ChinAI #341: Big Tech v. the Chinese Government in New AI Companion Regs

2022-03-07 · Source: ChinAI Newsletter · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cybersecurity & Data Privacy, AI Policy & Regulation · Depth: Intermediate, quick

Summary

Chinese technology firms have demonstrated significant resistance to government data-sharing mandates, challenging the common perception that they cannot oppose state directives. This is exemplified by Alibaba and Tencent's refusal to provide customer loan data for a national credit scoring scheme, a major roadblock for China's social credit system. Furthermore, the ongoing drafting of China's companion AI regulations reveals a contentious relationship between the government and companies. A draft measure from the Cyberspace Administration of China, released December 27, proposes stringent compliance obligations for human-like interactive AI services, particularly regarding user data consent for model training. This draft, which would require "separate consent" instead of a default opt-out, is expected to face collective concerns from AI companies, as high-quality training data from user interactions is crucial for model optimization. Past AI regulations, such as those for generative AI services, indicate that final versions often undergo significant softening compared to initial drafts, suggesting similar changes for the companion AI rules.

Key takeaway

For CTOs and policy strategists navigating China's regulatory landscape, understand that Chinese tech firms actively resist government mandates, particularly on data sharing and AI training consent. The current draft companion AI regulations, requiring "separate consent" for user data, will likely face strong industry pushback. Anticipate that the final regulations will be significantly softened, similar to previous generative AI rules, allowing for more operational flexibility than initial drafts suggest. Your strategy should account for this dynamic, preparing for evolving compliance requirements.

Key insights

Chinese tech firms actively push back against government data and AI regulatory mandates, shaping policy outcomes.

Principles

• Proprietary data is a strong corporate interest.
• Regulatory drafts often soften in final versions.

Method

Analyzing draft regulations and past policy evolution reveals areas of corporate resistance and likely future changes in China's AI governance.

In practice

• Anticipate significant changes in draft Chinese AI regulations.
• Prioritize explicit user consent for data utilization.

Topics

• China AI Regulation
• Data Privacy
• Corporate Resistance
• Companion AI
• Generative AI

Best for: CTO, Entrepreneur, Policy Maker, AI Product Manager, Business Analyst

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Editorial summary, takeaway, and curation by AIssential. Original article published by ChinAI Newsletter.