China has officially introduced a new set of regulations governing the use of generative artificial intelligence (AI) technology in providing services to the public.
The Interim Measures for Administration of Generative Artificial Intelligence Services ("Interim Measures") were released by the Cyberspace Administration of China ("CAC") after months of deliberation and revision, taking effect on 15 August 2023. The Interim Measures apply to the provision of generative AI services to the public in China, which utilize generative AI technology to generate content such as text, pictures, audio, and video.
The regulations do not apply to research, development, and application of generative AI technology that does not involve service provision to the Chinese public.
Application to Domestic and Foreign Providers
The regulations also extend to foreign AI service providers offering services to the Chinese public. Such providers must adhere to Chinese laws and regulations, including the Interim Measures. In cases of non-compliance, the CAC may notify relevant organizations to take measures to address the non-compliance, which could include blocking access to services or sanctioning the providers.
The use of generative AI technology in news publication, film and TV production, cultural creation, etc., may fall under industry-specific regulations. Foreign investment in generative AI services should comply with the PRC foreign investment laws and regulations.
Obligations for Provision and Use of Generative AI Services
Providers and users of generative AI services must uphold socialism core values, avoid fake and harmful information, and respect third-party IP rights, trade secrets, privacy, and other personal rights. They must not engage in monopoly or unfair competition activities. Providers must prevent discrimination in algorithm design, training data selection, model creation, and service provision. They must also improve service transparency and content accuracy, and reliability.
Specific Obligations for Providers
Providers should:
Conduct data training legally, ensuring data sources are legal, free from IP infringement, and have individual consent.
Properly annotate data, establish annotation rules, conduct quality assessments, and provide training for annotators.
Assume responsibility as internet information content producers and personal data processors, signing contracts outlining rights and obligations with users.
Guide users to use AI services legally and take measures against minors' overreliance or addiction.
Protect user input information and use records, and avoid illegal storage or provision to others.
Label AI-generated content per the PRC Administrative Provisions on Deep Synthesis of Internet-based Information Services.
Provide safe, stable, and continuous services.
Address illegal content or use, take measures to cease generation or transmission, remove content, and report incidents to authorities.
Establish complaint mechanisms.
Conduct security assessments and algorithm filings for AI services capable of influencing public opinion or causing social mobilization.
Liabilities for Violations
Violations will be punished according to relevant laws, including the PRC Cyber Security Law, the PRC Data Security Law, and the PRC Personal Information Protection Law. Violators may receive warnings, be ordered to make rectifications, or face service suspension in severe cases.
Conclusion and Looking Ahead
Although the Interim Measures are broad and pending further clarification, they indicate the direction of generative AI service regulation in China. With more comprehensive legislation on the horizon, AI businesses should review their operations and strengthen compliance efforts.
If you have any questions or need assistance navigating these new regulations in China or elsewhere, don't hesitate to contact us at Prokopiev Law Group. With our extensive global network of partners, we're well-equipped to ensure your compliance worldwide. As the AI sector evolves, our experienced team will help you stay ahead of the curve, ensuring your operations meet all legal requirements. Get in touch with us today, and let us help you thrive in the ever-changing world of AI.
The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.
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