China has proposed new regulations on artificial intelligence chatbots, specifically targeting the rollout of generative AI models like ChatGPT. The country’s Internet regulator released draft measures that would require providers to undergo security reviews before releasing their products and to register them in a database. The regulator also stated that platforms must verify users’ identities and ensure that content generated by AI adheres to core socialist values. Chinese tech giants Alibaba, SenseTime, and Baidu have all recently launched their own ChatGPT-like bots, but Alibaba’s rollout may be slowed down by the new regulations. This move by China reflects the government’s desire to control and regulate the development and deployment of AI technologies in the country.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| China proposes new checks on AI chatbots | Regulation of AI chatbots | AI chatbots subject to security reviews and content restrictions | Control over technology and potential social mobilization |
| Alibaba launches ChatGPT-like bot | Emulation of US start-up | Integration of AI bot in workplace collaboration tools and smart speakers | Technological advancement and competition with US companies |
| China’s Internet regulator releases draft measures | Restrictions on chatbot rollout | Slowdown of Alibaba’s rollout and verification of users’ identities | Concerns about social mobilization and national unity |
| Generative AI should embody core socialist values | Ideological control over AI content | AI content must align with socialist values and not subvert state power | Promotion of socialist ideology and control over information |
| Alibaba CEO sees generative AI as a technological watershed moment | Recognition of generative AI’s impact | Emphasis on seizing future opportunities and shared vision | Technological advancement and future opportunities |
| SenseTime unveils its SenseChat bot | Introduction of AI chatbot | Ability to write emails and tell stories demonstrated | Advancement of AI technology and innovation |
| Baidu unveils its chatbot Ernie | Introduction of AI chatbot | Mixed reviews regarding vivid pictures and basic logic | Advancement of AI technology and competition with OpenAI’s GPT-4 |
| Alibaba’s restructuring aims to reset company’s fortunes | Radical restructuring of Alibaba | Splitting into six entities for increased nimbleness | Improvement of company’s performance and adaptability |
| Chinese user tests show chatbots generating false information | Prohibition of chatbots generating false information | New rules to prevent chatbots from generating false facts | Concerns about misinformation and accuracy |
| Generative AI announcements boost Chinese tech stocks | Increase in stock prices of AI companies | Rise in Baidu, SenseTime, and Alibaba’s stock prices | Speculative frenzy and interest in AI technology |