China’s ‘pro-innovation’ AI regulations augur well for eventual public release of Ernie Bot and other local ChatGPT alternatives, Baidu CEO says

“We are still awaiting the green light for the large-scale roll-out of Ernie Bot in consumer-facing apps,” Li said. “While we don’t have an exact date for everything … we’re quite optimistic about the future of a better regulatory environment.”

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Baidu’s optimism reflects the supportive tone of the new regulations, which were drawn up by seven Chinese agencies led by the Cyberspace Administration of China (CAC), as authorities pledged “to take effective measures to encourage innovative development of generative AI”.

Generative AI refers to algorithms – such as those behind OpenAI’s ChatGPT, Google’s Bard, Ernie Bot and iFlytek’s Spark – that can be used to create new content, including audio, code, images, text, simulations and videos.

“Generative AI is pretty new, and it’s understandable that people might have concerns about things like user privacy, IP [intellectual property] protection and AI ethics,” Baidu’s Li said. “So there should be certain regulatory requirements in place.”

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Internet regulator CAC has yet to issue a licence for any generative AI product in the country, even as Big Tech firms like Baidu, Alibaba Group Holding and iFlytek have rolled out ChatGPT-like services on a trial basis. Alibaba owns the South China Morning Post.

Ernie Bot users, however, are required to obtain an additional permit to use any of the app’s functions after downloading it, as Beijing has not allowed any generative AI service to be made available to the general public.

All generative AI algorithms and products must go through security testing and review by the CAC before these can be made available to the public. US start-up OpenAI’s ChatGPT and Google’s Bard are not available in China’s closed market.

Baidu’s application icons are displayed on a smartphone in Beijing on August 22, 2023. Photo: Bloomberg

The CAC in June published a list of 41 generative AI algorithms that have been “registered” with the agency, part of a pre-screening process before a licence is granted.

While there is currently no timeline for the public roll-out of local generative AI services in mainland China, Baidu’s Li said the country’s AI trend was “very promising”.

“The government has increasingly recognised Ernie Bot, which we believe provides a good foundation for its eventual release on a large scale,” he said. “We are working closely with the regulators and other organisations to push the development and the proper usage of generative AI.”

In his prepared remarks during the conference call on Tuesday, Li said Baidu has already integrated Ernie Bot its various products to “improve, rebuild and create new offerings”.

That included enabling the firm’s Baidu Search app to provide users with more personalised and in-depth research on a topic or project.

South China Morning Post