AI explained: AI regulations and PRC court decisions in China

Reed Smith lawyers Cheryl Yu (Hong Kong) and Barbara Li (Beijing) explore the latest developments in AI regulation and litigation in China. They discuss key compliance requirements and challenges for AI service providers and users, as well as the emerging case law on copyright protection and liability of AI-generated content. They also share tips and insights on how to navigate the complex and evolving AI legal landscape in China. Tune in to learn more about China’s distinct approach to issues involving AI, data and the law.  ----more---- Transcript:  Intro: Hello and welcome to Tech Law Talks, a podcast brought to you by Reed Smith's Emerging Technologies Group. In each episode of this podcast, we will discuss cutting-edge issues on technology, data, and the law. We will provide practical observations on a wide variety of technology and data topics to give you quick and actionable tips to address the issues you are dealing with every day. Cheryl: Welcome to our Tech Law Talks and new series on artificial intelligence. Over the months, we have been exploring the key challenges and opportunities within the rapidly involving AI landscape. Today, we will focus on AI regulations in China and the relevant PRC court decisions. My name is Cheryl Yu, a partner in the Hong Kong office at Reed Smith, and I'm speaking today with Barbara Li, who is a partner based in our Beijing office. Barbara and I are going to focus on the major legal regulations on AI in China and also some court decisions relating to AI tours to see how China's legal landscape is evolving to keep up with the technological advancements. Barbara, can you first give us an overview about China's AI regulatory developments? Barbara: Sure. Thank you, Cheryl. Very happy to do that. In the past few years, the regulatory landscape governing AI in China has been evolving at a very fast pace. Although China does not have a comprehensive AI as a EU AI act, China has been leading the way in rolling out multiple AI regulations governing generative AI, debate technologies, and algorithms. In July 2023, China issued the Generative AI Measures, which becomes one of the first countries in the world to regulate generative AI technologies. These measures apply to generative AI services offered to the public in China, regardless of whether the service provider is based in China or outside China. And international investors are allowed to set up local entities in China to develop and offer AI services in China. In relation to the legal obligation, the measures lay down a wide range of legal requirements in performing and using generative AI services. Including content screening, protection of personal data and privacy, and safeguarding IPR and trade secrets, and also taking effective measures to prevent discrimination, when the company's design algorithm chooses a training data or creates a large language model. Cheryl: Many thanks, Barbara. These are the very important compliance obligations that business should not neglect when engaging in development of AI technologies, products, and services. I understand that one of the biggest concerns in AI is how to avoid hallucination and misinformation. I wonder if China has adopted any regulations to address these issues? Barbara: Oh, yes, definitely, Cheryl. China has adopted multiple regulations and guidelines to address these concerns. For example, the Deep Synthesis Rule, which became effective from January 2023, and this regulation aims to have a governance over the use of deep-fake technologies in generating or changing digital content. And when we talk about digital content, the regulation refers to a wide range of digital media, including video, voices, text, and images. And the deep synthesis service providers, they must refrain from using deep synthesis of services to produce or disseminate illegal information. And also, the companies are required to establish and improve proper compliance or risk management systems. S