The future of AI in China

Omar Adan
Omar Adan

Global Courant

Rapid developments in the field of generative artificial intelligence (AI) algorithms used to create new text, images, audio or other types of content – ​​concerns regulators worldwide.

These systems are often trained on personal and copyrighted data deleted from the internet, leading to fears about privacy and intellectual property. They can also be used to generate harmful substances misinformation and disinformation.

On August 15, 2023, a new Chinese law designed to regulate generative AI came into effect. This law, the last in a series of regulations which focuses on various aspects of AI, is internationally groundbreaking as the first law that specifically focuses on generative AI.

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It introduces new restrictions on companies offering these services to consumers, regarding both the training data used and the output produced.

Despite these new restrictions on businesses, the evolution of the draft text, combined with changes in the broader technology policy context, could be misinterpreted as an indication that China is beginning to relax its commitment to strong regulatory oversight of AI.

Commentators have been quick to note that the eventual generative AI regulation is significant diluted compared to an earlier draft published for comment. Requirements to take action within a three-month period to correct illegal content and ensure all training data and results are “truthful and accurate” have been removed.

It also clarified that these rules only apply to public-facing generative AI systems. A new provision was also added specifying that development and innovation should be given equal weight with the security and governance of systems.

In the broader context of technology policy, since late 2020 the Chinese government has used a variety of toolsincluding antitrust enforcement and data security.

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Alibaba founder Jack Ma in a file photo. Image: Facebook

The government also took what appeared to be extralegal measures that led to Jack Ma, co-founder of Alibaba, to disappear from the public eye after criticizing regulators in what is widely referred to as a “tech crackdown.”

But in line with the domestic economic problems faced by China, the intensity of this crackdown appears to have been relaxed and replace with one greater emphasis on domestic technological innovation.

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While compelling, these pieces of evidence are a red herring for understanding the future of AI policy in China. A significant change in China’s approach to AI management in the future is unlikely.

It is true that generative AI regulations have been watered down, but it is not unusual for the text of draft AI regulations to change after a consultation period. For example, explicit discrimination protection have been removed from a draft AI regulation aimed at recommendation systems in 2021.

The weakening of generative AI regulations was arguably more important than previous initiatives, but continued efforts to ensure that AI is effectively regulated, including a early design of what could potentially culminate in a new, comprehensive AI law is indicative of ongoing efforts to strengthen the country’s AI governance framework.

Likewise, the label “technological crackdown” is broadly applied to policies that affect society different government agencies, objectives and justifications.

While some policies – such as the investigations into tech companies – were largely reactionary and appear to have come to an end, establishing robust AI regulations has been a longer-term issue. policy ambition of the Chinese government, which is likely to continue.

Together, these factors suggest that China continues to refine the balance between innovation and control in its approach to AI governance, rather than embarking on a significant relaxation.

China’s pioneering efforts to implement AI regulations and its legacy of reactive measures restricting tech companies could create a chilling effect that dampens the sector’s near-term performance.

This challenge is further exacerbated by the impact of US semiconductor export controls on China’s AI sector, which has forced companies to solutions as the The most powerful chips are becoming scarce.

Although China has tried to support its AI industry in various ways, e.g financingproviding access to computersand wider reshuffling of the ministry designed to promote domestic innovation – it is unclear how fruitful these initiatives will prove.

Despite the potential impact on China’s AI industry in the short term, introducing regulations designed to control AI is essential to address the risks posed by these technologies.

These regulations and the practical tools they mandate limiting harm to individuals and disruptions to social stability. For example, requirements to watermark AI-generated content are essential for countering misinformation and disinformation.

China is guarding against AI-generated disinformation. Image: Screengrab

For comparison: the laissez-faire approach The measures taken by the United States have left the country ill-prepared to address these risks, which could cause this serious disruption in the upcoming 2024 presidential elections.

AI management tools also support Chinese ambitions global leadership in AI – for example, by developing international standards that would provide them with a competitive advantage.

China’s fundamental approach to AI management is unlikely to change significantly, even as the country faces continued economic turbulence.

A strong regulatory approach may prove an economic challenge in the short term, but will be essential for limiting harm to individuals, maintaining social stability and securing international regulatory leadership in the long-term.

Huw Roberts is a candidate for Doctor of Philosophy at the Oxford Internet Institute, University of Oxford. Emmie Hine is a PhD candidate at the Department of Legal Studies at the University of Bologna.

This article was originally published by East Asia Forum and has been republished under a Creative Commons license.

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