AI based robot in China

Chinese regulators plot tighter controls for AI services amid rising interest

Artificial Intelligence (AI) is taking the world by storm, leaving governments stumped on the most ideal path to take in regulating the technology. Despite the complexities, Chinese authorities have unveiled draft regulations in a valiant attempt to control AI services in the country.

The Cyberspace Administration of China (CAC) released draft regulations titled “Administrative Measures for Generative Artificial Intelligence Services” on April 11 to become one of the first countries with a semblance of control. The CAC added that the public can submit feedback on the rules until May 10 before the regulations take effect.

Under the guidelines, AI service providers are saddled with the responsibility of ensuring that content generated through the platform is accurate and in line with intellectual property (IP) laws. The CAC warns service providers to ensure that algorithm design prevents discrimination based on race, gender, belief, age, and occupation.

Furthermore, the CAC proposes a security assessment before an AI service is pushed to the public to ensure it complies with existing security rules. AI service providers are expected to ensure that their platforms prevent damage to users’ physical and mental health while protecting privacy rights.

“The content generated by generative artificial intelligence should reflect the core values of socialism and must not contain subversion of state power, the overthrow of the socialist system, incitement to split the country, undermine national unity, and promote terrorism,” said the CAC.

The CAC’s proposed rules come after Baidu released its ERNIE Bot to rival OpenAI’s ChatGPT in the Chinese market. The deep learning model, launched in March, shows versatility in dialogue, content creation, and reasoning with knowledge.

Other Chinese tech giants like Alibaba (NASDAQ: BABAF) and SenseTime (NASDAQ: SNTMF) are scrambling to develop their AI platforms to rival the offerings of global competitors. Ahead of several full-scale launches, the CAC is preparing a uniform framework and minimum operating standards for AI products in Chinese markets.

Wreaking havoc in digital assets

AI-based digital currency platforms have scammed investors of over $1 million by riding on the popularity of ChatGPT-4. Onchain security firm CertiK disclosed that Harvest Keeper had siphoned $933,000 worth of digital assets in a rug pull and an additional $219,000 via ice phishing.

To stem the tide, U.S. regulators are banding together to warn investors against sinking funds in shady AI projects. Both the Texas State Securities Board and the Alabama Securities Commission revealed that a smart contract audit of one AI-themed platform showed that the deploying team could halt users from withdrawing their assets.

In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.

Watch: New Technologies, New Futures for Nations

YouTube video

New to blockchain? Check out CoinGeek’s Blockchain for Beginners section, the ultimate resource guide to learn more about blockchain technology.