robot looking over the shoulder of chinese regulators
robot looking over the shoulder of chinese regulators
robot looking over the shoulder of chinese regulators

China's New AI Rules Could Affect U.S. Companies

China's New AI Rules Could Affect U.S. Companies

China's New AI Rules Could Affect U.S. Companies

Oct 2, 2023

Oct 2, 2023

Oct 2, 2023

Last month the The Cyberspace Administration of China (CAC) put into effect new rules for generative AI tools, which require AI companies to register with the government and pass a security review before they can be released to the public.

The rules also require that all data used for training AI models come from “legitimate sources” and don’t infringe on national IP rights. Companies creating AI tools can also be held responsible for the content that is created on their platforms including content that advocates for terrorism, extremism, ethnic hatred, violence, obscenity, and fake or harmful information.

These rules create exposure for AI companies, as it has proven difficult to prevent generative AI tools (especially chatbots like ChatGPT) from creating content that could violate these rules.

U.S. technology companies are still ahead of China in terms of AI capability, with China’s best models being comparable to OpenAI’s GPT-3 (which is a two year old model, OpenAI has since released GPT-3.5 and GPT-4 to the public). It’s likely that these regulations could make it more difficult for Chinese companies to innovate at a speed that will allow them to catch up the the U.S.

The U.S. still doesn’t have AI regulations, but is actively working on putting together guidelines as top technology leaders like Elon Musk, Mark Zuckerberg, and Sundar Pichai of Google, among others, met in a closed door session with U.S. lawmakers earlier this month to discuss regulation.

One of the most important questions regarding U.S. regulation is how to strike a balance that allows for protection of Americans (and jobs) without hindering AI innovation to the point that the U.S. loses their lead to China or other countries.

Lawmakers will be looking closely at China and the CAC rules as they decide on the best approach for AI regulation in the U.S. The severe regulations in China could prompt the U.S. to also create stricter guidelines for its own AI companies. This would affect new AI startups and especially current tech titans like Google, Meta, Amazon, and Microsoft that are already heavily investing in and developing AI products.

Stronger U.S. regulation could lead to greater protections for Americans, but hinder companies that have been improving AI technologies at a rapid pace. However, this could introduce the risk of falling behind if the Chinese government chooses not to enforce their own regulations on certain national companies that it favors.


Originally featured in The AI China Report #2

Last month the The Cyberspace Administration of China (CAC) put into effect new rules for generative AI tools, which require AI companies to register with the government and pass a security review before they can be released to the public.

The rules also require that all data used for training AI models come from “legitimate sources” and don’t infringe on national IP rights. Companies creating AI tools can also be held responsible for the content that is created on their platforms including content that advocates for terrorism, extremism, ethnic hatred, violence, obscenity, and fake or harmful information.

These rules create exposure for AI companies, as it has proven difficult to prevent generative AI tools (especially chatbots like ChatGPT) from creating content that could violate these rules.

U.S. technology companies are still ahead of China in terms of AI capability, with China’s best models being comparable to OpenAI’s GPT-3 (which is a two year old model, OpenAI has since released GPT-3.5 and GPT-4 to the public). It’s likely that these regulations could make it more difficult for Chinese companies to innovate at a speed that will allow them to catch up the the U.S.

The U.S. still doesn’t have AI regulations, but is actively working on putting together guidelines as top technology leaders like Elon Musk, Mark Zuckerberg, and Sundar Pichai of Google, among others, met in a closed door session with U.S. lawmakers earlier this month to discuss regulation.

One of the most important questions regarding U.S. regulation is how to strike a balance that allows for protection of Americans (and jobs) without hindering AI innovation to the point that the U.S. loses their lead to China or other countries.

Lawmakers will be looking closely at China and the CAC rules as they decide on the best approach for AI regulation in the U.S. The severe regulations in China could prompt the U.S. to also create stricter guidelines for its own AI companies. This would affect new AI startups and especially current tech titans like Google, Meta, Amazon, and Microsoft that are already heavily investing in and developing AI products.

Stronger U.S. regulation could lead to greater protections for Americans, but hinder companies that have been improving AI technologies at a rapid pace. However, this could introduce the risk of falling behind if the Chinese government chooses not to enforce their own regulations on certain national companies that it favors.


Originally featured in The AI China Report #2

Last month the The Cyberspace Administration of China (CAC) put into effect new rules for generative AI tools, which require AI companies to register with the government and pass a security review before they can be released to the public.

The rules also require that all data used for training AI models come from “legitimate sources” and don’t infringe on national IP rights. Companies creating AI tools can also be held responsible for the content that is created on their platforms including content that advocates for terrorism, extremism, ethnic hatred, violence, obscenity, and fake or harmful information.

These rules create exposure for AI companies, as it has proven difficult to prevent generative AI tools (especially chatbots like ChatGPT) from creating content that could violate these rules.

U.S. technology companies are still ahead of China in terms of AI capability, with China’s best models being comparable to OpenAI’s GPT-3 (which is a two year old model, OpenAI has since released GPT-3.5 and GPT-4 to the public). It’s likely that these regulations could make it more difficult for Chinese companies to innovate at a speed that will allow them to catch up the the U.S.

The U.S. still doesn’t have AI regulations, but is actively working on putting together guidelines as top technology leaders like Elon Musk, Mark Zuckerberg, and Sundar Pichai of Google, among others, met in a closed door session with U.S. lawmakers earlier this month to discuss regulation.

One of the most important questions regarding U.S. regulation is how to strike a balance that allows for protection of Americans (and jobs) without hindering AI innovation to the point that the U.S. loses their lead to China or other countries.

Lawmakers will be looking closely at China and the CAC rules as they decide on the best approach for AI regulation in the U.S. The severe regulations in China could prompt the U.S. to also create stricter guidelines for its own AI companies. This would affect new AI startups and especially current tech titans like Google, Meta, Amazon, and Microsoft that are already heavily investing in and developing AI products.

Stronger U.S. regulation could lead to greater protections for Americans, but hinder companies that have been improving AI technologies at a rapid pace. However, this could introduce the risk of falling behind if the Chinese government chooses not to enforce their own regulations on certain national companies that it favors.


Originally featured in The AI China Report #2

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