China has released new measures to regulate its thriving generative artificial intelligence (AI) industry, adopting a more moderate approach compared to a previous draft. The government also expressed its commitment to supporting the development of this technology.
The interim rules, which will come into effect on August 15, mark a shift in approach following the end of China’s prolonged crackdown on the tech industry. This move aims to stimulate the country’s economy, which has been recovering slower than expected after the lifting of COVID-19 restrictions.
Analysts have noted that these regulations are less burdensome than the previous draft proposed in April. The final version emphasizes China’s intention to be supportive of generative AI technology while ensuring security.
In a statement on Thursday, the Cyberspace Administration of China (CAC) clarified that only providers offering services to the public would be required to undergo security assessments. This suggests that companies developing enterprise-focused products would have some flexibility.
“The earlier draft regulations set unrealistic standards for training data quality and output accuracy, essentially demanding perfection. The final version has scaled back these requirements, only obliging companies to take ‘effective measures’ towards these goals,” explained Tom Nunlist, a technology analyst at research firm Trivium China.
China has witnessed significant investment in its generative AI sector, with companies like Baidu and Alibaba Group introducing numerous AI models. However, these companies have refrained from launching chatbots for public use until the Chinese government finalizes the rules and approves their products.
As a result, most Chinese tech firms have focused their efforts on finding applications for industrial purposes. On Thursday, JD.com joined the race by introducing an enterprise-focused large language model called ChatRhino.
“The current version of the rules aligns well with market expectations, signaling that regulators are clearing the path for Chinese companies to launch their products on a large scale,” commented Kai Wang, an analyst at Morningstar.
China’s Vision and Regulatory Challenges
China views AI as a crucial sector in which it aims to rival the United States, aspiring to become a global leader by 2030. The country is considered to be ahead in terms of regulation as governments worldwide grapple with establishing frameworks for this technology, popularized by the success of OpenAI’s ChatGPT chatbot.
When regulating AI, it is essential to balance safety concerns and copyright protection with creating an environment conducive to innovation.
In the statement released on Thursday, the CAC reiterated that generative AI content made available to the public must adhere to China’s core socialist values. Service providers are required to ensure the protection of intellectual property rights and should use legitimate data sources.
China aims to foster the development of generative AI algorithms, semiconductors, and actively participate in the formulation of international regulations for this field, according to the statement.
“Relevant national authorities should enhance their supervision methods to ensure scientific approaches that align with innovation and development,” stated the regulator.
© Thomson Reuters 2023
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Deepak Sen is a tech enthusiast who covers the latest technological innovations, from AI to consumer gadgets. His articles provide readers with a glimpse into the ever-evolving world of technology.
