China is leading in the world regarding the regulation of AI. On 10 July 2023 the Chinese government announced that the Interim Measures for the Management of Generative Artificial Intelligence Services (AI Measures) has been reviewed and approved.
The AI Measures will come into force on 15 August 2023 and state that they aim to promote the healthy development and standardized application of generative artificial intelligence, safeguard national security and social public interests, and protect the legitimate rights and interests of citizens, legal persons, and other organizations.
The scope of the Measures
The AI Measures apply to the use of generative artificial intelligence technology to provide services for generating text, pictures, audio, video, and other content to the public within the territory of the People's Republic of China (hereinafter referred to as generative artificial intelligence services or AI).
AI with Chinese socialist characteristics
The AI Measures make it clear that AI in China must absolutely be in line with Chinese socialism. They state that generative artificial intelligence services must adhere to the core values of socialism, and must not generate incitement to subvert state power, overthrow the socialist system, endanger national security and interests, damage national image, incite secession, undermine national unity and social stability, promote terrorism, extremism, promote content prohibited by laws and administrative regulations such as ethnic hatred, ethnic discrimination, violence, obscenity, and false harmful information.
Furthermore, they state that in the process of algorithm design, training data selection, model generation and optimization, and service provision, AI must take effective measures to prevent discrimination based on ethnicity, belief, country, region, gender, age, occupation, health, etc.
Respect IP, trade secrets and personal data
The AI Measures state that AI must respect intellectual property rights, business ethics, keep business secrets, and not use algorithms, data, platforms, and other advantages to implement monopoly and unfair competition;
Legitimate rights and interests of others must be respected by AI, and AI must not endanger the physical and mental health of others, and must not infringe on the portrait rights, reputation rights, privacy rights, and personal information rights of others.
Duties for service providers regarding IP, data and authenticity
Generative artificial intelligence service providers (hereinafter referred to as providers) shall in accordance with the AI Measures, law and regulations, carry out training data processing activities such as pre-training and optimization training in accordance with the law, and abide by the following provisions:
(1) Use data and basic models with legitimate sources;
(2) Where intellectual property rights are involved, the intellectual property rights enjoyed by others shall not be infringed;
(3) Where personal information is involved, the consent of the individual shall be obtained or other circumstances that comply with laws and administrative regulations;
(4) Take effective measures to improve the quality of training data, and enhance the authenticity, accuracy, objectivity, and diversity of training data.
Furthermore, Providers shall legally assume the responsibility of network information content producers and fulfil network information security obligations. Providers should sign service agreements with generative artificial intelligence service users (hereinafter referred to as users) who register their services, clarifying the rights and obligations of both parties.
Finally, Providers shall mark pictures, videos, and other generated content in accordance with the 'Regulations on the Administration of Deep Synthesis of Internet Information Services'.
Reporting by users
In line with Chinese history, article 18 of the AI Measures writes out the reporting right of users in case they find that generative artificial intelligence services do not comply with laws, administrative regulations and the provisions of these measures. In such cases, the users have the right to complain and report to the relevant competent authorities.
Blocking of foreign AI
The AI Measures mention that when the provision of generative artificial intelligence services originating from outside the territory of the People's Republic of China does not comply with laws, administrative regulations, and the provisions of the Measures, the Chinese government shall notify relevant institutions to take technical measures and other necessary measures to deal with them.
What happens if the AI Measures are violated?
Where a provider violates the provisions of the AI Measures, the relevant competent authority shall, if there is no provision in the law or administrative regulations, give a warning, circulate a notice of criticism according to its duties, and order corrections within a time limit.
If it refuses to make corrections or the circumstances are serious, it shall be ordered to suspend the provision of related services.
If it constitutes a violation of public security management, it shall be punished according to law, and if it constitutes a crime, it shall be investigated for criminal responsibility according to law.
Future of AI in China?
For now, it is interesting to see that China is on the forefront having addressed AI by Measures in a time where other countries seem to be struggling with the question on how legally to deal with AI.
The frequent mentioning of IP rights and the fact that AI should respect IP and trade secrets, is very encouraging and positive. The Measures will be in force on 15 August 2023. We will monitor how the Measures are applied, and report on any interesting cases.
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