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Legal analysis from Mayer Brown on a 2024 BIS proposed rulemaking requiring AI developers and compute cluster operators to report advanced AI activities to the US government, relevant to AI governance and compute oversight discussions.

Metadata

Importance: 52/100news articleanalysis

Summary

This Mayer Brown legal analysis covers the Bureau of Industry and Security (BIS) proposed rule requiring companies to report the development of advanced AI models and large compute clusters to the US government. The proposal aims to enhance federal oversight of frontier AI development by mandating transparency about capabilities and infrastructure. It represents a significant regulatory step toward monitoring AI progress at the hardware and model level.

Key Points

•BIS proposed requiring companies to report when developing advanced AI models exceeding certain compute thresholds, enabling government monitoring of frontier AI.
•The rule targets both AI model developers and operators of large compute clusters, covering key infrastructure for powerful AI systems.
•Reporting requirements are framed around national security concerns, reflecting Commerce Department's role in export controls and dual-use technology oversight.
•The proposal aligns with the Biden Executive Order on AI (Oct 2023), which directed BIS to establish reporting mechanisms for advanced AI development.
•Legal analysis highlights compliance obligations, scope of covered entities, and potential implications for the AI industry's regulatory landscape.

Cited by 2 pages

Page	Type	Quality
Compute Thresholds	Concept	91.0
US Executive Order on Safe, Secure, and Trustworthy AI	Policy	91.0

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September 17, 2024

# US Department of Commerce Issues Proposal to Require Reporting Development of Advanced AI Models and Computer Clusters

Authors:

- [Adam S. Hickey](https://www.mayerbrown.com/en/people/h/adam-hickey),
- [Stephen Lilley](https://www.mayerbrown.com/en/people/l/lilley-stephen),
- [Tamer A. Soliman](https://www.mayerbrown.com/en/people/s/soliman-tamer-a),
- [Aaron Futerman](https://www.mayerbrown.com/en/people/f/aaron-futerman),
- Emily King

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On September 9, 2024, the US Department of Commerce’s (“Commerce”) Bureau of Industry and Security (BIS) [released](https://www.bis.gov/press-release/commerce-proposes-reporting-requirements-frontier-ai-developers-and-compute-providers) notice of a [proposed rule](https://www.govinfo.gov/content/pkg/FR-2024-09-11/pdf/2024-20529.pdf) to create a mandatory reporting requirement for artificial intelligence (AI) developers and computing providers concerning the development, training, and testing of powerful AI models. The rule—titled “Establishment of Reporting Requirements for the Development of Advanced Artificial Intelligence Models and Computing Clusters”—stems from the Biden Administration’s Executive Order 14110 (the “AI EO”).

#### Background

The AI EO directed Commerce to use its authorities under the Defense Production Act to collect certain information from companies that intend to develop “dual-use foundation models” [1](https://www.mayerbrown.com/en/insights/publications/2024/09/us-department-of

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