China Tightens Oversight of Human-Like AI

China has released draft rules focused on AI systems that act or respond like people. The move shows how the country aims to expand AI while maintaining firm oversight. At the same time, officials remain focused on safety, order, and clearly defined limits.

Under the proposal, users must be told they are speaking with AI when they log in. In addition, platforms must repeat that notice every two hours during use. They must also step in when signs of user reliance appear.

Providers are also required to build security and ethics checks into these systems. AI behavior must align with China’s stated social values. Content that risks national safety or public order would not be allowed.

What It Means for AI Companies and Investors

Before launching human-like AI tools, firms must file reports with regulators. They must also submit updates once a service reaches one million users.

As a result, larger firms are better positioned to meet these demands. Companies like Baidu (BIDU), Alibaba Group (BABA), and Tencent (TCEHY) already operate under close oversight and can manage added reviews and filings. Smaller AI firms may face higher costs and slower product launches.

Meanwhile, China continues to invest heavily in AI as a growth driver. However, the rules show that consumer-facing AI will face closer checks. For investors, this points to steady support for leading AI companies alongside tighter limits on how human-like AI systems can become. Overall, China is promoting AI growth while setting firm guardrails, a balance that is likely to shape how AI products develop in its market going forward.

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