Will China's New AI Rules Change Everything (for the West)?

In April 2023, the Chinese internet regulator made a significant move in the AI industry by publishing a draft regulation on generative AI, termed "Measures for the Management of Generative Artificial Intelligence Services" 1 . This development was largely driven by the rampant launch of large-language-model chatbots in China and the US, and it reflects China's tradition of aggressive intervention in the tech industry.

Key regulations in the draft include:

1. Data used to train generative AI models should not infringe on intellectual property or privacy.
2. Algorithms should not discriminate against users based on race, ethnicity, age, gender, and other attributes.
3. AI companies must be transparent about how they obtained training data and how they hired humans to label the data 1 .

Furthermore, users of generative AI tools are required to register with their real identities, similar to the practice on social platforms in China. Also, the content generated by AI software should "reflect the core values of socialism" 1 .

Despite the regulatory stringency, the draft also encourages companies to continue working on AI, as reflected in the relatively small proposed maximum fine of 100,000 RMB (about $15,000) for violating the rules 1 .

These regulations have been rapidly developed, showcasing China's ability to react swiftly to new tech phenomena, despite the piecemeal nature of this approach 1 .

These new rules, while not finalized as of June 2023, represent a significant step in AI regulation, prompting global stakeholders to pay close attention to the evolving regulatory landscape 1 . As we anticipate the finalized rules and their eventual implementation, it's crucial to reflect on their potential impact on the global AI industry, particularly in the West.

China's new draft regulations on generative AI could have profound implications for the global AI industry. It's important to note that while the AI industry is global in nature, the regulatory frameworks that govern it are still largely regional. As such, China's new regulations could set a precedent that other countries might follow or react against.

The rapid development and deployment of China's draft regulations could serve as a wake-up call for Western countries, prompting them to expedite their own regulatory efforts. The European Union, for example, has been working on its AI Act for years, a process that contrasts with China's rapid regulatory response 1 . Seeing China's swift action might encourage Western regulators to speed up their own legislative processes, resulting in a global acceleration of AI governance.

The potential impact of China's generative AI regulations on the global AI industry, particularly in the West, underscores the significance of international dialogue and cooperation in the realm of AI governance. As AI technologies continue to advance and permeate every aspect of our lives, it is increasingly crucial that regulatory frameworks evolve in tandem, guided by a shared commitment to uphold ethical standards and protect the public interest.