Vole told Trump that the current restrictions could inadvertently drive US allies into the open arms of Chinese technology providers, undermining America's AI leadership.

Top Vole Brad Smith cautioned that limiting access to American-made semiconductors might compel nations like India, Israel, and Singapore to seek AI infrastructure from China.

This shift could bolster China's position as a long-term tech partner, a scenario that seems counterproductive to US interests.

The controversial export controls, slated to take effect in May, were initially introduced during the final days of President Joe Biden's administration. They establish a three-tier licensing system for AI chip exports.

While G7 countries and Taiwan face minimal restrictions, over 100 nations, including key US allies, are in a middle tier with capped access to American AI chips. Critics argue this approach could stifle innovation and push allies toward Chinese alternatives.

Smith's concerns echo throughout the tech industry. Powerhouses like Nvidia and various European Union representatives have criticised the rules, suggesting they may hinder competitiveness and inadvertently boost China's AI capabilities.

Smith emphasised that while national security is paramount, the current strategy might backfire, enhancing China's position in the AI sector and negatively impacting U.S. tech firms that rely on global markets.

The Trump administration is reviewing industry stakeholders' feedback to balance national security interests with economic considerations.

Vole advocates for a more nuanced policy that supports US allies and maintains American influence in AI technology rather than driving them toward alternative partnerships with China.