Americans for Prosperity Foundation Calls for Withdrawal of AI Reporting Requirements in Defense Production Act Rule

Arlington, VA – Today, Americans for Prosperity Foundation (AFP Foundation) submitted a formal comment opposing the Bureau of Industry and Security’s (BIS) proposed rule that abuses Korean-war era Defense Production Act (DPA) authority to establish reporting requirements for the development of advanced artificial intelligence (AI) models and computing clusters.

CLICK HERE TO VIEW THE COMMENT.

The proposed regulation, issued under the DPA, would impose burdensome requirements on AI developers, potentially stifling innovation and threatening proprietary business information.

The rulemaking stems from President Biden’s Executive Order on AI, which misuses the DPA to exert excessive control over AI development—an unnecessary and counterproductive move. The invocation of the DPA in this context is an inappropriate use of emergency powers.

“AI is a rapidly evolving technology that holds transformative potential across industries,” said Thomas Kimbrell, investigative analyst at Americans for Prosperity Foundation. “The proposed reporting requirements will deter innovation by adding unnecessary red tape, placing sensitive proprietary information at risk, and expanding government oversight into areas it lacks clear authority.”

AFP Foundation’s comment outlines concerns about the overreach of the administration’s powers under the DPA, stressing that AI does not constitute an emergency warranting such draconian measures. Last year, AFP Foundation launched its Emergency Powers Reform Project to end the rampant government abuse of emergency powers that undermines the separation of powers and imperils individual rights.

The proposed rule would subject AI developers to ongoing and indefinite reporting requirements, which could have far-reaching consequences for the industry. The letter further notes that the Biden administration has a history of overstepping its emergency powers, citing past instances of DPA misuse for non-defense-related purposes.

“The administration’s actions are a dangerous precedent,” Kimbrell continued. “Rather than relying on emergency powers, the government should collaborate with the private sector to foster innovation and safeguard sensitive information, as we’ve seen in successful technology advancements in the past.”

For media inquiries, please contact media@afphq.org.

About Americans for Prosperity Foundation

Americans for Prosperity Foundation empowers and educates Americans on the proven and principled solutions to our country’s most challenging issues.

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