China: Will AI companies still be subject to licensing requirements?

China: Will AI companies still be subject to licensing requirements?

Beijing, July 12, 2023

According to the Financial Times, China’s internet regulator plans to introduce a licensing requirement for AI companies before they can release generative AI models. The aim is to find a balance between promoting AI and technological advances and maintaining control over content.

According to FT, China’s government wants to regulate generative AI before it becomes widespread.

Companies like Baidu and Alibaba have already worked with regulators to ensure compliance with regulations proposed back in April.

The draft rule states that AI content should be consistent with „fundamental socialist values“ and avoid undermining state power or national unity.

The stringent requirements could pose challenges for companies developing and improving large language models, and potentially lead to caution in the industry. The final version of the rules is expected to be published later this month.