ChatGPT, an artificial intelligence (AI) bot that can answer questions, write essays and generate computer code, has ignited discussions in schools and corporate boardrooms alike. But it also raised fears of potential abuses and ethical violations.

China tech companies are eager to announce their AI strategies, and many are closely watching ChatGPT for inspiration. Many have already implemented artificial intelligence into their products and services, such as Proximai's 3D game-like social app, Kunlun Tech's entertainment software, and SleekFlow, a Tiger Global-backed startup.

China’s Kunlun Tech Expects to Release an Open Source Chinese Version of ChatGPT

Last week, China's Kunlun Tech informed CNBC of their plans to release an open source Chinese version of ChatGPT by the middle of this year. He noted that most of their revenue comes from outside China and they expect to incorporate it into products at some point - though he did not specify when or with what functions.

ChatGPT, while still unavailable to Chinese citizens, has caught the attention of companies looking to challenge Microsoft and Google in the digital media space. Proximai, based in Shenzhen, introduced a virtual character into its 3D game-like social app last December that utilized ChatGPT's underlying tech for conversation. On Wednesday, Baidu (BIDU ) revealed it will complete internal testing of its "Ernie Bot" by March.

While the United States has been eagerly chasing after ChatGPT, Chinese tech companies have also announced rival projects. They're closely watching the U.S.-based AI startup's progress as it competes against its rivals across a range of fields from artificial intelligence research to consumer applications.

One of the primary reasons China has shown such an affinity for ChatGPT is its capacity to speak Chinese and comprehend traditional and pop-cultural references. The technology can mimic Hu Xijin's writing style from his role as editor-in-chief of China's largest propaganda mouthpiece; it knows how to translate lyrics from meme songs into Chinese; and it creates posts with emoji-filled graphics inspired by influencers on Xiaohongshu social media platform.

These capabilities are vital for a country like China that wants to keep its AI tools in-house, not only out of security concerns but also to better comprehend its culture and politics. Furthermore, China wants control over how data flows through these tools.

China is pushing for digital sovereignty in areas from semiconductors to basic AI research. In addition to export bans, that could include autonomous AI software and hardware as well.

China's government is likely to step up their efforts as it tightens control over the Internet and other critical elements of its infrastructure, such as the Great Firewall. Along with those measures, Chinese firms are being encouraged to develop AI technologies in-house rather than relying on external vendors.

Tencent and Ant Group Have Been Told Not to Offer Access to ChatGPT

According to Nikkei Asia's report, Chinese regulators have ordered some of the country's leading tech firms not to provide ChatGPT services on their platforms. These include Tencent Holdings and Alibaba's Ant Group - two pioneering AI technologies.

According to the report, Tencent and Ant have been ordered not to offer any ChatGPT-like services directly or through third parties. They must first notify regulators before launching their own products.

Beijing is increasingly concerned that an AI-chatbot's uncensored replies to user inquiries could give rise to disinformation and manipulation of global narratives in pursuit of its own geopolitical interests, the report noted. Furthermore, tensions between the United States and China over Russia's role in the Ukraine conflict have been rising sharply recently.

State media in China once celebrated a "golden age" of advanced AI models, but now caution against their potential danger. The state-owned newspaper Global Times recently warned that an emerging generation of AI tools could have an "unfavorable impact" on society.

Another example is database software startup PingCap, which in January released its Chat2Query service using an API from OpenAI. They claim their product is much better at searching through large data sets than ChatGPT and can handle queries involving sensitive personal information with ease.

But the model still has a ways to go, particularly in terms of iteration and scaling. Furthermore, its engineers believe that more training data is required before it can be as good at answering questions as ChatGPT currently is.

However, Ernie bot's remarkable progress is truly remarkable given its relatively recent launch. This service, developed at the University of Fudan in Shanghai and launched last year, already outpaces some other bots on the market.

