The United States finalizes restrictions on investment in artificial intelligence and crucial technology in China

According to Charlie Dai, Vice President and main analyst at Forrester, businesses might have to reconsider their strategic priorities, potentially resulting in an unnecessary rise in innovation expenses.

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US finalizes curbs on investment in AI and critical technology in China

According to Charlie Dai, Vice President and main analyst at Forrester, businesses might have to reconsider their strategic priorities, potentially resulting in an unnecessary rise in innovation expenses. At the same time, regulatory issues will push companies outside the United States to further emphasize localization strategies to attain self-reliance in critical domains, potentially fostering more isolated innovation ecosystems.

The updated regulations may also necessitate American companies to meticulously monitor both national and international regulatory changes and establish flexible compliance initiatives to promptly adjust to evolving demands.

Thomas George, the president of Cybermedia Research, commented, “These limitations could reduce research and development investments and have far-reaching economic repercussions, hindering progress in key sectors such as semiconductor manufacturing, quantum computing, and artificial intelligence, consequently impeding general technological advancement.”

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