China has introduced interim measures to regulate its rapidly growing generative artificial intelligence (AI) industry, with the rules set to take effect on August 15. The aim is to provide clarity and support the development of AI technology, particularly in services offered to the public. This move comes as Beijing signals the end of its crackdown on the tech industry and looks to boost economic recovery following the easing of COVID-19 restrictions.
The recently announced rules clarify the scope of regulations and follow draft rules published in April, which required companies to undergo security assessments before launching AI services to the public. The current version of the rules aligns with market expectations and sends a positive signal to companies in China, indicating that regulators are facilitating the large-scale launch of AI products.
China considers AI a critical sector in which it aims to rival the United States and become a global leader by 2030. By proactively setting regulations, China is seen as ahead of the curve compared to other countries grappling with establishing guidelines for AI technology. Balancing safety concerns, copyright protection, and fostering an environment conducive to innovation are key considerations in these efforts.
China has witnessed significant investment in its generative AI sector, with numerous companies launching AI models. However, companies have been hesitant to introduce chatbots to the public until the government finalizes regulations and approves their products.
The Cyberspace Administration of China (CAC) has emphasized the need for content generated by generative AI to align with China’s core socialist values. Intellectual property rights must be protected, and legitimate data sources should be utilized.
The measures announced specifically target generative AI services provided to the Chinese public and do not apply to those working solely on generative AI technology without intending to offer public services. China aims to encourage technological development, including generative AI algorithms and semiconductors, while actively participating in the formulation of international rules.
The CAC calls for regulatory authorities to adopt scientific and innovation-friendly supervisory methods. Chinese tech giants such as Alibaba Group and Baidu Inc have already developed their own chatbot models. JD.com has also joined the race by recently launching an enterprise-facing large language model named ChatRhino.
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