China Cracks Down on Emotional AI, Foretelling Changes for Human-like AI Services

China's Cyberspace Administration (CAC), along with four other ministries, has jointly announced the 'Provisional Measures for the Administration of Artificial Intelligence Humanoid Interaction Services,' which will officially come into effect on July 15. These regulations are designed to prevent the societal and political risks associated with AI services that form deep emotional relationships with users, such as virtual partners and character AIs. The relevant industry is bracing for an inevitable reorganization of its business models.

AI services that encourage user self-harm, foster blind dependence, or induce addiction, thereby damaging real-life human relationships, are strictly prohibited. Providing services mimicking intimate relationships, such as virtual kin or partners, to minors under 18 is banned. For children under 14, parental or guardian consent must be obtained before providing humanoid interaction services. A 'minor mode' must be mandatorily equipped for services targeting minors.

If a user converses with an AI continuously for over two hours, the service provider must issue a warning notification. AI companies are obligated to promptly identify and respond to users' psychological and safety risks. If a user shows signs of self-harm or suicide, or faces the risk of significant financial loss, companies must intervene by contacting guardians or emergency contacts.

Sensitive personal data, including interaction content, cannot be reused for AI model training without user consent. Services exceeding 1 million subscribers or 100,000 monthly active users (MAU) must submit a security assessment report to the competent department. AI used solely for simple combat assistance may be excluded from regulation, while smart NPCs in RPG formats providing real-time text generation and continuous emotional interaction could be included under management.

Global game companies looking to enter the Chinese market will face increased pressure regarding prompt and algorithm modifications. Authorities have expressed concerns about the political risks of AI injecting anti-regime ideologies and the deepening demographic cliff due to younger generations avoiding real-world relationships. Entertainment-focused virtual character AIs are bound to shrink, and the industry may shift its business models towards public interest areas such as elderly care or child education.