US Shifts Data Protection Policies: Focus on China and AI Risks

The United States is reevaluating its data protection policies, particularly concerning China, due to the potential risks associated with advancements in technology and artificial intelligence (AI). This shift is driven by concerns over national security and the need to maintain a technological advantage over China.

US Shifts Data Protection Policies: Focus on China and AI Risks

US Shifts Data Protection Policies: Focus on China and AI Risks - 1180075931

( Credit to: Sg )

The United States is reevaluating its data protection policies, particularly concerning China, due to the potential risks associated with advancements in technology and artificial intelligence (AI). This shift is driven by concerns over national security and the need to maintain a technological advantage over China.

President Joe Biden has taken steps to expand national security measures, expressing concerns over potential threats posed by Chinese vehicles and technology. He has issued an order to restrict the transfer of sensitive personal data abroad, fearing that such data could be exploited for tracking individuals or training AI models. Adversaries could potentially use this technology for espionage or blackmail purposes by identifying hidden patterns across datasets.

Washington is starting to acknowledge the strategic and national security value of data. The Commerce Department's investigation into risks associated with Chinese tech in connected vehicles is a much-needed examination of the future internet's application layer. Further investigations into data generated by the internet of things are expected.

Previously, Chinese companies were legally permitted to purchase bulk data from the United States, creating an imbalance. The latest order closes a loophole in which businesses could acquire sensitive information. The United States aims to strike a balance between economic growth, national security, and data governance, aligning itself with the practices of its close partners such as the European Union and Japan.

One crucial factor in this shift is the role of AI, which has the capability to rapidly analyze and manipulate large volumes of data for espionage or cyber operations. The United States is investing in policies such as the CHIPS Act to stay ahead in AI. Commerce Secretary Gina Raimondo highlights the transformative impact of AI on the demand for advanced chips and emphasizes the goal of establishing a domestic supply chain for semiconductor production.

It remains to be seen whether these actions by the United States will facilitate greater convergence among data governance regimes or lead to uncharted territory in terms of digital governance. The alignment of data protection policies among countries will be an interesting development to watch in the future.

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