“Companies might also need to reassess their strategic priorities, which may lead to an unnecessary increase in innovation costs,” said Charlie Dai, VP and principal analyst at Forrester. “On the other hand, regulatory concerns will force enterprises outside the US to further prioritize localization strategies to achieve self-sufficiency in critical areas, potentially leading to increasingly isolated innovation ecosystems.”
The new rules may also require US enterprises to closely monitor both domestic and international regulatory shifts and establish agile compliance programs to adapt swiftly to evolving requirements.
“These constraints can also diminish R&D investments and have profound long-term economic effects, stifling advancement in pivotal sectors like semiconductors, quantum computing, and AI, ultimately hampering overall technological progress,” said Thomas George, president of Cybermedia Research.