China takes big step in AI regulation

() — China published new rules on generative artificial intelligence (AI), becoming one of the first countries in the world to regulate the technology behind popular services like ChatGPT.

The Cyberspace Administration of China, the country’s main Internet watchdog, on Thursday released a set of updated guidelines for managing the burgeoning sector, which has caused a furor around the world. The rules will go into effect on August 15.

Compared to a preliminary draft published in April, the published versionThe so-called “interim measures” appears to have relaxed several previously announced provisions, suggesting that Beijing sees an opportunity in the fledgling sector as the country tries to revive economic growth to create jobs.

Last week, regulators fined fintech giant Ant Group nearly $1 billion, in a move that appeared to finally close a chapter in a broad regulatory crackdown focused on Chinese tech giants. Many of them, such as Alibaba (BABA), Baidu (BIDU) and JD.com (JD), are launching their own versions of AI chatbots.

From now on, the rules will only apply to services available to the general public in China. Technologies developed in research institutions or intended for foreign users are also exempt.

The current version has also removed punitive measures, which included fines of up to 100,000 yuan ($14,027) for violations.

The state “encourages the innovative use of generative AI in all industries and fields” and supports the development of “safe and reliable” chips, software, tools, computing power and data sources, according to the document announcing the standards.

China also urges platforms to “participate in the formulation of international norms and standards” related to generative AI.

Among the main provisions, however, is a requirement for generative AI service providers to conduct security reviews and register their algorithms with the government if their services can influence public opinion or can “mobilise” the public.

US-China rivalry?

Generative AI is the technology that platforms like ChatGPT are based on.

The popularity of this service has exploded in recent months, with Chinese tech companies rushing to launch their own versions, leading some critics to predict that this trend will stoke the existing rivalry between the United States and China in the field of emerging technologies.

US Senator Mark Warner warned last month that in the global race to create barriers to government use of artificial intelligence, China is far ahead. China is “way ahead,” he told Politico at the Global Technology Summit.

Chinese companies appear to be waiting for the updated standards to be released before officially launching their ChatGPT-like services to the public.

So far, the generative AI services from Baidu, Alibaba, and JD.com are in the testing phase or are being used only by corporate users. Under the rules, regulators still need to approve their products.

A key question about China’s regulatory strategy has been whether regulations could end up stifling innovation in the AI ​​industry, which lies at the heart of the country’s ambition to compete with the United States in high-tech.

“China’s approach to regulating AI will likely be consistent with its approach to regulating other prominent technology areas, such as the Internet or social media, where it applies strict censorship to control the flow of information,” the officials noted. Citi analysts in a research note earlier this week.

Regulators appear to be aware of the concerns. In the guidelines they just published, they stress the need to find a balance between “development and security”.

The standards will be overseen by seven national agencies, including the cyberspace watchdog, the National Development and Reform Commission and the Ministry of Education.