By Gabby Chen

(JW Insights) Apr 19 -- The Cyberspace Administration of China (CAC) released a draft document for managing generative artificial intelligence (AI) services because of the rising concerns over the potential risks of the technology, reported Yicai Global. The document was released on April 11 and will be open for public comment until May 10.

The move comes as Chinese companies, including tech giants Baidu, Alibaba, and Tencent, have rushed to introduce their own versions of generative AI technology after the success of OpenAI's ChatGPT model late last year.

Under the proposed regulations, providers of generative AI technology should apply for security assessments and file with authorities before providing their services to the public. The content generated by AI technology should be true and comply with national laws, regulations, and social ethics.

The measures put forward requirements about the admission of AIGC (AI-generated content) service providers, algorithm designs, training data selection, content models, and users' real names, personal privacy, and business secrets.

Wu Shenkuo, a law professor at Beijing Normal University, noted that the draft has three areas for supervising AIGC in China. The first is to utilize the systems and mechanisms provided by laws and regulations. The second is to emphasize the basics of prevention, response, and management of risk, and the third is to highlight the ecological and procedural regulatory approach, especially in the multi-level supervision of the entire lifecycle of tech application, Wu added.

According to Gao Fuping, director of the Data Law Research Center at East China University of Political Science and Law, the regulations to control AI-generated content models may be impossible at the moment due to the intelligent and random delivery process involved.

Gao told Yicai Global that language models touch on the interests of the individual and the general public, so establishing control over AIGC models before they reach users will be a difficult task and the focus of China's latest regulations.

China will continue to support independent innovation and international cooperation on AI algorithms and basic framework technologies, the draft showed, and will encourage firms to prioritize using safe and reliable software, tools, computing, and data resources, said the Yicai Global report.

Generative AI technology is becoming increasingly popular in several industries in China as companies aim to enhance their products and services, according to a China Daily report on April 4.

Home appliances giants such as Midea Group, Hisense, and Sichuan Changhong Electric, as well as automakers like Jidu Auto, Changan, and Geely, have announced their plans to incorporate Baidu's ChatGBT-like AI chatbot Ernie Bot system.

Similarly, AIBANK, a Beijing-based virtual bank, utilized generative AI and digital human technologies to create a three-dimensional digital banking outlet to increase user activity and acquire new customers, reported China Daily on April 12.

Li Rudong, president of AIBANK, said that AI development is currently reaching the singularity, and AI-generated content technology is making breakthroughs that profoundly affect all industries.

"Today, with the support of AIGC, we are launching a digital banking outlet in the hope of creating a brand new interactive experience in a 3D digital space, making financial apps more engaging, and hoping to provide users with an immersive sense of pleasure during financial transactions," Li said.