"Interim Measures for the Management of Generative Artificial Intelligence Services" Officially Implemented, Commercialization of Generative AI is coming

With the rapid development of China’s generative artificial intelligence, relevant regulatory policies are gradually being implemented. The " Interim Measures for the Management of Generative Artificial Intelligence Services" (referred to as the "Measures"), jointly released by the Cyberspace Administration of China and other 7 departments, officially came into effect on August 15. This is also China's first regulatory policy specifically targeting the generative artificial intelligence industry.

"Facing to the new technologies, the establishment of regulations is not only to standardize their development but also to guide and encourage innovation in a positive manner." Wang Peng, a researcher at the Beijing Academy of Social Sciences and the Research Center for Intelligent Social Governance at Renmin University of China, mentioned that while the "Measures" clarify industry standards, and also further foster the implementation of generative artificial intelligence applications.

Implementation of supervision, inspection, and legal responsibilities
The emergence of phenomena like ChatGPT has sparked a wave of enthusiasm for the generative artificial intelligence industry both locally and internationally. However, the development of the generative AI industry has also brought a series of issues. Therefore, the introduction of the "Measures" clarifies the activities that generative artificial intelligence service providers should conduct in accordance with the law, the regulations they should adhere to, as well as specific service standards, thereby implementing supervision, inspection, and legal responsibilities.

Lawyer Ding Xueming from Shanghai Landing Law Office stated that generative artificial intelligence technology involves various legal risks, such as data compliance, algorithmic discrimination, intellectual property rights, and content violations. The "Measures" define the scope of applicability of generative artificial intelligence, specify compliance requirements, internal regulations, and external supervision. They propose assessment and record-filing for AI services to promote the healthy development of the generative artificial intelligence industry.

Ding Xueming analyzed that further legal regulations are needed for the development of the generative artificial intelligence industry. Considering the differences in operation of generative AI technology in different industries and scenarios, there is a need for specific legal regulations tailored to different industries and scenarios. Additionally, the relevant competent authorities need to establish classification and hierarchical regulatory rules or guidelines for generative artificial intelligence services.

Lawyer Lu Jianxuan from Shanghai Integrity Law Firm mentioned that the "Measures" implement regulatory responsibilities in different situations. For instance, Article 20 stipulates that "If a provider of generative artificial intelligence services from outside the territory of the People's Republic of China fails to comply with laws, administrative regulations, and provisions of these Measures when providing services within the territory, the Cyberspace Administration of China shall notify the relevant organizations to take technical measures and other necessary measures for disposal."

Lu Jianxuan stated that if products provided by overseas generative AI service providers involve intellectual property infringement or personal information leakage, which may affect national security and public safety, timely and effective regulatory intervention is required. For such overseas service providers, it is necessary to fully consider the "unknowability" and cross-border nature of generative artificial intelligence services and their risk characteristics to implement targeted control and effectively address the legal evasion behavior of overseas service providers.

Positive developments for the enterprise market
While implementing specific regulations, the "Measures" also encourage further innovative applications of generative artificial intelligence technology in various industries and fields. They support collaboration among organizations in generative AI technology innovation, data resource development, transformational applications, risk prevention, and promote the construction of generative artificial intelligence infrastructure and public training data resource platforms.

Chen Xiaohua, Chief Digital Economy Expert at the National Engineering Laboratory for Modeling and Emulation in E-Government, analyzed that promoting the construction of public training data resource platforms will help strengthen data security governance, regulate data open sharing, and facilitate the formation of large-scale public training data. This will enhance the technological level of the entire industry and make supervision more targeted. By continuously improving regulations and technical standards and creating a fair competition market environment, the "Measures" will guide the industry in forming consensus and self-discipline.

Zhou Hongyi, founder of 360 Group, said, "The real future development opportunity for generative artificial intelligence lies in the enterprise market. In the context of industrial digitalization strategy, generative AI large models, as productivity tools comparable to the industrial revolution, should help traditional industries, especially manufacturing, achieve digital transformation and upgrade to intelligentization. From the perspective of the 'Measures,' the strong support from the country for R&D and implementation of generative AI large models in enterprise-level scenarios is of positive significance."

Furthermore, the "Measures" optimize regulatory details, support the further development of enterprise-level generative artificial intelligence technology, and also encourage its application in different industries and fields. They aim to build an application ecosystem and accelerate the development of the generative artificial intelligence application ecology.

Wang Peng stated that with the gradual improvement of the regulatory system, the commercialization of generative AI services is coming. The " Interim Measures for the Management of Generative Artificial Intelligence Services" provide a framework for the industry to operate within legal boundaries and promote healthy development. However, it is important to note that the implementation of regulations and the commercialization of generative AI will continue to evolve as the industry matures and new challenges emerge.

Disclaimer: This article is published by Securities Daily (证券日报) and has been translated into English. If there is any inconsistency or ambiguity between the English version and Chinese version, the latter one shall prevail. The full text of the article, in Chinese, can be found below:
http://www.news.cn/2023-08/16/c_1212256586.htm