Since ChatGPT's public release in November, development has been accelerating rapidly. Recently, search giant Baidu announced it would incorporate AI chatbot technology into its search services.

Tencent and Alibaba have been quietly working on ChatGPT-style AI tools, but they have yet to announce a timeline for launching their services. Even if they do, China's censorship and tight regulations may prove an obstacle in the way of such progress.

Microsoft Says It’s Only Months Ahead of China in A.I. Skills

Tech giants such as Google and Microsoft are racing to catch up to China in terms of artificial intelligence (A.I.) skills, with a major focus on developing generative AI technology that can create new information and content from data sets without any prior input. This field is considered more important than traditional artificial intelligence because it reduces production costs while offering content across a variety of languages.

The enthusiasm surrounding generative AI is reaching its peak, with companies investing billions of dollars to explore potential real-world applications. But as the hype circle nears its climactic conclusion, there remain many unanswered questions about how this technology will be integrated into everyday life.

China has long been recognized as an AI powerhouse, and the country has invested heavily in research. Baidu, for instance, has a machine learning system called Ernie that they've been working on for years. According to someone familiar with the matter, their forthcoming ChatGPT-like tool will be built upon Ernie.

China is investing heavily in AI technology, such as facial recognition and news aggregation. Tencent, a major social media company, is an influential player here with its advanced AI lab that develops tools to process information across its ecosystem.

Another Chinese company is iFlytek, which runs an AI development lab and sells a software-based AI platform to other firms. Since the Lunar New Year holiday, its share price has surged over 20%, rising over 20% for seven trading days.

Even though iFlytek's stock has gone up, it doesn't compare to some of China's other AI-related firms. TRS Information Technology, for instance, saw its shares surge up by as much as 60% while Beijing Haitian Ruisheng Science Technology Ltd. is valued at more than 240 times earnings.

In a wider perspective, China's government is concerned that AI could tip the global power balance in military and economic competition. President Xi Jinping is pushing China to become an AI leader as part of his drive for global military and economic dominance.

ChatGPT Can’t Replace Humans Yet

Though a third of professionals in the United States currently use AI tools for work-related tasks, experts assert that ChatGPT won't replace human jobs entirely; rather, it will enhance employees' existing abilities.

According to OpenAI, ChatGPT is capable of performing calculations and encyclopedia entries more accurately than humans can. Furthermore, it has the capacity for creating questions, answering them accurately, debugging code, crafting essays, term papers, and poems across many genres.

Experts are concerned that this new technology could potentially replace writers and thinkers like those employed in academia and content creation. Psychologist Steven Pinker stated in an interview with The Washington Post, "Not only is it truly amazing, but also frightening because it could create false data."

However, experts maintain that ChatGPT is not yet 100% accurate or dependable. It learned all its information from a massive dataset of text data fed to it during its training process before 2021, meaning the output it provides doesn't always reflect current events or contain accurate or up-to-date facts.

Furthermore, ChatGPT lacks the same capacity for conscious reasoning as a human being. Instead, it draws upon an extensive database of information acquired during its training process and cannot reason independently.

Yet ChatGPT still has the potential to assist those who struggle with reading comprehension. Teen entrepreneur Christine Zhao, for instance, has utilized ChatGPT to create a poem app in Pashto and Farsi for Afghan women to foster emotional awareness and foster interpersonal connections.

One of the primary challenges with ChatGPT is that it can be misused to spread false information or engage in malicious activity. To ensure its efficacy, it must be monitored closely to prevent it from perpetuating harmful biases or stereotypes.

Producing human-like content is a boon for many industries. But it also presents challenges, particularly when it comes to aligning outputs and creating marketing messages that align with a company's business strategy and vision.

Therefore, it's essential to comprehend the advantages of ChatGPT and how it can enhance customer experience and engagement. However, remember that this technology should never replace humans in any role; rather, it should serve primarily as a support tool to facilitate ideation and enhance existing content.