One notable requirement is that operators of generative AI must ensure that their services adhere to the core values of socialism, while also avoiding content that incites subversion of state power, secession, terrorism, or any actions undermining national unity and social stability.

Generative AI services within China are prohibited from promoting content that provokes ethnic hatred and discrimination, violence, obscenity, or false and harmful information. These content-related rules remain consistent with a draft released in April 2023.

Furthermore, the regulations reveal China’s interest in developing digital public goods for generative AI.

The document emphasises the promotion of public training data resource platforms and the collaborative sharing of model-making hardware to enhance utilisation rates. The authorities also aim to encourage the orderly opening of public data classification and the expansion of high-quality public training data resources.

In terms of technology development, the rules stipulate that AI should be developed using secure and proven tools, including chips, software, tools, computing power, and data resources.

Intellectual property rights must be respected when using data for model development, and the consent of individuals must be obtained before incorporating personal information. There is also a focus on improving the quality, authenticity, accuracy, objectivity, and diversity of training data.

To ensure fairness and non-discrimination, developers are required to create algorithms that do not discriminate based on factors such as ethnicity, belief, country, region, gender, age, occupation, or health.

Moreover, operators of generative AI must obtain licenses for their services under most circumstances, adding a layer of regulatory oversight.

The new rules are scheduled to come into effect on August 15, 2023. China’s rules will not only have implications for domestic AI operators but will also serve as a benchmark for international discussions on AI governance and ethical practices.

You can find a full copy of the rules on the Cyberspace Administration of China’s website here.

(Photo by zhang kaiyv on Unsplash)

See also: OpenAI introduces team dedicated to stopping rogue AI

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In an SEC filing, NVIDIA says the US government has informed the chipmaker of a new license requirement that impacts two of its GPUs designed to speed up machine learning tasks: the current A100, and the upcoming H100.

“The license requirement also includes any future NVIDIA integrated circuit achieving both peak performance and chip-to-chip I/O performance equal to or greater than thresholds that are roughly equivalent to the A100, as well as any system that includes those circuits,” adds NVIDIA.

The US government has reportedly told NVIDIA that the new rules are geared at addressing the risk of the affected products being used for military purposes.

“While we are not in a position to outline specific policy changes at this time, we are taking a comprehensive approach to implement additional actions necessary related to technologies, end-uses, and end-users to protect US national security and foreign policy interests,” said a US Department of Commerce spokesperson.

China is a large market for NVIDIA and the new rules could affect around $400 million in quarterly sales.

AMD has also been told the new rules will impact its similar products, including the MI200.

As of writing, NVIDIA’s shares were down 11.45 percent from the market open. AMD’s shares are down 6.81 percent. However, it’s worth noting that it’s been another red day for the wider stock market.

(Photo by Wesley Tingey on Unsplash)

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Last year, the European Commission drafted AI laws. While the US and China are set to dominate AI development with their vast resources, economic might, and light-touch regulation, European rivals – including the UK and EU members – believe they can lead in ethical standards.

In the draft of the EU regulations, companies that are found guilty of AI misuse face a fine of €30 million or six percent of their global turnover (whichever is greater). The risk of such fines has been criticised as driving investments away from Europe.

The EU’s draft AI regulation classifies systems into three risk categories:

• Limited risk – includes systems like chatbots, inventory management, spam filters, and video games.
• High risk – includes systems that make vital decisions like evaluating creditworthiness, recruitment, justice administration, and biometric identification in non-public spaces.
• Unacceptable risk – includes systems that are manipulative or exploitative, create social scoring, or conduct real-time biometric authentication in public spaces for law enforcement.

Unacceptable risk systems will face a blanket ban from deployment in the EU while limited risk will require minimal oversight.

Organisations deploying high-risk AI systems would be required to have things like:

• Human oversight.
• A risk-management system.
• Record keeping and logging.
• Transparency to users.
• Data governance and management.
• Conformity assessment.
• Government registration.

However, the cumbersome nature of the EU – requiring agreement from all member states, each with their own priorities – means that new regulations are often subject to more debate and delay than national lawmaking.

Reuters reports that two key lawmakers on Wednesday said the EU’s AI regulations will likely take over a year more to agree. The delay is primarily due to debates over whether facial recognition should be banned and who should enforce the rules.

“Facial recognition is going to be the biggest ideological discussion between the right and left,” said one lawmaker, Dragos Tudorache, in a Reuters interview.

“I don’t believe in an outright ban. For me, the solution is to put the right rules in place.”

With leading academic institutions and more than 1,300 AI companies employing over 30,000 people, the UK is the biggest destination for AI investment in Europe and the third in the world. Between January and June 2021, global investors poured £13.5 billion into more than 1,400 “deep tech” UK private technology firms—more than Germany, France, and Israel combined.

In September 2021, the UK published its 10-year National Artificial Intelligence Strategy in a bid to secure its European AI leadership. Governance plays a large role in the strategy.

“The UK already punches above its weight internationally and we are ranked third in the world behind the USA and China in the list of top countries for AI,” commented DCMS Minister Chris Philp.

“We’re laying the foundations for the next ten years’ growth with a strategy to help us seize the potential of artificial intelligence and play a leading role in shaping the way the world governs it.”

As part of its strategy, the UK is creating an ‘AI Standards Hub’ to coordinate the country’s engagement in establishing global rules and is working with The Alan Turing Institute to update guidance on AI ethics and safety.

“We are proud of creating a dynamic, collaborative community of diverse researchers and are growing world-leading capabilities in responsible, safe, ethical, and inclusive AI research and innovation,” said Professor Sir Adrian Smith, Chief Executive of The Alan Turing Institute.

Striking a balance between innovation-stifling overregulation and ethics-compromising underregulation is never a simple task. It will be interesting to observe how AI regulations in Europe will differ across the continent and beyond.

(Photo by Christian Lue on Unsplash)

Related: British intelligence agency GCHQ publishes ‘Ethics of AI’ report

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