Court holds users liable for generated content online

A landmark Beijing court ruling against a user who spread defamatory, AI-generated videos has thrown tangible weight behind China's crackdown on artificial intelligence abuses.

The decision, which came in March, underscores a national strategy that combines strict legislation, administrative policing and judicial action to govern a domestic AI user base that skyrocketed to over 600 million by the end of last year.

In this case, the court addressed the misuse of AI tools by an internet user who produced defamatory videos about a deceased livestreaming host. The videos falsely claimed that the host relied on pills and alcohol to work, suffered from insomnia and anxiety, and was pressured to stream 15 hours a day. The host's agency sued the user for damaging the agency's reputation.

The court ruled in favor of the plaintiff, emphasizing that AI users must verify the authenticity and credibility of AI-generated content before publication. The defendant failed to label the content as AI-generated and to cite sources, violating existing regulations. Consequently, the court ordered the user to issue an apology and pay financial compensation.

Wu Jiao, the presiding judge, said that AI-generated content cannot be used as an excuse to evade responsibility for truthfulness and legality. She urged users to fact-check all forms of AI-produced material to protect others' rights to reputation, privacy and copyright.

Vice-president of the court, Zhao Changxin, said the rising frequency and variety of AI-related disputes highlight the need for stronger regulatory collaboration to support innovation while protecting individual rights.

Data from the China Internet Network Information Center showed that generative AI users in China reached 602 million by December, a 141.7 percent increase from the previous year.

Xu Hao, a lawyer at Beijing Jingsh Law Firm, praised China's governance approach, noting the effectiveness of recent campaigns against AI-related violations. A recent crackdown by the Cyberspace Administration of China led to the removal of over 14,000 non-compliant AI products and the cleaning up of more than 6 million pieces of illegal information.

Li Ya, a lawyer at Zhongwen Law Firm, emphasized the importance of administrative oversight combined with targeted campaigns, especially as AI technology evolves faster than legislation. He highlighted the requirement for labeling AI-generated content as a key step in building a full accountability chain, reinforcing cybersecurity and public interest.

In March 2025, the Cyberspace Administration of China, the country's top internet regulator, together with three other government departments, issued measures for labeling AI-generated content. The regulation took effect on Sept 1, 2025. It is part of a broader effort to promote the responsible development of AI, curb the spread of disinformation and protect public interests. The rules require clear labeling of AI-generated content throughout its life cycle — from creation to distribution — and define the obligations of all parties involved.

Under the regulation, AI service providers are required to embed both types of labels at the point of generation. Content distribution platforms — such as social media — are required to verify uploaded files for implicit identifiers and add prominent warning labels to any content confirmed or suspected to be AI-generated. Users must also proactively declare AI involvement when publishing such content.

Zheng Ning, head of the law department at Communication University of China's School of Cultural Industries Management, called for stronger interagency coordination and nuanced regulation tailored to different AI technologies. She proposed flexible, time-efficient rules to address regulatory gaps in emerging fields like autonomous intelligence.

Both Xu and Li are closely monitoring research into AI governance by the National People's Congress and the Supreme People's Court. They stressed the importance of having a "red-line" approach that explicitly prohibits practices such as facial data misuse and AI-facilitated fraud, establishing a regulatory baseline while allowing room for innovation.

Xu said that future AI legislation should incorporate dynamic provisions, revisable every two to three years, to stay aligned with technological progress. Li added that AI governance should focus on managing risks rather than restraining technology, reaffirming China's commitment to a people-first approach with safety as its anchor to support the sound development of AI.