with low diversion risks.