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China's Generative AI Rules Target Public-Facing Products Only

Updated: Jan 8

China eases regulations on generative artificial intelligence (AI) industry to support development while emphasizing security concerns.

Artificial Intelligence
Credits: REUTERS

China has released updated regulations to manage its thriving generative AI sector, adopting a more lenient approach compared to a previous draft. Effective from August 15, the interim rules require security assessments only from providers offering services to the public, allowing greater flexibility for companies focused on enterprise solutions. Analysts view the revised measures as market-friendly, striking a balance between quality requirements and practicality. The Cyberspace Administration of China (CAC) aims to encourage generative AI technology while ensuring adherence to security protocols and core socialist values.

The previous draft's stringent standards for data quality and output accuracy have been scaled back, with the final version mandating companies to take "effective measures" towards achieving these goals. Notably, companies such as Baidu and Alibaba have made significant investments in China's generative AI landscape, yet the absence of clear regulations delayed the public release of chatbot products. Instead, Chinese tech firms focused on developing industrial applications. Recently, joined the race by introducing ChatRhino, an enterprise-oriented large language model.

Analyst Kai Wang from Morningstar expressed that the current regulations align with market expectations and convey a positive message that regulators are facilitating large-scale product launches in China. The nation sees generative AI as a sector where it aims to rival the United States, setting its sights on becoming a global leader by 2030. China's proactive regulatory stance places it ahead of other countries grappling with establishing guidelines for generative AI, fueled by the success of OpenAI's ChatGPT chatbot.

Balancing safety concerns and copyright protection with an innovation-friendly environment remains crucial for the development of generative AI. The CAC reiterated that content generated by generative AI must align with China's core socialist values. Intellectual property rights must be safeguarded, emphasizing the use of legitimate data sources. China also plans to foster the growth of generative AI algorithms and semiconductors, along with participating in the formulation of international regulations. The regulator called for scientific and innovation-compatible supervisory methods from relevant national authorities.

  • China softens regulations on its generative AI industry, supporting technological development while ensuring security.

  • The interim rules, effective from August 15, require security assessments only for providers offering public services.

  • Analysts view the revised measures as market-friendly, striking a balance between quality requirements and practicality.


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