United States of America: Department of Commerce rescinded Artificial Intelligence Diffusion Rule

On 12 May 2025, the Department of Commerce announced the rescission of the Artificial Intelligence (AI) Diffusion Rule, originally issued on 15 January 2025, with compliance requirements scheduled for 15 May 2025. The Bureau of Industry and Security (BIS) initiated a Federal Register notice to formalise the rescission and outlined plans to introduce a replacement rule at a later date. The AI Diffusion Rule would have restricted chip exports to adversarial jurisdictions such as China, Russia, Iran, and North Korea, while limiting exports to around 120 countries and exempting 18 allies, including Australia, Canada, the UK, and Japan.