What is China’s AI Algorithm Filing?
China’s AI Algorithm Filing is a regulatory framework introduced by the Cyberspace Administration of China (CAC) that allows companies to develop and use AI algorithms in China. Implemented in 2021, it aims to increase transparency in the use of AI technology in the Chinese market whilst preventing misuse. This framework applies to any company in any industry that wishes to implement the use of AI algorithms. Companies that intend to use AI algorithms are now required to file:
- Individually as an entity that uses AI algorithms
- Any products within the company that use AI algorithms
Why do you need an AI Algorithm Filing?
AI Algorithm Filings are the legitimate and legal route established by the Cyberspace Administration of China (CAC) that allows companies to use and develop AI algorithms. Failure to comply with these regulations may result in the suspension of business altogether, along with a fine of up to CNY 100,000.
Acquiring filing does not directly protect your algorithm, to do so an additional Software Copyright Certificate (SCC) would be required.
Who needs it?
Both Chinese-owned companies and Wholly Foreign-Owned Entities (WFOEs) that develop any form of Generative AI need to acquire this filing. Generative AI here refers to AI that generates any form of content or produces an output. WFOEs can apply for this filing, but it is challenging to obtain, and no WFOE has successfully secured one to date.
If a company uses a third-party AI solution provider, said third-party will also have to acquire filing. Alternatively, domestic AI solution providers can replace existing providers.
How to get China’s AI Algorithm Filing?
Companies must file both as an entity and for individual products. To file as an entity, a company must:
- Register and create an account with the national algorithm filing system: https://beian.cac.gov.cn/#/signUp
- Once the account has been successfully created, provide documents including:
- Chinese Business license (营业执照副本)
- Legal Representative (法人)
- Company Representative responsible for AI (算法安全负责人)
- Contact of person responsible for registering (备案联系人)
In cases that involve online content, companies will be required to provide information and documentation regarding the website the content is being hosted on. That includes, but is not limited to:
- The AI algorithm’s’ self-assessment system (算法安全自评估制度建设)
- The AI algorithm’s systems for handling violations (算法安全监测制度建设)
- The AI algorithm’s emergency response systems (算法安全事件应急处理制度建设)
Companies are also required to provide an introduction of the product itself and an overview of the algorithm’s function(s). Should a login be required, access should be granted.
How long does it take?
The entire filing process can take a total of 40 working days, with the reviewing process taking up to 30 working days. Once the application is reviewed and approved, a filing number (网信算备号) will be provided. The algorithm can then be used, and should always be used, in accordance with up-to-date guidelines.
What does it cost?
While there are no submission fees, it is recommended that an agency is used to ensure that all documentation is provided and accounted for.
How can AppInChina help?
If your company has a Chinese entity, then we can assist you in obtaining this filing. If you do not meet this requirement, we can apply for and secure the filing on your behalf.
Sources:
https://www.gov.cn/zhengce/zhengceku/2022-01/04/content_5666429.htm
https://www.cac.gov.cn/2023-07/13/c_1690898327029107.htm
https://www.cac.gov.cn/2022-08/12/c_1661927474338504.htm