What is AI compliance? Use AI tools while protecting privacy and data security.

AI compliance means using AI tools in accordance with relevant laws and regulations while protecting user privacy and enterprise data security. In short, it's knowing what you can and cannot do with AI, and which data is safe to share versus what must remain private.

Many business owners carelessly send sensitive information—such as customer IDs, original contracts, and bank account details—to AI platforms. If this data is leaked or misused, the consequences can be severe. Furthermore, regulations are already in effect: China's "Interim Measures for the Management of Generative Artificial Intelligence Services," implemented in 2023, not only governs AI service providers but also holds users accountable. You bear full responsibility if AI-generated content infringes on copyrights or compromises user privacy—not the AI company. Additionally, sharing your company's core data (customer lists, pricing strategies, supplier information) with public AI platforms risks having that data used to train models, effectively exposing your trade secrets.

We help clients establish AI compliance through five steps. Step 1: Data Classification — categorize enterprise data into four levels: public, internal, sensitive, and confidential. Public and internal data may be processed using public AI tools; sensitive and confidential data must only be handled by on-premise AI solutions or after anonymization before using public AI. Step 2: Define Usage Policies — specify which scenarios allow AI use, who is authorized to use it, and the rules that must be followed. Step 3: Select Compliant AI Providers — prioritize providers with data centers in China that adhere to Chinese laws and regulations. Step 4: Maintain Usage Logs — retain input and output records when AI is used for critical business operations. Step 5: Conduct Regular Training — ensure employees understand the fundamentals of AI compliance.

A common pitfall is dumping all data into AI. Some executives mistakenly believe AI can handle everything, feeding it sensitive information like phone numbers, ID card numbers, bank account details, and contract amounts. If this data leaks, the consequences could be devastating. Another major risk is publishing AI-generated content without review. AI may produce biased, discriminatory, or false information. Publishing such content on your WeChat official account or website puts you legally liable.

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