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How German Machine Manufacturers in China May Use AI to Secure Their Lead, and Legal Risks to Consider
In a fraction of the time, generative artificial intelligence (AI) models can perform a wide range of tasks like text analysis, image analysis, data analysis, or classification of human-like quality, which is useful in industry manufacturing processes. China, alongside the US, is the AI global leader, with around 40% of the world's published generative AI models.
Strict regulatory restrictions in China have led to the rapid development of a diverse range of domestic generative AI models. Some of these models, published as open-source, outperform US models for the Chinese language, allowing any company to download, run on their own servers, and commercially use them.
Generative AI is, above all, a catalyst for innovation for SMEs, as it is now possible for any company to safely integrate the most powerful AI models into its own processes and products. The first step primarily focuses on cost savings, as generative AI models can support or even replace manual and recurring digital processes.
Presentation 1 (Lukas) EN+CN
Topic 1: Generative AI as a Game-changer for Foreign Invested SMEs in China: Outlining the Opportunities and Overview of Use Cases.
主题 1：生成式人工智能将改变中国中小企业的游戏规则： 概述机遇和使用案例
With Generative AI, we are at the beginning of a technological revolution comparable to the epochal transition from the typewriter to the computer. The challenge for foreign-invested companies is that they cannot use the same Generative AI models in the Chinese market as they would use outside China. Therefore, each subsidiary in China must deal with the topic of Generative AI to understand the cost-saving potentials and what other products and services are already being used by their Chinese competitors. If the rapid development and implementation of these advanced AI technologies are ignored, foreign-invested companies run the risk of being left behind by their Chinese competitors in terms of technology and costs.
对于生成式人工智能，我们正处于一场技术革命的开端，堪比从打字机到计算机的划时代转变。国外公司面临的挑战是，他们无法在中国市场使用与在中国境外相同的生成式人工智能模型。 因此，在中国的每家子公司都必须单独处理生成式人工智能这一主题，以便了解有哪些节约成本的潜力及中国竞争对手已经在使用哪些其他产品和服务。如果忽视这些先进人工智能技术的快速发展和应用，国际公司就有可能在技术和成本方面被中国竞争对手甩在后面。
Overview of the Speech
Mr. Lukas Tatge will:
- Introduce the field of Generative AI in China
介绍中国的生成式人工智能领域
- Give an overview of industrial use cases of Generative AI models as well as concrete insights into industrial Generative AI projects of LongAI
概述生成式人工智能模型的工业应用案例，以及 LongAI 的工业生成式人工智能项目 的具体见解
- Provide suggestions and ideas on how to get started with Generative AI as a foreign-invested SME in China
为中国中小企业如何开始使用生成式人工智能提供建议和思路
PRESENTATION 2 (ONDREJ) EN+CN
Topic 2: Legal Framework for Generative AI in China and Legal Challenges in its Application Faced by Foreign-Invested SMEs
主题2：中国人工智能法律框架及外商投资中小企业在应用中面临的法律挑战
Due to the competitive pressure not only on the Chinese market, SMEs are forced to implement AI solutions in their businesses in China to reduce costs, increase operational efficiency, improve competitiveness, and secure their lead in the market.
As the current AI regulatory framework includes requirements not only for Generative AI developers and providers but also for companies that use Generative AI tools in their operations, companies planning to implement Generative AI tools in their operations need to be aware of current AI legislation and the respective legal challenges and risks, including administrative sanctions, contractual penalties, compensatory damages, and criminal liability.
由于中国市场的竞争压力，中小企业不得不在其中国业务中实施人工智能解决方案，以降低成本、提高运营效率、增强竞争力并确保其在市场中的领先地位。
由于当前的人工智能监管框架不仅包括对人工智能开发商和提供商的要求，还包括对在运营中使用人工智能工具的公司的要求，因此计划在运营中实施人工智能工具的公司需要了解当前的人工智能立法以及相应的法律挑战和风险，包括行政处罚、合同处罚、赔偿损失和刑事责任。
Overview of the Speech
Mr. Ondrej Zapletal will:
- Introduce policies, recent regulatory developments, and the current legal framework for Generative AI in China
介绍中国的政策、近期监管发展以及当前的人工智能法律框架
- Point out the legal challenges and risks arising from the use of Generative AI in foreign-invested companies' operations in China
指出外商投资企业在中国运营中使用人工智能所带来的法律挑战和风险
- Share ideas on how to reduce the respective risks
分享如何降低相应风险的想法
Speakers
Lukas Tatge
Co-founder & CEO of LongAI at LongAI
Lukas Tatge is an accomplished technology entrepreneur and the co-founder and CEO of LongAI, based in Shanghai. LongAI is a leading international software development firm specializing in generative AI technologies, providing advanced document processing and data extraction solutions to European SMEs. Prior to his current role, Lukas founded several companies in the fields of Big Data Analytics and Data Intelligence. He holds dual master's degrees from the University of Nanjing and the University of Göttingen.
