China unveils new rules on generative AI, aims to direct its efforts towards enterprise applications
China has recently established regulations that specifically govern generative AI services such as ChatGPT.

Highlights
- Chinese regulators finalise regulations for generative AI
- The rules promote generative AI innovation and infrastructure growth
- Alibaba introduced an AI tool called Tongyi Wanxiang
The Chinese regulators have recently finalised novel regulations related to generative artificial intelligence (AI). These rules aim to enhance the supervision of this rapidly expanding technology.
The Cyberspace Administration of China (CAC), in collaboration with other regulatory bodies, has developed these regulations, which are set to be implemented on 15 August 2023. These rules are the first of their kind and provide a framework for managing and overseeing the use of such AI services within the country.
China to introduce AI services
The creation of generative AI services, including ChatGPT, has resulted in numerous competitors entering the market. Chinese tech giants have also joined the trend, announcing their intentions and introducing their own generative AI services.
However, Chinese regulators are particularly cautious of the possibility that these services could generate content that challenges Beijing's perspectives. As a result, they are paying close attention to the potential consequences of such technology within the Chinese context.
Chinese tech companies have exercised caution in launching ChatGPT-like services, largely due to concerns surrounding potential content risks. Instead of offering comprehensive services to the general public, these companies have primarily directed their efforts towards enterprise applications.
For instance, Alibaba recently introduced an AI tool called ‘Tongyi Wanxiang,’ which can generate images based on prompts. However, this tool is currently only available to enterprise customers for beta testing, indicating a more controlled approach.
Nevertheless, the regulations established by the CAC provide technology giants with a framework to navigate the landscape of generative AI technology. These rules offer guidance and guidelines for companies operating in this field, enabling them to comply with regulatory requirements and incorporate responsible practises.
What are the generative AI rules?
China's generative AI rules focus on regulating public-facing generative AI services rather than those developed in research institutions or for internal use. Here are some key points about the rules:
Licensing requirement: Generative AI service providers will be required to obtain a license to operate in China. The specifics of the licensing process and requirements have not been detailed.
Content regulation: Service providers are responsible for ensuring that their generative AI systems do not generate illegal content. If illegal content is identified, providers must take measures to prevent its generation, improve the underlying algorithm, and report the material to the relevant authority. The definition of 'illegal' content is not explicitly defined in the information available.
User data protection: Providers of generative AI services are required to conduct security assessments on their products to ensure the safety and integrity of user information.
The regulations aim to strike a balance between promoting China's leadership in artificial intelligence and maintaining a faithful approach to its development. Additionally, these rules seek to encourage innovative applications of generative AI and support the growth of related infrastructure.