China issues interim measures to boost AI industry

China has issued interim measures to manage its generative artificial intelligence (AI) industry, saying they would apply only to services offered to the public as regulators seek to support development of the technology.
Generative AI market revenue forecast
The above chart from S&P Global Market Intelligence shows the growth in generative AI industry worldwide.

China’s measures for artificial intelligence (AI) industry reflect the country’s intention to support and promote the development of this technology while establishing regulatory frameworks. These measures, which will come into effect on August 15, focus on services offered to the public and provide clarification on the scope of regulatory oversight.

China has recognized AI as a crucial sector where it aims to compete with the United States and become a global leader by 2030. The country has already witnessed substantial investment in its generative AI industry, with numerous AI models being launched by Chinese firms. However, until now, companies were cautious about rolling out chatbots and similar AI services to the public, awaiting finalized rules and regulatory approval from Beijing.

The latest IDC report in July 2022 said worldwide artificial intelligence (AI) market, including software, hardware, and services, will post a compound annual growth rate (CAGR) of 18.6 percent in the 2022-2026 period to reach the $900 billion mark in 2026.

IDC also said Asia Pacific spending on AI systems will rise from $17.6 billion in 2022 to around $32 billion in 2025. IDC forecasts a compound annual growth rate (CAGR) of 25.2 percent for the period 2020-2025.

The Cyberspace Administration of China (CAC), the regulatory authority in this domain, has emphasized the need for content generated by generative AI to align with China’s core socialist values. Intellectual property rights protection and the use of legitimate data sources are also highlighted. These measures demonstrate China’s commitment to ensuring the safety of AI technologies while also safeguarding copyright and fostering an environment conducive to innovation.

It is worth noting that the interim measures will not apply to individuals or entities involved in generative AI technology development who do not plan to offer services to the Chinese public. This indicates China’s intention to encourage technological advancements and research in AI beyond public-facing applications.

China’s proactive approach in formulating regulations for generative AI sets it ahead of many other countries grappling with similar challenges. By addressing safety concerns and copyright protections while nurturing innovation, China aims to create an ecosystem that supports the growth and competitiveness of its AI industry.

Furthermore, the involvement of Chinese tech giants like Alibaba Group, Baidu, and in developing their own AI chatbots underscores the significance of generative AI in the country. With launching its enterprise-focused large language model called ChatRhino, competition in this field is expected to intensify, leading to further advancements and innovations in the Chinese AI market.

Overall, China’s issuance of interim measures for managing its generative AI industry demonstrates the government’s commitment to supporting AI development, fostering innovation, and establishing regulatory frameworks that align with its national goals.

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