This week, Alan Rozenshtein, a law professor focused on AI and cybersecurity, and Kevin Frazier, an expert in technology policy, delve into the latest developments in AI regulation. They discuss Trump's repeal of strict limits on AI technology diffusion and its implications for U.S. global strategy. The duo also tackle the federal preemption of state AI legislation and its potential risks to public accountability. With humor, they reflect on personal experiences with technology and the broader societal impact of AI on children.
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insights INSIGHT
Understanding AI Diffusion Challenges
AI diffusion involves exporting components like chips, models, and technology to other countries.
The Biden rule limited diffusion to friendly countries but faced practicality challenges, leading to its repeal.
insights INSIGHT
Balancing Control and Promotion
Balancing control, promotion, and leverage defines diffusion policy effectiveness.
Too strict diffusion limits push countries toward China, risking US AI leadership.
insights INSIGHT
Compute Chips Drive AI Diffusion
Compute chips are the main bottleneck for AI diffusion and innovation.
China innovates even with restricted or lower-powered chips, making diffusion control complex.
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This week, Scott sat down with the AI-oriented Lawfare Senior Editors Alan Rozenshtein and Kevin Frazier to talk through the week’s top AI-focused news stories, including:
“Oh Sure, Now He’s Into Free Trade.” President Trump has repealed the Biden administration’s rule setting strict limits on the diffusion of high-end AI technology, opening the door to the global transfer of the technologies powering U.S. AI development, including advanced chipsets. And we’re already seeing results of that policy in a recent deal the president signed with the UAE that would work toward the transfer of advanced semiconductors. How should AI diffusion fit into the broader global strategy surrounding the AI industry in the United States? And what approach does the Trump administration seem inclined to take?
“Paving Over the Playing Field.” House Republicans recently included a provision in a House bill that would have preempted state efforts to legislate on and regulate the AI industry for a decade. Is this sort of federal preemption a prudent step given the broader competitive dynamics with China? Or does it go too far in insulating AI companies and users from accountability for their actions, particularly where they put the public interest and safety at risk?
“Speechless.” A federal district court in Florida has issued a notable opinion of first impression in a tragic case involving a teenager who committed suicide, allegedly as a result of encouragement from an AI bot powered by the company character.ai. Among other holdings, the judge concluded that the AI’s output was not itself protected speech. Is this holding correct? And what impact will it have on the development of the AI industry?
In Object Lessons, the AI Guys went surprisingly analog. Alan recommended some good, ol’ fashioned, 19th-century imperial espionage with “The Great Game,” by Peter Hopkirk. Kevin, meanwhile, is keeping an eye on a different kind of game: the NCAA Division I Baseball Championship, in which he’s throwing up some Hook 'em Horns for Texas. And Scott is trying to “Economize” his time with The Economist’s Espresso app, a quick, curated read that fits neatly into a busy morning.
The Lawfare Podcast 
