Business News Report
August 15, 2023

China Implements New AI Regulations Amid EU and US Strategies

In Brief

China enforces robust AI regulations, contrasting EU and US approaches.

Global AI governance evolves amid concerns over accountability, innovation, and consumer protection.

China Implements New AI Regulations Amid EU and US Strategies

China has taken another step in AI regulation with its new “Administrative Measures for Generative Artificial Intelligence Services.”

While the EU and the US are still shaping their respective AI regulatory frameworks, China’s Ministry of Industry and Information Technology (MIIT) has introduced comprehensive regulations for generative AI applications.

The regulations demand AI service providers operating in China provide a transparent approach to accountability, content moderation, data handling, and user protection.

The “Administrative Measures for Generative Artificial Intelligence Services” mandates that AI apps operating within China obtain an administrative license. Moreover, the regulations also encompass responsibilities for generative AI service providers, including content moderation, responsible data usage, user protection, and adherence to intellectual property rights. 

Key provisions include tagging generated content, user data privacy safeguards, and security assessments for AI services tied to public opinion or social mobilization attributes. Notably, these regulations seek a balance between fostering AI industry growth and ensuring compliance. 

Chinese tech giants such as Baidu and Alibaba, have reached significant milestones in generative AI. However, the evolving regulatory environment is expected to overhaul both their strategies and the broader AI landscape within the country.  With the implementation of these new regulations, marketing agencies in China are now expected to maneuver through the repercussions these rules might have on their use of generative AI tools.

Last month, China’s Cyberspace Administration (CAC) introduced a licensing system.  According to CAC, companies must register their generative AI products, evaluate security measures, and adhere to socialist values.

AI Regulation Around the Globe

As China bolsters its AI regulations, a divergence emerges in how AI governance is approached in the EU and US.

The EU strives for AI accountability through its framework, yet apprehensions arise regarding potential effects on innovation and competitiveness.

The EU Parliament plans to ban biometric surveillance and make generative AI systems more transparent and accountable. The region also wants companies to reveal the sources and impacts of their AI tools. However, many business leaders oppose the draft AI regulation, saying it would hurt Europe’s innovation and economy.

OpenAI’s CEO Sam Altman warned that he might leave Europe if the rules are applied. He argued that the EU AI Act should redefine general-purpose AI systems.

In contrast to Europe, where lawmakers are advancing an AI law to address risky applications, the US faces disagreements on the most effective approach to managing the technology.

The Biden administration has engaged in discussions with AI companies, academia, and civil society groups to understand safety concerns and establish guiding principles.

Likewise, Congress has called for AI regulation, with lawmakers proposing to create oversight agencies, liability for AI-driven disinformation, and licensing for new AI tools. While a few hearings ignited debates about AI risks and potential regulations, the proposed bills are in the early stages and need significant backing for progression. 

Federal agencies, such as the Federal Trade Commission (FTC), have also begun to address AI-related issues. The FTC’s recent investigation into OpenAI’s ChatGPT demonstrates efforts to ensure consumer protection and competition laws cover AI-related challenges.

The trajectory of AI regulation in the US remains complex and uncertain. While lawmakers, policymakers, and regulatory bodies grapple with these challenges, the endeavor to harmonize innovation, safeguard consumers, and confront AI-associated risks remains in constant flux.

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About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

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Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

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