Ondrej
Zapletal
Legal Counsel at Burkardt & Partner Rechtsanwälte
Ondrej Zapletal is a legal counsel at Burkardt & Partner Rechtsanwälte based in Shanghai. He advises predominantly European SMEs on their investments and businesses in China. His expertise lies mainly in PRC commercial law and data protection law. He holds two master’s degrees in Law and Legal Science from Masaryk University and in PRC Civil and Commercial Law from the Shanghai East China University of Political Science and Law.
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Generative AI as a Game-changer for Foreign-invested SMEs in China: Outlining the Opportunities and Overview of Use Cases
Speakers
Lukas Tatge
Co-founder & CEO of LongAI at LongAILukas Tatge is an accomplished technology entrepreneur and the co-founder and CEO of LongAI, based in Shanghai. LongAI is a leading international software development firm specializing in generative AI technologies, providing advanced document processing and data extraction solutions to European SMEs. Prior to his current role, Lukas founded several companies in the fields of Big Data Analytics and Data Intelligence. He holds dual master's degrees from the University of Nanjing and the University of Göttingen.
Legal Framework for Generative AI in China and Legal Challenges in its Application Faced by Foreign Invested SMEs
Speakers
Ondrej Zapletal
Legal Counsel at Burkardt & Partner RechtsanwälteOndrej Zapletal is a legal counsel at Burkardt & Partner Rechtsanwälte based in Shanghai. He advises predominantly European SMEs on their investments and businesses in China. His expertise lies mainly in PRC commercial law and data protection law. He holds two master’s degrees in Law and Legal Science from Masaryk University and in PRC Civil and Commercial Law from the Shanghai East China University of Political Science and Law.
Sponsors and Partners
Association Sponsor
VDMA
The German Mechanical Engineering Association (VDMA – Verband Deutscher Maschinen und Anlagenbau) is Germany's and Europe's largest industry association for the capital goods sector. There are over 3600 member companies within the association. The association is structured into 37 sub-associations. In China, VDMA is active since 2004 with one location in Beijing and one in Shanghai. VDMA China has now 15 qualified and experienced engineers, economists and market specialists to be your reliable partner in the China market.
Sponsor
BURKARDT & PARTNER
Burkardt & Partner Rechtsanwälte is a PRC-licensed law firm with a German management, specialized in advising medium-sized enterprises, but also company groups and multinational companies from Germany, Switzerland and Austria on their investments in China. We are admitted to advise foreign and Chinese companies on extrajudicial matters, including, but not limited to the establishment and acquisition of companies as well as judicial matters including representing the clients in litigation before courts and arbitration throughout China. We do not only provide legal advice in a strict sense, but also take practical considerations, which are crucial to conducting successful business in China, into account. This also includes government relationship management. Our team consists of German and Chinese lawyers with up to 26 years of professional experience in China, who ensure precise communication with our clients and the highest quality standards without ignoring local peculiarities. Our Chinese lawyers studied abroad or worked in foreign companies and thus have the necessary cultural understanding for our foreign clients. We do not only provide excellent legal advice, but also support our clients in the practical implementation of our advice.
上海申欧律师事务所是一家在中国合法注册的律师事务所，主要为来自德国、瑞士和奥地利的中型企业以及企业集团和跨国公司在中国的投资提供咨询服务。我们不仅向中外客户提供非诉讼咨询服务 - 例如，依法设立及收购企业 – 而且还代理在中国的诉讼及仲裁业务。我们不把自己局限于仅提供严格意义上的法律意见，而是在作出评估时充分考虑中国国情、中国司法实践以及当地具体操作，提出切合实际的建议，并协调管理政企关系。我们的管理层系在中国执业长达26年的德国律师，具有相当丰富的中国经验，保证与我们的客户进行直接和准确无误的沟通，以及所需的服务质量标准。我们的中国律师都曾在国外学习或在中国的外资企业任职，从而都具备与我们的外国客户进行有效沟通的“文化”背景能力。我们不仅提供高质量的法律建议，同时也会在客户实际执行过程中给予支持。