CHINA released its official guidelines for generative artificial intelligence services in one of the world’s first major moves to regulate the advanced technology.

The rules led by the Cyberspace Administration of China, the country’s top Internet overseer, will go into effect from Aug 15, according to an official statement on Thursday (Jul 13). Among the 24 provisions are requirements for platform providers to carry out a security review and register their services with the government, as was stipulated in a draft version released in April.

The finalised guidelines stipulate that offshore providers of generative AI tools – if they are aimed at Chinese residents – must also comply with the set of rules. On the other hand, if Chinese-developed tools only serve overseas users, they will not be subject to the guidelines.

“This means more opportunities will be in enterprise-facing applications and people will be more cautious about consumer-facing entrepreneurship,” said Frances Du, founding partner of J Ventures.

The guidelines also remove provisions in the draft version that included fines of as high as 100,000 yuan (US$14,000) for violations, as well as the requirement for platform operators to act within a three-month grace period to rectify problematic content. Its also adds agencies including the National Development and Reform Commission, the country’s education ministry, and science and technology ministry as joint issuers of the regulation, along with articles that encourage China’s developers of AI chips, models, and software to help set international standards and pursue technological exchanges.

The move comes following months of consultation between the government and industry players. China’s major Internet companies, from Alibaba Group Holding and Baidu to JD.com, have jumped into the frenzy to build the country’s equivalent to OpenAI’s ChatGPT. China’s regulation of the nascent sector will offer one model for the orderly development of AI and its distribution as a service for businesses and consumers.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Legal experts had raised concerns after the draft version of the regulations, saying it placed the bulk of responsibility for governing AI content on the platform operators. The fear is that overly onerous regulations could limit the industry’s development, at a time when China is seeking to catch up to and surpass the US in the technology that is at the core of their strategic rivalry.

You Chuanman, director of the IIA Center for Regulation and Global Governance at the Chinese University of Hong Kong’s Shenzhen campus, said the final version of the regulations appeared to allow greater flexibility by removing specifics in the grace period and by adding a greater focus on promoting development.

“A clear-cut deadline of three months could be a daunting challenge,” You said. “In the overall content, there are quite a few additions of clauses to promote development, and there is more emphasis placed on the use of existing legal tools.” BLOOMBERG